Data Center Market is expected to reach US$ 279 Billion by 2032
Fact.MR predicts that the global data center market is expected to reach a valuation of roughly US$ 77 billion by 2022. By 2032, data center revenue is expected to have grown at a 13.8% CAGR and reach US$ 279 billion. Governments worldwide, including those of China, India, the U.S., and the U.K., are ramping up digital infrastructure investments to establish robust data centers. The collaboration between public and private sectors is accelerating the growth of digital infrastructure, as exemplified by the U.K. government’s commitment of over US$ 1 billion for digital hub development.
The trend of green data centers has gained significant traction due to the rising need for cost-effective and energy-efficient solutions, coupled with a focus on enhanced sustainability. Driven by digitization in every industry, data centers are poised for substantial growth in both mature and emerging markets. Market leaders are capitalizing on the megatrend of digitalization, with a primary strategy of enhancing their services through value addition at every stage of their offerings.
This recently released and informative report illuminates the market insights of IT Data Centers, focusing on key dynamics and their influence throughout the entire value chain, from suppliers to end-users. It delves into the growth trajectory of the IT Data Center Market.
As data centers pivot towards supporting advanced digital strategies, the success of their operations becomes intricately tied to the capabilities of the IT ecosystem in facilitating innovative initiatives. Organizations undergoing a digital business transformation have recognized the imperative for a more decentralized approach to meet the requirements of a robust digital business infrastructure. The escalating speed and volume of data accentuate inefficiencies in transporting information to the data center for processing.
Key Companies Profiled
· IBM Corporation
· Google LLC
· Equinix, Inc.
· AT&T Inc.
· Apple Inc.
· Cisco Systems Inc.
· By Type: New Data Centers, Internal Data Centers, Service Provider Data Centers, Data Center Rebuild
· By Application: Data Centers for IT & Telecom, Data Centers for BFSI, Data Centers for Governments, Data Centers for Healthcare, Others
· By Consulting: Network Design, Network Design & Planning, Security Consulting, Network Analysis, Benchmarking, Needs Assessment, Operation Assessment, Process Improvement
· By Integration: Project Management, Installation, Test & Debug, Custom Software Development, Security Implementation, Change Management, System Configuration, Training & Site Preparation
Revenues from new data centers are likely to surpass US$ 104,000 Mn by 2028-end.
Although data center rebuilds currently account for a significantly lower share of the data center market, an impressive growth rate, even though slightly lower than new data center construction, has been foreseen for data center rebuilds in the upcoming years.
The growth of the data center rebuilds is primarily driven by the hyperscale service providers, who are changing ways an IT space is sold and built. In the meantime, the data center providers are revamping their construction strategies for delivering capacity faster in larger chunks. The ongoing shift of the enterprise IT workloads, moving out of the on-premises data center to purpose-built facilities that are operated by colocation and cloud platforms providers, is the “trend behind the trend”.
Data Center Market: Impressive Momentum for Consulting & Integration of Data Centers
Data center consulting and integration services are likely to record an impressive rise in light of the rising complexity pertaining to the network design requirements. This coupled with the growing need for data centers across a wide range of industrial sectors will continue to augur well for the growth of the data center market in the near future. Revenues from data center consulting & integration are projected to exhibit an impressive 12.5% CAGR through 2028, which is greater than those from installation & construction.
Data center end-user proliferation, in combination with the rise in customizability and versatility in relevant network designs, will continue to be a key growth determinant for data center the market. With data center transformation being one of the top agendas among enterprises, demand for consulting & integration services is high as enterprises seek expertise for aiding their business strategy, planning, and implementation. “Data center service providers that invest in the consulting & integration skills, for supporting the digital initiatives of their customers, will continue to witness robust remunerativeness in the near future,” says a lead Fact.MR analyst.
The data center market will continue to showcase high growth in North America, wherein majority share of the market will continue to be accounted by the U.S. The data center market in Europe will trail that of North America, in terms of revenues; however, revenues from Europe will increase at a comparatively higher rate than those from North America through 2028.
Major Companies have strong customer networks across the globe. Market frontrunners are tech giants with deep pockets, which aids them to invest heavily in development. Additionally, these players offer diversified services that are tailored as per individual customers.
Growth strategies adopted by market participants are agreements & contracts, collaborations, and new product developments to withstand their market position.
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