Data Center Market

Global Data Center Market Research Report: By Infrastructure (IT Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Support Infrastructure, and Others), By Data Center Type (Colocation, Hyperscale, Edge, and Others), By Enterprise Size (Large Enterprises and Medium & Small Enterprises), By End-User Industry (BFSI, IT & Telecommunication, Government, Healthcare, Retail, Manufacturing, and Others), and Region (North America, Europe, Asia-Pacific, and Rest of the World) Global Industry Analysis, Size, Share, Growth, Trends, Regional Analysis, Competitor Analysis, and Forecast 2023-2031.

ICT & Media | September 2023 | Report ID: EMR0090 | Pages: 217

The Global Data Center Market size was USD 275.58 billion in 2022, and is expected to reach approximately USD 515.23 billion by 2031, growing at a CAGR of 7.2% from 2023 to 2031. Data centers are specialized facilities designed to house computer systems, storage, and telecommunications infrastructure. Their primary function is to ensure uninterrupted operations for critical applications and services. This is achieved through the implementation of redundant power supplies, environmental controls, and comprehensive security measures. Data centers play a vital role for organizations by providing a centralized location to store, process, and manage large volumes of data while enabling access for users and applications. With the rapid growth of cloud computing and big data analytics, data centers have become essential components of modern IT infrastructure. They serve as the backbone for a wide range of digital services and online businesses, supporting their smooth and reliable operation.

 

 

DATA CENTER MARKET: REPORT SCOPE & SEGMENTATION

Report Attribute

Details

Estimated Market Value (2022)

275.58 Bn

Projected Market Value (2031)

515.23 Bn

Base Year

2022

Forecast Years

2023 - 2031

Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- By Infrastructure, By Data Center Type, By Enterprise Size, By End-User Industry, & Region

Segments Covered

By Infrastructure, By Data Center Type, By Enterprise Size, By End-User Industry, & Region

Forecast Units

Value (USD Billion or Million), and Volume (Units)

Quantitative Units

Revenue in USD million/billion and CAGR from 2023 to 2031

Regions Covered

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World

Countries Covered

U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others

Report Coverage

Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.

Delivery Format

Delivered as an attached PDF and Excel through email, according to the purchase option.

 

Global Data Center Market Dynamics

The data center market is witnessing rapid growth due to several factors. The increasing demand for cloud computing services, advancements in big data analytics, and the proliferation of the internet of things (IoT) are key drivers behind this expansion. Businesses recognize the importance of efficient data management and storage solutions in today's digital landscape, leading to a surge in demand for data centers. Furthermore, the adoption of virtualization and software-defined infrastructure, along with the emphasis on data security and compliance, are contributing to the market's growth. The emergence of edge computing and hybrid cloud architectures is also shaping the data center landscape, providing more flexibility and scalability to meet evolving business needs.

Global Data Center Market Drivers

  • Growing Demand for Cloud Computing Services

The growing demand for cloud computing services is driving the need for data centers. Businesses and organizations are increasingly relying on cloud computing to store, process, and access data, leading to an increased requirement for robust data center infrastructure. Cloud computing offers scalability, flexibility, and cost-effectiveness, making it a preferred choice for many enterprises. This surge in demand for cloud services is a key driver behind the growth of the data center market.

  • Rise of Big Data Analytics and IoT

Restraints:

  • High Capital Investment

High capital investment is a significant restraint in the data center market. Establishing and maintaining data centers require substantial upfront financial resources. The costs include building infrastructure, purchasing equipment, implementing security measures, and ensuring redundancy for uninterrupted operations. The capital investment can act as a barrier to entry for some organizations, limiting their ability to establish or expand data center facilities. The need for substantial financial resources is a challenge that potential investors and businesses face in the data center industry.

  • Limited Physical Space and Scalability

Opportunities:

  • Rising Demand for Edge Computing

The rising demand for edge computing presents an opportunity in the data center market. Edge computing involves processing data closer to the source, reducing latency, and improving real-time decision-making. This trend creates a need for smaller, distributed data centers located in close proximity to end users and connected devices. Edge computing enables faster and more efficient data processing for applications such as IoT, autonomous vehicles, and smart cities. Data center providers can tap into this demand by offering edge computing infrastructure and services.

  • Hybrid Cloud Adoption

Segment Overview

By Infrastructure

The global data center market is divided into several segments based on infrastructure, including IT infrastructure, electrical infrastructure, mechanical infrastructure, support infrastructure, and others. Among these segments, the IT infrastructure segment holds the largest market share, accounting for approximately 35.2% of the revenue in 2022. The dominance of the IT infrastructure segment can be attributed to the increasing demand for high-performance computing, big data analytics, and artificial intelligence (AI) applications. These advanced technologies require robust and scalable IT infrastructure solutions, including servers, storage systems, and networking hardware. As businesses strive to leverage the power of data and AI, the need for reliable and efficient IT infrastructure becomes paramount.

By Data Center Type

Based on the data center type, the global data center market is segmented into colocation, hyper-scale, edge, and others. The hyper-scale segment is dominating the market with the largest revenue share of around 42.7% in 2022, due to increased demand for cloud-based services and the widespread use of technologies such as big data analytics, artificial intelligence (AI), and machine learning, which need vast quantities of computer power and storage space. Hyper-scale data centers are designed to satisfy the requirements of these new technologies by providing a highly scalable, adaptable, and cost-effective infrastructure.

 

By End-Use Industry

Based on the end-use industry, the global data center market is segmented into BFSI, IT & telecommunication, government, healthcare, retail, manufacturing, and others. In 2022, the IT & telecommunication category emerged as the dominant segment in the data center market, capturing the largest market share with around 24.8%. This is because the sector makes considerable use of data center infrastructure to serve a wide range of applications and services, such as cloud computing, big data analytics, and Internet of Things (IoT) devices. The industry demands a strong and scalable infrastructure to accommodate the fast expansion of data and the growing demand for high-speed connections.

 

Global Data Center Market Overview by Region

By Region, the global Data Center Market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America emerged as the largest market, capturing a significant share of approximately 42.5% in 2022, due to several key factors. The region boasts a concentration of major technological businesses and cloud service providers such as Amazon, Google, and Microsoft, who have a substantial demand for large-scale data center equipment to support their operations. The well-established telecommunications and IT infrastructure in North America, along with its excellent research and development capabilities and solid regulatory framework, further contribute to the growth of the data center market.

 

 

Global Data Center Market Competitive Landscape

In the competitive landscape of the global data center market, a small number of prominent players hold significant market dominance and have established a strong regional presence. These key participants are deeply committed to ongoing research and development initiatives to drive innovation and stay ahead in the market. Additionally, they actively engage in strategic growth endeavors, including product development, product launches, joint ventures, and partnerships. By pursuing these strategies, these companies aim to strengthen their market position and expand their customer base, capturing a substantial share of the market.

Several renowned players dominate the global data center market, including Amazon Web Services, Microsoft Corporation, Google LLC, IBM Corporation, Equinix, Inc., Digital Realty Trust, Inc., NTT Communications Corporation, Cisco Systems, Inc., Hewlett Packard Enterprise Development LP, Dell Technologies Inc., Oracle Corporation, Intel Corporation, Fujitsu Ltd., Schneider Electric SE, and various other key players. These companies leverage their expertise and resources to deliver innovative data center solutions, cater to diverse customer needs, and maintain a competitive edge in the market.

Global Data Center Market Recent Developments

In April 2022, Phison Electronics Corp., a global leader in NAND flash controller and storage solutions, and Seagate Technology Holdings PLC, a leading provider of mass-data storage infrastructure solutions, announced plans to expand their portfolio of high-density enterprise NVMe SSDs. These new SSDs will help organizations reduce their total cost of ownership by boosting storage density, lowering power consumption, and offering greater performance.

Scope of the Global Data Center Market Report

Data Center Market Report Segmentation

ATTRIBUTE

DETAILS

By Infrastructure

  • IT Infrastructure
  • Electrical Infrastructure
  • Mechanical Infrastructure
  • Support Infrastructure
  • Others

 

By Data Center Type

  • Colocation
  • Hyperscale
  • Edge
  • Others

 

By Enterprises Size

  • Large Enterprises
  • Medium & Small Enterprises

 

By End-Use Industry

  • BFSI
  • IT & Telecommunication
  • Government
  • Healthcare
  • Retail
  • Manufacturing
  • Others

By Geography

  • North America (USA, and Canada)
  • Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe)
  • Asia Pacific (Japan, China, India, Australia, Southeast Asia and Rest of Asia Pacific)
  • Latin America (Brazil, Mexico, and Rest of Latin America)
  • Middle East & Africa (South Africa, GCC, and Rest of Middle East & Africa)

Customization Scope

  • Available upon request

Pricing

  • Available upon request

 

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

  • Global Data Center Market Size and Forecast:

To identify and estimate the market size for the global data center market segmented by infrastructure, by data center type, by enterprise size, by end-user industry, region, and by value (in U.S. dollars). Also, to understand the consumption/ demand created by consumers of Data Center between 2019 and 2031.

  • Market Landscape and Trends:

To identify and infer the drivers, restraints, opportunities, and challenges for the global data center market

  • Market Influencing Factors:

To find out the factors which are affecting the sales of data center among consumers

  • Impact of COVID-19:

To identify and understand the various factors involved in the global data center market affected by the pandemic

  • Company Profiling:

To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

Intended Audience

  • Data Center Manufacturers
  • Raw Material Suppliers
  • Retailers, Wholesalers, and Distributors
  • Governments, Associations, and Industrial Bodies
  • Investors and Trade Experts

Research Methodology

Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region.  The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.

Data Collection

Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.

Primary Research

After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market. 

Secondary Research

A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.

Top-Down Approach & Bottom-Up Approach

In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.

In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.

This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.

Market Analysis & size Estimation

Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.

Quality Checking & Final Review

The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.

Frequently Asked Questions

The global data center market forecast period is 2023 - 2031
According to data center market research, the market is expected to grow at a CAGR of ~7.2% over the coming years.
Asia-Pacific is expected to register the highest CAGR during 2023 - 2031
North America held the largest share in 2022
The key companies operating in the global data center market include Amazon Web Services, Microsoft Corporation, Google LLC, IBM Corporation, Equinix, Inc., Digital Realty Trust, Inc., NTT Communications Corporation, Cisco Systems, Inc., Hewlett Packard Enterprise Development LP, Dell Technologies Inc., Oracle Corporation, Intel Corporation, Fujitsu Ltd., Schneider Electric SE, and others.