The data center market size was valued at USD 214.6 billion in 2021 and is projected to reach USD 286.2 billion by 2030, expanding at a CAGR of 4.94% during the forecast period, 2022 – 2030. The growth of the market is attributed to increasing demand for cloud storage across the globe.
A data center is a location where a company's shared IT operations and equipment are concentrated for the processing, storage, and distribution of data and applications. A data center is a key asset for daily operations since businesses rely largely on the apps, services, and data it contains. As a result, data center security and reliability, as well as the information they contain, are key issues for any company. Data centers used to be tightly managed physical infrastructure; however, the cloud service has changed that. As more businesses turn to cloud computing, the lines between cloud providers' data centers and enterprise data centers become blurred. Data centers are an essential component of any business, supporting business applications and providing services. Companies use advanced power management systems like battery monitoring equipment, smart uninterruptible power supply (UPS), and intelligent rack power distribution units (PDU) to lower the power usage efficiency (PUE) ratio and boost efficiency. Technology such as cloud computing, needs a lot of processing power. However, it provides advantages such as increased flexibility, efficiency, and scalability in corporate operations, leading to many medium-sized businesses implementing effective data centers, such as web hosting clouds and colocation data centers.
The COVID-19 pandemic had a significant impact on the data center power industry, particularly organizations, due to the total ban on offline activities in most parts of the world. However, the demand for data centers is being driven by the demand for software as a service (SaaS), as well as the opportunity to work from home during the pandemic.
Market Trends, Drivers, Restraints, and Opportunities
- Rise in advanced technologies being introduced to reduce power consumption, as well as the advent of modular data centers, is estimated to boost the market.
- The market has seen remarkable expansion in data center-driven technology and services, which is projected to create immense opportunities for the market players.
- The use of data centers has increased, resulting in the development of mega and cloud data centers, this is expected to fuel the market.
- The rise in data privacy concerns, as well as the growing need for managed services, is emerging as a major barrier to early adoption, thus hindering the market growth.
- Increase in data center technology spending, as well as the adoption of multi-cloud and network improvements to support it 5G technology is expected to create lucrative opportunities for the market growth.
Scope of the Report
The report on the global data center market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
|
Attributes
|
Details
|
|
Report Title
|
Data Center Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
|
|
Base Year
|
2021
|
|
Historic Data
|
2019–2020
|
|
Forecast Period
|
2022 – 2030
|
|
Segmentation
|
Products (Busway, UPS, PDU, and Others), Types (Web Hosting Data Centers and Corporate Data Centers), End Users (Retail, Healthcare, Energy, Government, BFSI, IT & Telecommunications, and Others)
|
|
Regional Scope
|
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
|
|
Report Coverage
|
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
|
|
Key Players Covered in the Report
|
SAP SE; Oracle; Equinix Inc.; NTT Communication Corporation; Microsoft; Cisco Systems, Inc.; IBM Corporation; Google Inc.; Hewlett Packard Enterprise; Equinix Inc.; Digital Realty; Apple Inc.; Amazon.com Inc.; and Alphabet Inc.
|
Market Segment Insights
The PDU segment is projected to expand at a CAGR of around 8% during the forecast period
Based on products, the market is segregated into busway, UPS, PDU, and others. The PDU segment is projected to expand at a CAGR of around 8% during the forecast period. Growth of the segment is attributed to increasing adoption of intelligent power distribution units. Companies are moving away from simple multi-socket racks with network and server equipment in favor of intelligent PDUs in recent years. Intelligent power distribution devices can measure dispersed electrical characteristics as well as recognize external elements like humidity and temperature. Additionally, these units provide data center operators and administrators with a thorough insight of the condition inside a data center rack. The UPS segment held major market share in 2021. Increasing integration of cloud computing along with the requirement for the ubiquitous and sensitive has driven the demand of this product. Moreover, the usage of portable UPS system in applications such as online media streaming, online gaming, high-performance computing, and Software as a Service (SaaS) has boosted the segment growth.
The corporate data center segment is held major market share in 2021
In terms of types, the market is bifurcated into web hosting data centers and corporate data centers. The corporate data center segment is held major market share in 2021 and is estimated to continue its dominance during the forecast period. This is due to the fact that many large firms require economic data centers capable of storing, sending, retrieving, and backing up massive amounts of data and information.
The IT & telecommunication segment is estimated to grow at a rapid pace during the forecast period
On the basis of end-users, the market is fragmented into retail, healthcare, energy, government, BFSI, IT & telecommunications, and others. The IT & telecommunication segment is estimated to grow at a rapid pace and is projected to exceed USD 2.2 billion during the forecast period. Growth of the segment is attributed to rapid increase in the growth and development of IT infrastructure. Furthermore, the expanding telecommunication infrastructure necessitates the construction of data storage facilities to handle massive amounts of data. Moreover, in IT and telecommunication facilities, maintenance, energy usage, and reliability are crucial. These factors are expected to drive the market during forecast period. One of the key causes for growing demand for BFSI services is the increased focus on digitization. Furthermore, in order to improve banking capacity, the sector has moved its focus to cloud computing and cloud networking, thus fueling the demand for data center.
Asia Pacific is anticipated to expand at a high CAGR during the forecast period
In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is anticipated to expand at a high CAGR during the forecast period. Growth of the market in the region is attributed to rapid growth in the number of colocation data centers in developing markets like China and India. Moreover, increasing subscribers through tablet and smartphones globally are projected to propel the regional market.
North America accounted for the key market share in 2021 owing to large number of data centers present in the region. Governments and regulatory agencies have created and implemented a variety of policies and standards to minimize carbon footprints and energy usage. As a result, there has been widespread acceptance of efficient power management technologies, which has fueled regional demand. Organizations, for example, spend a significant amount of their expenditures on maintenance and cooling systems. As a result, effective power management equipment such as UPS, busways, and PDUs are required to reduce wasteful data center spending.
Segments
The global data center market has been segmented on the basis of
Products
Types
- Web Hosting Data Centers
- Corporate Data Centers
End Users
- Retail
- Healthcare
- Energy
- Government
- BFSI
- IT & Telecommunications
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- SAP SE
- Oracle
- Equinix Inc.
- NTT Communication Corporation
- Microsoft
- Cisco Systems, Inc.
- IBM Corporation
- Google Inc.
- Hewlett Packard Enterprise
- Equinix Inc.
- Digital Realty
- Apple Inc.
- Amazon.com Inc.
- Alphabet Inc.
Competitive Landscape
Key players competing in the data center market include SAP SE; Oracle; Equinix Inc.; NTT Communication Corporation; Microsoft; Cisco Systems, Inc.; IBM Corporation; Google Inc.; Hewlett Packard Enterprise; Equinix Inc.; Digital Realty; Apple Inc.; Amazon.com Inc.; and Alphabet Inc. Some of these players are using several market strategies such as acquisitions, merger, collaborations, partnerships, capacity expansion, and product launches to enhance their market shares and to generate revenue and raise their production line of the business in the coming years. For instance,
- In February 2020, Arista Networks, a pioneer in software-defined networking, had acquired Big Switch Networks (SDN). Big Switch Networks delivers network statistics and analytics to assist network administrators in better managing their networks.
- In March 2020, Cisco partnered with Airtel, India’s leading industrial telco, to develop country’s first 100G IP, 5-G ready, and integrated optical network, which will improve network scale, capacity, and availability.
Request For Customization
Enquiry Before Buying
Speak With Analyst
