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Data Center Renovation Market Share & Size, Analysis Report 2023 – 2032

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Data Center Renovation Market Share & Size, Analysis Report 2023 – 2032

Global Data Center Renovation Market was reached USD 20 billion in 2022 and is projected to register 14% CAGR from 2023 to 2032, driven by rapid advancements in data processing technologies and the escalating demand for increased data storage capabilities. 

As businesses embrace digital transformation, the need for modernized data centers to handle evolving technologies becomes imperative. This surge in demand for enhanced data processing and storage infrastructure will significantly contribute to the expansion of the data center renovation market, making it a pivotal component in meeting the evolving needs of the digital era.

For instance, in 2023, Infosys inaugurated a new center in Sofia, Bulgaria, dedicated to fostering digital transformation in Europe. Emphasizing the recruitment of local talent, the center aims to attract, re-skill, and up-skill 500 employees within the next four years.

The data center renovation market is classified based on product, application, and region.

The IT racks and enclosures will contribute significant gains to the DC renovation market share through 2032. As the demand for enhanced data processing capabilities and upgraded infrastructure intensifies, the role of IT racks and enclosures becomes crucial. Their ability to provide efficient storage and organization of IT equipment aligns with the evolving technological landscape, making them a cornerstone in data center renovations. This emphasis will position IT racks and enclosures to secure a major market share in the coming years.

The BFSI (Banking, Financial Services, and Insurance) segment will register substantial gains through 2032. The financial sector’s increasing reliance on sophisticated data infrastructure, stringent security measures, and the imperative for seamless operations contribute to this dominance. As BFSI entities undergo digital transformations and prioritize data integrity, the demand for renovated and upgraded data centers will surge, positioning the BFSI sector as a major driving force in the market’s growth.

Asia-Pacific data center renovation industry will grow at a noteworthy CAGR from 2023 to 2032. The region’s rapid technological adoption, increasing internet penetration, and the surge in data-driven enterprises contribute to this growth. With a burgeoning demand for upgraded and efficient data infrastructure, Asia Pacific would stand as a key contributor to the data center renovation landscape. Its proactive approach towards technological advancements will position the region at the forefront, driving substantial market share in the dynamic and expanding data center renovation market.



step Asset market

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.

Market Segmentations

·         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.

Competitive Landscape
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.

·         In 2019, Qualcomm Technologies, Inc. launched an AI-based chip family named as Cloud AI 100. The ASIC family comes in a variety of thermal design and form factor points to make a different use case. This newly launched chip is heightened with refined features of AI to provide better performance for devices.


Data Center Power Market: Top Trends Propelling the Industry Demand Through 2026

According to a recent study from market research firm Graphical Research, the global data center power market size is set to register significant growth during the forecast timeframe. With the proliferation of advanced technologies such as artificial intelligence (AI), the internet of things (IoT), 5G, and cloud, the demand for data center power is likely to augment through the next five years. These advanced technologies are expected to be integrated into the systems used by manufacturing companies leading to growing pressure on the IT infrastructure.

The next-generation IT infrastructure is likely to adopt advanced power supply solutions that cope with these pressures. A growing inclination toward customized services is marking a new trend in the market, owing to which, service providers have been catering to the individual demands of the end-users.

The global data center demand has surged during the COVID-19 pandemic, with tremendous consumption of networks due to work from home requirements and higher viewership of OTT platforms. The following top seven trends are expected to accelerate the global data center power market outlook through 2026:

Emphasis toward cutting down energy consumption in America

Data centers consume more than 416 terawatts of power annually, which represents nearly 3% of the total electricity generated on a global scale. As per the Energy Technologies Area or ETA, more than 73 billion kWh were consumed by the U.S. during 2020.

This has brought into focus the need to minimize energy consumption across the region, generating demand for advanced solutions across the data center power market in North America. Power management in data centers can be achieved through the improvement of the flow of power distribution across ventilation systems, environmental control, UPS systems, and lighting.

Spiraling demand for OTT services across Canada and the U.S.

The North American data center power industry forecast is registering a high growth owing to the rising number of intelligent power managing solutions in the region. The popularity of OTT services across the US and Canada has been soaring since the outbreak of the novel coronavirus, with soaring subscriptions across platforms such as Amazon Prime Video, Disney Hotstar, and Netflix.

Additionally, data-intensive businesses have been seeking to minimize greenhouse gas emissions and the PUE ratio, at the same time boosting power efficiency. With this aim in view, several industry participants have been developing smart UPS, intelligent PDUs, as well as battery monitoring equipment.

Digitalization across the North American healthcare industry

The data center power market applications in North America are segmented into healthcare, IT & telecom, BFSI, government, manufacturing, energy, and colocation end-users. Of these, the healthcare industry has been exhibiting a key impact on the market, with a higher need for data center services.

By 2026, the healthcare application segment will see considerable revenue generation, thanks to the growing utilization of digital data and higher emphasis on government standards. Government mandates, including the HIPAA standards, are being enforced in a more stringent manner to ensure higher productivity and efficiency of the healthcare industry.

Extensive adoption across European cabling infrastructure

The cabling infrastructure in European countries is slated for strong growth through the forecast timeline owing to the growing demand for reliable and effective equipment across data centers in the region. Cable management products and solutions are extensively utilized due to their simple, modular designs, and ease of installation. Leading manufacturers in the European data center power market are providing advanced cable management solutions with improved scalability, flexibility, and intelligence.

Growing requirement across Europe’s hyperscale data centers

Owing to the growing integration of advanced power storage devices across hyperscale data centers, the data center power industry share from the UPS segment accounted for a major portion of the total revenue share during 2019. Cloud service providers have particularly been expanding their presence throughout the region by developing mega data centers.

For example, in September 2020, Google LLC announced its plan to invest more than $3.3 billion towards the expansion of its data center footprint in Europe over the span of the next two years. Since hyperscale data centers involve the integration of a host of storage devices and servers, they require an uninterrupted power supply for ensuring continuous transmission and processing of data.

Growing demand for online banking across Asia

Asia Pacific has been witnessing a thriving BFSI sector seeking digital technologies, especially in the wake of the COVID-19 pandemic. Contactless payments, POS terminals, mobile wallets, and online banking, in general, are growing increasingly popular in the last few years.

For instance, in Japan, more than 24 million individuals utilized their smartphones at POS terminals to make payments during 2019. The rising concerns over data center downtime are fueling Asia Pacific data center power market forecast.

Increased internet penetration across APAC

The demand for seamless online video streaming has been escalating synchronously with the expanding internet penetration across Asian countries. The high data consumption rate by Amazon Prime Video, YouTube, and Netflix users will translate to the focus toward the development of a robust data center infrastructure. T

The rapid adoption of 5G, IoT, AI, cloud computing, and other latest technologies across numerous data center construction projects is likely to power the APAC data center power market forecast.

ABB Group, Cisco Systems, Inc., Cummins, Inc., Legrand, Black Box Corporation, Vertiv Group Co., Siemens AG, and Cyber Power Systems, Inc. are some leading data center power solutions providers in the international market.


Data Center Infrastructure Market is Projected to Reach USD 100 Billion by 2027

According to a recent study from market research firm Global Market Insights, The need for data center infrastructure market management among organizations to offer higher energy-efficiencies will be positively driven by the influx of cloud computing, Big Data, and AI solutions. The surge in internet infrastructure activities has led to the generation of large quantities of data by individuals and connected devices.

The rising levels of data traffic have placed an immense power burden on data centers on account of the significant jump in the usage of IoT devices. This has in turn pushed data center operators to increasingly adopt efficient and cost-effective data center infrastructure solutions.

As per a report by Global Market Insights, Inc., the global data center infrastructure market could reach USD 100 billion in annual revenue by 2027.

Owing to the adoption of data analytics, cloud computing, and emerging technologies such as AI, machine learning, and IoT, hyperscale data centers have seen huge demand lately. Big tech giants like Facebook, Amazon, and Google are investing heavily in the construction of hyperscale data center facilities.

These data center infrastructures need high capability and modernized infrastructure for supporting critical IT equipment and offer enhanced data protection. High-density networking servers in these data centers demand security management, power and cooling combinations for enabling energy-efficient operation.

Increasing government initiatives regarding the safety of customer data are encouraging businesses to establish their own data center facilities in the Asia Pacific. For instance, China’s Cybersecurity Law states data localization requirements on Critical Information Infrastructure Operators (CIIOs). The Law guides network operators to analyze, store and process customer data within the country. With this, it is estimated that the Asia Pacific data center infrastructure market may speculate sturdy progress over the forecast period. Multiple initiatives such as Smart Cities, Made in China, and Digital India, may also boost the adoption of IoT and cloud computing in the region.

Mentioned below are some of the key trends driving data center infrastructure market expansion:

1) Growing demand for hyper-scale data centers

Expansion of hyperscale data centers owing to the usage of cloud computing, data analytics, and emerging technologies like IoT, AI, and machine learning are fueling industry outlook. Hyperscale data centers need high capability and modernized infrastructure to improve protection and support the critical IT equipment.

High-density networking servers in hyperscale data centers demand cooling, security management, and power solutions in order to facilitate energy-efficient operation. Major cloud service providers like Facebook Inc., Amazon, and Google LLC are making huge investments in the construction of hyperscale data center facilities.

2) Increasing adoption of data center services

The service segment is anticipated to account for a substantial market share on account of surging demand for scalable infrastructure for supporting high-end applications. Data center services such as monitoring, maintenance, consulting, and design help operators to better manage data centers and their equipment.

Enterprises often need professional, skilled, and managed service providers for the management of systems and optimization of data center infrastructure to obtain efficiencies. Professional service providers having the required technical knowledge and expertise in IT management and data center operations allow streamlining of business processes. These services help to significantly decrease the total cost of operations and maintenance of IT equipment.

3) Robust usage of cooling solutions

There is a proliferation of AI, driverless cars, and robots which are encouraging data center service providers to move strategic IT assets nearer to the network edge. These edge data centers are in turn rapidly shifting towards liquid cooling solutions to run real applications having full-featured hardware and lessen energy consumption for the high-density applications.

Key companies operating in the data center infrastructure market are Panduit Corporation, Hewlett Packard Enterprise Company, Black Box Corporation, Vertiv Group Co., ClimateWorx International, Eaton Corporation, Huawei Technologies Co., Ltd., Cisco Systems, Inc., ABB Ltd, Schneider Electric SE, Degree Controls, Inc., and Dell, Inc.


data center power

Data Center Power Market is Projected to Reach USD 15 Billion by 2026

According to a recent study from market research firm Global Market Insights, the growing deployment of IoT and cloud computing technologies across various businesses will significantly expand the data center power market share. Cisco Systems had estimated that the number of hyperscale data centers will see a rise from 338 in 2016 to 628 by 2021. It has also been found that these data centers will contribute to 53% of the total data centers across the globe.

Data center power management can be touted as a broad process that deals with the management, measurement, as well as monitoring of power generation in data centers. It also looks after the consumption and optimization of power within a data center facility. The construction of mega-facilities across different regions in the world by some of the global enterprises has added impetus to data center power consumption over the coming years.

The rising requirement for data centers and power backup has urged several firms to opt for modular data centers in order to add multiple modules. These data centers ensure that the load operates at an optimal level owing to their modular Uninterruptible Power Supply (UPS) architectures.

Furthermore, these systems are highly preferred in comparison to conventional UPS as they can be easily accessed and installed. They also offer maximum reliability and reduce the total cost of ownership. The smaller design or size of modular UPS makes it effective for use in micro and edge data center facilities that are distributed across crowded urban areas.

Data center power market distribution from colocation applications will gain significant momentum through 2026. This is due to the numerous benefits rendered by colocation providers, in conjunction with narrowing down the need for companies to establish newer facilities that can drain their vital resources like time, labor, and money. Owing to this, colocation data centers are highly preferred by several businesses that have monetary constraints and limited data storage requirements.

Furthermore, the influx of IoT and cloud services has augmented the need for data storage across large enterprises. This has pushed colocation providers to deliver enhanced services to operators in the form of power, cooling, and maintenance of the infrastructure.

Regionally, Data Center Power market in MEA is estimated to grow commendably over the forthcoming years attributing to the thriving telecommunication industry in the region. This has increased the demand for cloud computing which in turn has urged service providers to extend their IT facility across several economies in the region. As a result, various telecom operators are focusing on establishing large-scale facilities for improving their data transmission rate and meanwhile gaining a competitive edge in the market.

For instance, in 2019, renowned Palestinian telecommunication company Paltel Group announced the completion of the construction of its second data center in Ramallah which is a 65,000 square foot (6,000 sq m)-facility certified with Uptime Tier III Design. Such tremendous expansions of IT facilities will certainly instigate the adoption of intelligent power managing solutions for effective energy consumption in these facilities.

Key Companies covered in data center power market are ABB Ltd., Active POWER, Belkin International, Inc., Black Box Corporation, Caterpillar Inc., Cummins, Inc., Cyber Power Systems, Inc., Delta Electronic Inc., Eaton Corporation, Emerson Network Power, Inc., Hewlett-Packard Company, Huawei Technologies Co., Ltd., Legrand, Mitsubishi Electric Corporation, Rittal Gmbh & Co. Kg, Schneider Electric SE, Siemens AG, Toshiba Corporation, Tripp Lite, Vertiv Group Co.