Global Data Center Market is forecast to reach $32.2 billionby 2025, growing at a CAGR of 13.5%during the forecast period from 2020 to 2025. The Data Center Market is driven primarily by the factors such as increasing structured as well as unstructured data in the market due to fast growing businesses and industries across the globe. Rising growth of advanced technologies such as IoT, AI and many others along with providing increased work productivity across different industries have been acting as major growth factors in the data center market. Moreover, growing investments from various sectors towards infrastructure development of data centers are also booming the market growth of data centers.
The report: “Data Center Market – Forecast (2020-2025)”, by IndustryARC covers an in-depth analysis of the following segments of the Data Center Market.
By Provider Type: Enterprise, Colocation providers, cloud service providers
By Data center Size: Small and Mid size data center & Large data center
By Tier Standards: Tier1, Tier 2, Tier 3,Tier 4
By End Users: Banking and financial services (BFSI), IT & Telecom, Healthcare, Government, Media & Entertainment and Others
By Services: Maintenance & Support, Consulting and System integration
By Geography:North America (U.S, Canada and Mexico), South America (Brazil, Argentina and Rest of South America), Europe (U.K, Germany, France, Italy, Spain,Netherlands and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea,Australia and Rest of Asia-Pacific),RoW (Middle East and Africa)
- Cloud service providers are expected to have a major share during the forecast period 2020-2025 owing to growing adoption of cloud based technologies across leading industry verticals.
- APAC is expected to have a major growth during the forecast period prior its higher spending towards data center infrastructure from leading cloud service provider companies.
- With large industries facing problems for storing their massive amounts of data, deployments on data centers can help them majorly in successfully managing sensitive company information systematically.
- With rising technological growth in data centers and their capability of providing optimized work productivity are some of the major driving factors accounting towards significant market growth of data centers.
Provider Type - Segment Analysis
With the increasing demand of cloud based technology in demanding applications, the cloud service provider is expected to have a major share during the forecast period in the data center market. Rising developments towards data center market have been causing major demands from various industry verticals due to providing highly efficient data management system. Cloud service providers basically help the data centers in hosting data and application through cloud solutions which makes data center applications more flexible and reliable Cloud service providers offers better data management process due to use of cloud based solutions, and provides use and pay options which saves the data centers to spend extra amounts unlike on premise data storage thus promoting its market growth. Moreover, higher investments towards building advanced technology based data centers are also promoting the market growth of cloud hosted data center.
Geography - Segment Analysis
Asia Pacific is expected to have a major growth in the global Data Center market during the forecast period from 2020 to 2025. Huge investments towards development of data centres from cloud service provider companies along with increasing growth of IT industry have been causing significant market growth in this region. Moreover, rising growth of cloud computing, AI, IoT and many such advanced technologies are also promoting the data center market growth.
Drivers – Data Center Market
- Increases work productivity
Increasing productivity of various industries has been acting as a major driver towards the significant growth of data center market. With technological advancements in the field of data management solutions with cloud, IoT and many others major industry verticals have been creating higher dominance towards data center market for effective management of their organizational data. Moreover, increasing workloads have been causing companies to incur high investments towards data center development for improving their productivity. Data center helps the end users in effectively storage, processing as well as of large amounts of data and reduces the risk of data losses to a higher extent. With 24/7monitoring and management, data centers are getting high demands across industry verticals to improve their data maintenance standards. Higher work productivity with the help of data center deployments also helps in reducing the costs associated with maintenance of in house servers, thus significantly boosting the data center market.
- Rising technological advancements
With rapid technological growth, there is rise of structured as well as unstructured data in the market. Large enterprises as well as small scale businesses both require a flexible data management system to store their huge amounts of data securely. Rising technological advancements such as adoption of cloud, IoT and many others are significantly contributing towards higher growth of data center market. Moreover, rapid adoption of such advanced technologies for creating a reliable and comparatively more cost efficient data storage management has been helping the mid size industries to invest in data centers, impacting its market growth. With the compilation of cloud technology, IoT and many others, data storing becomes more effective due to availability of more storage space compared to traditional data storage systems, which creates higher deployment for data centers by various industriesSuch technology growth in data centers is leading to higher dependency of organizations, thus boosting its market growth.
Challenges – Data Center Market
- Higher investments
With the help of data center, data storage and management has become more smooth and efficient. Since, its major use in demanding applications, they have been gaining much popularity in the market across various industry verticals. High initial investments required for data center development is a major factor hampering its market growth. Since building a highly advanced data center infrastructure can incur high costs, the data center market gets slower adoption from small and mid size businesses. Moreover, data center maintenance can also lead to higher costs which ultimately reduce the development of data center market.
Partnerships and acquisitions along with product launches are the key strategies of the players in the Data Center Market. The major key players in the Data Center Market include IBM Corporation,Google, Microsoft Corporation, Cisco Systems Inc., Equinix Inc.,CyrusOneInc., Digital Realty Trust Inc.,CtrlS,Cyxtera Technologies,Hewlett-Packardand NTT Communications.
- In December 2019, Yotta Infrastructure had announced of building the largest data center in India. With the help of Yotta NM1, one of the data center building the company will be forming a data center park which will provide overall capacity of 30,000 racks with 210 MW power. This development of Yotta data centerpark will offer unlimited scalability of collocation space and power for business enterprises as well as hyper scale cloud operators towards better operation management of cloud clusters.
- In March 2019, Microsoft announced the opening of datacenter in Africa with Microsoft Azure general availability. This development of first enterprise grade datacenter helped the region to become first global provider to deliver cloud services from data centers. This will further act as an investment towards enabling digital transformation along with advanced technologies such as cloud, edge computing and artificial intelligence across Africa region.