The data center services market size was valued at USD 15 Billion in 2020 and is expected to expand at a significant CAGR during forecast period 2021–2028. Growth of the market is attributed to increasing disposable income, minimum capital investment, and rising data center construction projects globally.
A data center services include activities that support the implementation, operation, enhanced data services, maintenance, and all of the services and facility-related components. It is an infrastructure that gives distribution, processing, management, networking, and the storage of data within corporations.
Corporations are adopting solutions offered by data center services to manage operation in data center during Covid-19 pandemic to perform remotely daily operations. Many enterprises across the globe adopted work from home model, due to this fact the demand for solutions offered by data center services is projected to rise during the forecast period. As it provides benefit such as low setup cost, flexibility, and scalability.
Market Trends, Drivers, Restraints, and Opportunities
- Increasing demand for video conference platform is projected to boost the market in the coming years.
- Growing trend for data center colocation is the major factor fueling the market during the forecast period.
- Privacy breach and data security concerns act as a main challenge that can hamper the market expansion in the coming years.
- Lack of IT infrastructures in remote area is projected to restrict the market growth in the coming years.
- R&D investment and technological advancement in data center services market is projected to offer lucrative opportunities for the market players.
Scope of the Report
The report on the data center services market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Data Center Services Market – Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2020
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Historic Data
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2018-2019
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Forecast Period
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2021-2028
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Segmentation
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Services [Cloud and Hosting, Infrastructure, Virtualization, Consulting, and Networks], Data-centers [Tier 1, Tier 2, Tier 3, and Tier 4], End-user Industry [Healthcare, Retail, IT and Telecom, Manufacturing, and BFSI], Deployment Mode [Cloud and On-premise]
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East and Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players covered in the Report
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Hewlett Packard Enterprise Company, HCL Technologies Limited, Fujitsu Ltd, Capgemini SE, Cisco Systems Inc., Nokia Corporation, Sify Technologies Limited, Hitachi Ltd, IBM Corporation, Huawei Technologies Co. Ltd, Schneider Electric SE, NTT Communications, and Vertiv Group Corp.
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Market Segment Insights
The BFSI segment accounts for a key share of the market
Based on end-user industries, the data center services market is segregated into healthcare, retail, IT and telecom, manufacturing, and BFSI. The BFSI segment accounts for a key share of the market. Growth of the market is attributed to increasing urbanization, rapidly expanding industrial sector, and increasing number of SMEs adopting technologies.
However, the IT and telecom segment are anticipated to expand at a rapid pace during the forecast period due to factors such as up to date service to customer and rapid digitalization in healthcare sector.
The cloud and hosting segment is estimated to expand at a substantial CAGR during the forecast peirod
On the basis of services, the data center services market is segmented into cloud and hosting, infrastructure, virtualization, consulting, and networks. The cloud and hosting segment accounts for a significant share of the market. Growth of the market is attributed to increasing demand for massive storage requirements and rise in acceptance of technologies like cloud and 5G. The consulting segment is anticipated to expand at a rapid pace during the forecast period due to factors such as maximum productivity during infrastructure upgrades, rising demand for cloud computing services, and increasing consumption of digital services.
The tier 1 segment holds a major market share
Based on data-centers, the data center services market is divided into tier 1, tier 2, tier 3, and tier 4. The tier 1 segment is projected to expand at a substantial CAGR during the forecast period. A tier 1 data center is a class of data center services that has separate network links, components, and source of servers. It is exclusive forms of data center services tiers and lacks any backup supply and redundant of data center operational services and infrastructure components.
A tier 2 data center services is a place that has several network links, components, and source of servers. It is a center that has redundant mechanisms but solo source and path and limited redundancy in data center cooling resources and power.
The cloud segment is estimated to hold a major market share
Based on deployment mode, the data services market is bifurcated into cloud and on-premise. An on-premises data center services is a set of servers that are privately controlled and owned by enterprises. The cloud segment is estimated to expand at a rapid pace during the forecast period. A cloud facility is a service which can be accessible through a remote cloud computing server. These services are managed by providers and third-party who has access to computing services like networking through internet and analytics.
The market in North America is estimated to hold major market share
On the basis of region, the data center services market is categorized as Asia Pacific, North America, Latin America, Europe, and Middle East and Africa. The market of Asia Pacific is anticipated to expand at a high CAGR during the forecast period due to government organizations are encouraging adaptation of digital technologies across region, increased uses of data storage portable devices, and rising demand for expensive data center establishment.
The market of North America is expected to hold a major market share due to increasing adaptation of digitalization across developing and developed economies, growing use of OTT services across regions, and high demand for maintaining optimum operations.
Segments
Segments Covered in the Report
The data center services market has been segmented on the basis of
Services
- Cloud and Hosting
- Infrastructure
- Virtualization
- Consulting
- Networks
Data-centers
- Tier 1
- Tier 2
- Tier 3
- Tier 4
End-user Industry
- Healthcare
- Retail
- IT and Telecom
- Manufacturing
- BFSI
Deployment mode
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East and Africa
Key Players
- Hewlett Packard Enterprise Company
- HCL Technologies Limited
- Fujitsu Ltd
- Capgemini SE
- Cisco Systems Inc.
- Nokia Corporation
- Sify Technologies Limited
- Hitachi Ltd
- IBM Corporation
- Huawei Technologies Co. Ltd
- Schneider Electric SE
- NTT Communications
- Vertiv Group Corp.
Competitive Landscape
Key players competing in the data center services market include Hewlett Packard Enterprise Company, HCL Technologies Limited, Fujitsu Ltd, Capgemini SE, Cisco Systems Inc., Nokia Corporation, Sify Technologies Limited, Hitachi Ltd, IBM Corporation, Huawei Technologies Co. Ltd, Schneider Electric SE, NTT Communications, and Vertiv Group Corp.
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.
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