USD 2.55 Billion
Data Center Infrastructure Market Size, Share, Growth Analysis, By Component(Solution, and Service), By Data Center Type(Enterprise Data Center, Managed Data Center, Colocation Data Center, Cloud and Edge Data Center), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45C2043 |
Region:
Global |
Published Date: March, 2024
Pages:
197
|Tables:
63
|Figures:
75
Data Center Infrastructure Market Insights
Global Data Center Infrastructure Market size was valued at USD 2.55 Billion in 2022 and is expected to grow from USD 2.96 Billion in 2023 to reach USD 9.62 Billion by 2031, at a CAGR of 15.9% during the forecast period (2024-2031).
The purpose of the data center infrastructure market is to provide the necessary physical and technological foundation for efficient and reliable data processing, storage, and management. The key driving factors for the data center infrastructure market is the rapid growth of digital data and the increasing demand for cloud-based services. The data center infrastructure market includes addressing the ever-increasing demand for higher performance, reliability, and energy efficiency. Data centers need to keep up with technological advancements and industry standards to remain competitive. The global data center infrastructure market plays a crucial role in supporting the growing digital ecosystem. While facing challenges such as cost, energy consumption, and security concerns, the market benefits from the increasing demand for data processing and storage. By leveraging opportunities in emerging technologies and addressing industry-specific needs, the data center infrastructure market is poised for further growth and innovation.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Solution
Fastest Growth
Solution
Growth Rate
15.9% CAGR
Global Data Center Infrastructure Market ($ Bn)
Country Share for North America Region (%)
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Data Center Infrastructure Market Segmental Analysis
The global data center infrastructure market is segmented on the basis of component, data center type, and region. Based on component, the market is segmented into solution, and service. By data center type, the market is segmented into enterprise data center, managed data center, colocation data center, and cloud and edge data center. Regionwise, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Data Center Infrastructure Market Analysis by Component
The data center infrastructure market is divided into two main components: solutions and services. Among these, the solution segment held the largest share of revenue, accounting for 77.9% in 2022, and is projected to maintain its dominance throughout the forecast period. Within the solution segment, there are two sub-categories: equipment and software. Equipment encompasses various hardware components such as servers, power management systems, thermal management solutions, storage devices, network storage, and networking tools. On the other hand, data center infrastructure management (DCIM) software plays a crucial role in locating and connecting IT systems within a data center.
The service segment is anticipated to exhibit the highest compound annual growth rate (CAGR) of 18.2% during the forecast period. Service providers offering managed services enable organizations to efficiently manage their power chain, allocate space for new hardware and equipment, and leverage the features of DCIM software. Additionally, managed services assist organizations in reducing service delivery costs, thereby contributing to an increased return on investment.
Data Center Infrastructure Market Analysis by Data Center Type
In 2022, the enterprise data center segment played a significant role in the global data center infrastructure industry, contributing 39.2% to the total revenue share. Enterprise data centers are facilities maintained by organizations to meet their data processing and storage requirements. These data centers encompass various supporting infrastructures, including environmental control systems, cooling systems, electricity management, and monitoring systems. They also house physical computing equipment such as network systems, servers, and storage devices. With an on-premises environment, organizations have direct access to their servers and enjoy better infrastructure management. They can deploy applications that are tailored to their specific needs and install proprietary hardware as required.
The cloud and edge data center segment are projected to witness the highest compound annual growth rate (CAGR) of 17.7% during the assessment period. Cloud data centers are increasingly adopted by organizations due to their inherent benefits, including flexibility, scalability, and the ability to focus resources on core business operations rather than managing complex IT infrastructure. Compared to public clouds, edge data centers are located closer to end-users. They enable the deployment of next-generation applications and provide clients with advantages such as increased security, reduced latency, and enhanced data control. Furthermore, edge data centers help reduce the volume of traffic sent to and from central servers. This reduction is particularly valuable for high-bandwidth applications as it lowers data transmission and routing costs.
Global Data Center Infrastructure Market By Component
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Data Center Infrastructure Market Regional Insights
North America emerged as the leading region in the data center infrastructure market, holding a substantial revenue share of 40.82% in 2022, and it is projected to maintain its position throughout the forecast period. The early adoption of data center infrastructure management software and services in this region has been a key driving factor for its growth. Moreover, the increasing prevalence of mobile broadband, cloud computing, and big data analytics in North America has resulted in a heightened demand for additional data center infrastructure. Cloud scene, a data center directory, reports that Canada alone has 328 data centers, with Toronto hosting approximately 118, while Montreal and Vancouver house around 59 and 42 data centers, respectively. These statistics highlight the significant investments made in data center development in the region.
Asia Pacific (APAC) region is experiencing the fastest growth in the data center infrastructure market. Countries like China and Japan are making substantial investments in various industries such as banking, financial services, and insurance (BFSI), retail, healthcare, manufacturing, telecommunications, and IT. These investments are leading to the expansion and economic growth of APAC nations. For instance, in September 2021, Trend Micro Incorporated, a global cybersecurity software company, launched its regional data center named Cloud One in India. The establishment of this data center aimed to ensure data privacy and data sovereignty within the country.
Global Data center infrastructure Market By Geography
- Largest
- Fastest
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Data Center Infrastructure Market Dynamics
Data Center Infrastructure Market Drivers
Increasing Demand for Cloud Services
- The growing adoption of cloud services by businesses and individuals has been a major driver for the data center infrastructure market. Organizations are leveraging the flexibility, scalability, and cost-efficiency offered by cloud platforms to store and process their data. The demand for data centers to support cloud-based services has been consistently rising, driving the growth of the market.
Rise in Data Generation and Storage Needs
- The exponential growth of digital data, fueled by emerging technologies like IoT, AI, and Big Data analytics, has led to a surge in data generation and storage requirements. Organizations across various industries are accumulating vast amounts of data, necessitating robust data center infrastructure to store, process, and manage this data efficiently.
Data Center Infrastructure Market Restraints
High Cost of Infrastructure
- Building and maintaining data center infrastructure involves significant investments in equipment, power and cooling systems, networking, and security measures. The high upfront costs associated with data center infrastructure can act as a restraint, especially for small and medium-sized enterprises with limited budgets.
Energy Consumption and Environmental Impact
- Data centers consume substantial amounts of electricity to power and cool their infrastructure. The energy consumption and environmental impact of data centers have become growing concerns. Increasing energy costs and the need for sustainable practices pose challenges for data center operators to improve energy efficiency and reduce their carbon footprint.
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Data Center Infrastructure Market Competitive Landscape
The global data center infrastructure market is highly competitive, characterized by the presence of a diverse range of players offering a wide array of products and services. The competitive landscape is shaped by both established companies with a strong market presence and emerging players striving to gain a foothold in the industry. The competition is driven by factors such as technological advancements, customer requirements, pricing strategies, and service quality. Several key players dominate the data center infrastructure market. Companies like Equinix, Digital Realty, and NTT Communications are at the forefront, leveraging their extensive global networks and strong customer relationships. Equinix, headquartered in the United States, is known for its robust interconnection services and a vast portfolio of data centers across various regions. Digital Realty, also based in the United States, operates a significant number of data centers worldwide, offering scalable and flexible solutions to meet diverse customer needs. NTT Communications, headquartered in Japan, is a leading global provider of data center services and solutions, leveraging its extensive network infrastructure.
Data Center Infrastructure Market Top Player’s Company Profiles
- China Telecom (China)
- CenturyLink (US)
- Verizon Communications (US)
- AT&T (US)
- Global Switch (UK)
- KDDI Corporation (Japan)
- CyrusOne (US)
- CoreSite Realty Corporation (US)
- Interxion (Netherlands)
- SunGard Availability Services (US)
- BT Group (UK)
- China Unicom (China)
- Level 3 Communications (US)
- Telehouse (UK)
- China Mobile (China)
- Colt Technology Services (UK)
- Teraco Data Environments (South Africa)
Data Center Infrastructure Market Recent Developments
- In June 2022, Schneider announced the launch of EcoStruxure Data Center Operation 4.0 platform in 2022. This platform provides data center operators with a single view of their infrastructure, which can be used to improve efficiency and manage risk.
- In January 2022, the Baltic region's biggest and most energy-efficient data center, Siemens, implemented integrated data center management software. White space cooling optimization (WSCO), energy and power management software (EPS), and building management software (BMS) are all used in greenery data centers to control energy use, maintain thermal protection, and ensure the reliable operation of critical infrastructure.
- In February 2021, Databox, a renowned supplier of its channels, partnered with Delta to offer up and data center solutions. Through this partnership, Databox will offer its resellers and system integrators throughout Portugal energy-efficient uninterruptible power supplies and data center infrastructure solutions from the delta.
Data Center Infrastructure Key Market Trends
- Green Data Centers: To address the environmental impact, there is a rising trend towards green data centers. These data centers focus on energy-efficient infrastructure, renewable energy sources, and sustainable cooling systems to minimize their carbon footprint.
- Hybrid and Multi-Cloud Environments: Organizations are adopting hybrid and multi-cloud strategies to leverage the benefits of both private and public clouds. This trend drives the need for interconnected data centers, reliable connectivity, and seamless data transfer between different cloud environments.
Data Center Infrastructure Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global data center infrastructure market analysis, the increasing demand for cloud computing services, the rise in data generation from various sources, and the need for secure and efficient data management are the key growth drivers. Organizations across different sectors, including technology, finance, healthcare, and retail, require robust data center infrastructure to store and process their vast amounts of data. The global data center infrastructure market is experiencing substantial growth driven by the increasing demand for cloud services and the rise in data generation. It offers a range of solutions and services to support data storage, processing, and management needs across various industries. The market is evolving with trends such as cloud adoption and the emergence of edge computing. However, challenges related to costs, security, and energy consumption persist. With ongoing innovation and investment, the market is poised for further development and advancements in the coming years.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 2.55 Billion |
| Market size value in 2031 | USD 9.62 Billion |
| Growth Rate | 15.9% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Data Center Infrastructure Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Data Center Infrastructure Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Data Center Infrastructure Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Data Center Infrastructure Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Data Center Infrastructure Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Data Center Infrastructure Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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