Internet Data Center Market Outlook 2031
The Global Internet Data Center Market size was valued at USD 263.34 Billion in 2022 and is likely reach to USD 668.19 Billion by 2031, expanding at a CAGR of 10.9% during the forecast period, 2023-2031. The growth of the market is attributed to growing usage of cloud computing coupled with the need for sensitive and ubiquitous data.
An internet data center is a physical location where companies store vital applications and data. It is built around a network of computers and storage resources that allows for the delivery of shared data and applications. The primary components of a data center design are routers, firewalls, servers, switches, storage systems, and application delivery controllers.
Data center safety is vital for the design of data centers as these components hold and handle critical company data and applications. In order to support the center’s hardware and software, data center components require important infrastructures.
These include power subsystems, ventilation, fire removal, continuous supplies of power, cooling systems, backup generators, and external network connections.
The impact of COVID-19 pandemic has been positive on the internet data center market. During the pandemic, major key sectors saw surge in demand for cloud computing network solutions, which acted as a prime factor for the growth of the market and is expected to remain the same during the forecast period.
Market Trends, Drivers, Restraints, and Opportunities
- Increasing demand for efficient content delivery among users is one of the key factors driving the market growth.
- Wide adoption of advanced technology, such as the Internet of Things, big data, and 5G deployment is expected to boost the market growth in the coming years.
- Growing mobile devices and mobile data traffic is projected to fuel the market expansion during the forecast period.
- High adoption and installation cost associated with internet data center market presents a major challenge. This is anticipated to hamper the market growth in the projected period.
- Shifting of Enterprises from traditional platform towards digitalized platform to improve their business efficiency is projected to create significant growth opportunities for the market in the near future.
Scope of Internet Data Center Market Report
The report on the global internet 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
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Details
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Report Title
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Internet Data Center Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Solutions (Servers, Networking, and Storage Solutions), Services (System Integration, Professional Services, and Monitoring Services), Verticals (Media & Entertainment, Banking, Insurance, Financial Services, and Government), and End-users (Cloud Providers, Enterprises, and Colocation Providers)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & 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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Intel Corp.; VMware, Inc.; Citrix Systems, Inc.; Cisco Systems, Inc.; Dell Technologies Inc.; HP Co., L.P.; Hitachi Data Systems; NEC Corp.; Oracle Corp.; and Riverbed Technology, Inc.
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Internet Data Center Market Segment Insights
Storage segment to grow at a rapid pace
Based on solutions, the global internet data center market is divided into servers, networking, and storage solutions. The storage segment is expected to grow at a rapid pace during the forecast period owing to the wide adoption of the technology and its infrastructure.
However, the server segment is anticipated to hold a key share of the market in the coming years due to the connectivity it offers between different software and applications.
Wide usage to drive professional segment
On the basis of services, the market is segregated into system integration, professional services, and monitoring services. The professional segment is projected to expand at a considerable CAGR during the forecast period attributed to wide usage of the application into several sectors, such as healthcare, banking, and entertainment.
On the other hand, the monitoring segment is anticipated to account for a major market share during the forecast period due to the ability to keep evaluating data as per requirement without being physically present.
Government segment to hold significant market share
In terms of verticals, the global internet data center market is segmented into media & entertainment, banking, insurance, financial services, and government. The government segment is anticipated to hold significant market share in the coming years owing to vast flow of information as data into their database.
However, the banking segment is anticipated to hold a key share of the market in the coming years due to continuous upgradation for improved security in the segment.
Major adoption to drive enterprises segment
Based on end-users, the market is fragmented into cloud providers, enterprises, and colocation providers. The enterprises segment is expected to grow at a rapid pace during the forecast period attributed to the major adoption of the technology and its applications.
On the other hand, the cloud provider is anticipated to account for a major market share during the forecast period due to the need for sensitive and ubiquitous data.
Internet Data Center Market Regional Outlook
North America to constitute a key market share
In terms of regions, the global internet data center market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to constitute a key share of the market during the projected period owing to wide use of the technology along with growing demand across the region.
However, the market of Asia Pacific is anticipated to expand at a rapid pace during the forecast period attributed to rising demand for internet data centers in the region.
Segments
Solutions
- Servers
- Networking
- Storage Solutions
Services
- System Integration
- Professional Services
- Monitoring Services
Verticals
- Media & Entertainment
- Banking
- Insurance
- Financial Services
- Government
End-users
- Cloud Providers
- Enterprises
- Colocation Providers
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
Competitive Landscape
Key players competing in the global internet data center market are Intel Corp.; VMware, Inc.; Citrix Systems, Inc.; Cisco Systems, Inc.; Dell Technologies Inc.; HP Co., L.P.; Hitachi Data Systems; NEC Corp.; Oracle Corp.; and Riverbed Technology, Inc.
As part of their efforts to expand their client base and acquire a competitive advantage over competitors, manufacturers operating in the market have adopted various strategic initiatives, such as partnerships, collaborations, and mergers & acquisitions.
Moreover, companies are focusing on investment in R&D for development and launching of new products to maintain their competitive positions in the market.