USD 231.22 Billion
Data Center Market Size, Share, Growth Analysis, By Component(Hardware (servers, enterprise network equipment PDU, and UPS), software (DCIM), By Type(On-premise, hyperscale, HPC, Colocation), By Server Rack Density(<10kW, 10-19kW, 20-29kW, 30-39kW), By Data Center Redundancy(N+1, 2N, N+2, N), By PUE(1.2, 1.2 - 1.5, 1.5 - 2.0, Greater than 2.0), By Design(traditional, containerized, modular), By Tier Level (Tier 1, Tier 2, Tier 3, Tier 4), By Enterprise Size(Large enterprise, small & medium enterprises), By End User(Cloud service provider, technology provider, telecom, healthcare), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45B2088 |
Region:
Global |
Published Date: June, 2024
Pages:
157
|Tables:
272
|Figures:
82
Data Center Market Insights
Global Data Center Market size was valued at USD 342.06 Billion in 2022 and is poised to grow from USD 364.50 Billion in 2023 to USD 605.96 Billion by 2031, growing at a CAGR of 6.56% during the forecast period (2024-2031).
The proliferation of 5G networks increases data transmission speeds and allows new applications, creating increased demand for data center infrastructure to handle increased data traffic. This wireless technology requires speeds that it increases for faster downloads, faster access and smoother streaming to online services. Demand for wave speed data center is building, and cloud services require a robust data center to manage and host application and computing resources. With cloud providers focusing on providing edge computing services, which require smaller data centers or edge locations closer to users, the demand for micro data centers is increasing. Cloud services are widely adopted in SMEs and large enterprises is driving the market growth.
Furthermore, the increasing popularity of the portable, compact, modularized data center is expected to provide a greater base for microdata centers. Microdata centers with data centers close to machines or users reduce latency, which is important for applications that require immediate response such as industrial automation or autonomous vehicles. Furthermore, micro data centers are easy to implement or develop based on needs.
US Data Center Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Cloud Data Center
Fastest Growth
Cloud Data Center
Growth Rate
5.10% CAGR
Global Data Center Market ($ Bn)
Country Share for North America Region (%)
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Data Center Market Segmental Analysis
The Global Data Center Market is segmented by Component, Type, Server Rack Density, Data Center Redundancy, PUE, Design, Tier Level, Enterprise Size, End User, and Region. Based on Component, the market is segmented into Hardware, Software, And Services. Based on Hardware, the market is segmented into Servers, Enterprise Network Equipment PDU, and UPS. Based on Software, the market is segmented into DCIM, Virtualization, and Others. Based on Services, the market is segmented into Managed Infrastructure Services, Hosting Services, Support Services, and Professional Services. Based on Type, the market is segmented into On-premise, Hyperscale, HPC, Colocation, and Edge. Based on Server Rack Density, the market is segmented into <10kW, 10-19kW, 20-29kW, 30-39kW, 40-49kW, and >50kW. Based on Data Center Redundancy, the market is segmented into N+1, 2N, N+2, and N. Based on PUE, the market is segmented into Less than 1.2, 1.2 - 1.5, 1.5 - 2.0, and Greater than 2.0. Based on Design, the market is segmented into Traditional, Containerized, and Modular. Based on Tier Level, the market is segmented into Tier 1, Tier 2, Tier 3, and Tier 4. Based on Enterprise Size, the market is segmented into Large Enterprise, and Small & Medium Enterprises. Based on End User, the market is segmented into Cloud Service Provider, Technology Provider, Telecom, Healthcare, BFSI, Retail & E-commerce, Entertainment & Media, Energy, and Others. Based on Region, the market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America.
Analysis by Component
The hardware segment accounted for the highest revenue growth of the market at 65% in 2022. Data storage to expand its storage and processing capabilities due to the tremendous growth of the social media and digital communication. As hardware technologies such as CPUs, servers, storage devices, GPUs, and memory evolve, data centers need to upgrade their hardware installations. More customized hardware solutions are needed to deliver services dense and model training accelerating the hardware portion of the market.
The software segment is expected to witness the fastest growth during the forecast period at a CAGR of over 12%. Growing demand for the virtualization and cloud computing is expected to boost the growth of the software segment. Advanced software solutions can help enhance the security of data centers through strong encryption, intrusion detection, access control, and monitoring. Additionally, the growing need for a green, energy-efficient data center relies on enhanced software solutions to monitor cooling systems, energy consumption, and other functions.
Analysis by Type
The on-premises segment has the largest revenue share of nearly 40% of the market. In addition, managing and building the data centers on campus enables you to optimize infrastructure to meet critical business needs, business requirements, and application requirements. On-premises data centers are also the best applications as it requires the high performance and low latency.
The hyperscale segment is expected to register the fastest growth at a CAGR of over 13% during the forecast period. The increasing demand for cloud computing services drives the need for ultra-scale data centers to provide the increased storage, computing power and network resources needed to support a wide range of cloud-based applications effectively.
Global Data Center Market By Component (%)
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Data Center Market Regional Insights
North America accounted for the largest market share of around 40% in 2022. The growing digital economy in the region is increasing the need for data centers to serve cloud computing, e-commerce, online services, and other digital projects. Cloud services are widely used in North America due to their flexibility. Cloud providers need more data centers to expand their infrastructure. Data centers are needed to store, process and analyze this data.
Asia-Pacific is expected to register the fastest growth rate, at a CAGR of around 13%, during the forecast period. Finance, healthcare, manufacturing and retail are among the fastest digitizing industries in Asia Pacific. This digital transformation calls for data centers to support cloud computing, IoT, AI, and other technological endeavors. Data centers are needed to manage online transactions, inventory and customer data to provide a seamless and efficient shopping experience for the growing Asia-Pacific eCommerce industry.
Global Data Center Market By Geography
- Largest
- Fastest
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Data Center Market Dynamics
Data Center Market Driver
Rise in the Data Intensification
- Increasing demands for data storage and processing, driven by expanded cloud computing, big data analytics, and digital transformation, are driving the need for multiple data centers. Projects and customers generate and consume large amounts of data, requiring large amounts of data processing central capacity.
Rising Adoption of Cloud Services
- Rapid enterprise adoption of cloud services is an important driver of the data center market. Companies are shifting from on-premises infrastructure to cloud-based solutions to increase scalability, flexibility and cost savings. This trend is encouraging data center operators to expand their facilities and invest in advanced technology.
Restraints
High Operating Costs
- Operating data centers involves high costs including energy consumption, cooling systems and maintenance. The high costs associated with managing and maintaining data centers can be a significant limitation, especially for small businesses or start-ups with limited budgets.
Environmental Concerns and Regulations
- Data centers consume a lot of energy and contribute to carbon emissions. Increasing regulatory pressures on sustainability, energy efficiency, and environmental concerns pose challenges for data center operators. Compliance with stringent environmental regulations may require significant investments in green technologies and practices.
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Data Center Market Competitive Landscape
The competitive landscape of the global data center market is dominated by a mix of established tech giants and emerging players. Key players lead the market with extensive global networks, advanced technologies, and substantial financial resources. Equinix, a global leader in data center and colocation services, partnered with Google Cloud to enhance hybrid cloud solutions. This collaboration allows customers to seamlessly connect their on-premises infrastructure with Google Cloud’s services, offering increased flexibility and scalability. The partnership leverages Equinix’s extensive global data center network to provide low-latency connections and improved performance for Google Cloud users.
Data Center Market Top Player’s Profiles
- Hewlett Packard Enterprise (HPE) (United States)
- Cisco System, Inc. (United States)
- Hitachi Ltd (Japan)
- IBM Corporation (United States)
- NTT Communications (Japan)
- ABB (Switzerland)
- Dell Technologies (United States)
- Schneider Electric (France)
- Comarch SA (Poland)
- Huawei Technologies Co., Ltd. (China)
- SAP SE (Germany)
- Equinix Inc. (United States)
- Oracle (United States)
- Amazon.com Inc. (United States)
- Alphabet Inc. (United States)
- Microsoft (United States)
- Digital Realty (United States)
- Tata Communications Ltd (India)
- GPX India Pvt. Ltd. (India)
- Aermec UK Ltd. (United Kingdom)
Data Center Market Recent Developments
-
In March 2024, Ardian, a private investment firm revealed that a deal with Verne, the UK based green data center platform has been sealed. This latest deal also contributed to the growth of Ardian’s focus in late last year Verne robust expansion plan in Northern Europe to support with a fund commitment of up to 1 billion $. 2 billion. The funding for this grand plan is achievable through newly incorporated green financing package floating marked by a group of European and International renowned banks.
-
In January 2024, Evoque Data Center Solutions, a company offering colocation, connectivity and infrastructure services, unveiled that it had successfully acquired Cyxtera’s data center portfolio. The result of this merger is a large new data center firm, with more than 50 facilities and located predominantly in North America. Udhay Mathialagan, Evoque’s Chairman of the Board and Brookfield Infrastructure’s CEO and Global Data Centers pointed out that the merger with Cyxtera is in line with their long-term plan toward Data Infrastructure Investments.
Data Center Key Market Trends
- Rise in the Edge Computing Growth: The rise of edge computing is changing the data center landscape. Since tasks and applications require faster data processing and lower latency, edge computing brings data processing closer to the data birth source. This trend is driving smaller distributed data centers alongside larger traditional data centers and provides efficient and real -time data processing.
Data Center 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 SkyQuest analysis, the market is evolving, as companies continue to invest in digital technologies. This is because many organizations are now shifting to the use of data centers in their business operations after realizing that business decisions, which are aptly informed by data, depend on the reliability of the data centers. Several significant factors prevail as the determining forces within the markets. The increase usage of cloud computing services is among the key factors that contribute to the adoption of hybrid cloud networks.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 342.06 Billion |
| Market size value in 2031 | USD 605.96 Billion |
| Growth Rate | 6.56% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| 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:-
|
To get a free trial access to our platform which is a one stop solution for all your data requirements for quicker decision making. This platform allows you to compare markets, competitors who are prominent in the market, and mega trends that are influencing the dynamics in the market. Also, get access to detailed SkyQuest exclusive matrix.
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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 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 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 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 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 Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Data Center 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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