Data Center Infrastructure Management Market Size, Share & Trends Analysis Report By Type (Software, Services), By Deployment Model (Colocation, On-premise), By Size of the Data Center (<5,000 Sq. Ft , 5,000-9,999 Sq. Ft , 10,000-14,999 Sq. Ft , 15,000-24,999 Sq. Ft, >25,000 Sq. Ft), By End-User (BFSI (Banking, Financial Services, and Insurance) , IT and Telecom , Retail , Healthcare , Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global data center infrastructure management market was valued at USD 3.21 billion in 2023. It is estimated to reach USD 11.56 billion by 2032, growing at a CAGR of 15.3% during the forecast period (2024–2032). In recent years, with the advent of digitization, there has been a rapid proliferation of the Internet worldwide, which has led to the deployment of new data centers or expansion of existing ones, thereby driving the demand for data center infrastructure management. Moreover, strategic initiatives undertaken by the major market players, like joint ventures, new product launches, acquisitions, etc., are estimated to present opportunities for global market growth.

Data Center Infrastructure Management is a comprehensive software and hardware solution used by data center managers and operators to efficiently monitor, manage, and optimize the infrastructure and resources within a data center facility. DCIM encompasses various tools and technologies that help organizations plan, operate, and maintain their data center environments.

Data Center Infrastructure Management solutions provide data center managers with real-time visibility into the performance and health of their infrastructure, enabling them to identify and address potential issues, optimize resource utilization, and make informed decisions to support business objectives such as cost reduction, energy efficiency, and service availability.

Highlights

• Software dominates the type segment
• Colocation dominates the deployment model segment
• IT and telecom dominate the end-user segment
• North America is the highest shareholder in the global market

Market Dynamics

Global Data Center Infrastructure Management Market Drivers:

Growing Internet Traffic

With the Internet becoming an integral part of daily life for billions of people, digital content consumption has skyrocketed. This surge in data consumption directly translates to a need for more data centers to store and process this vast amount of information. As more data centers are built or existing ones are expanded to accommodate this demand, efficient management solutions like DCIM become crucial. Cisco's research predicts that the worldwide IP traffic will increase to 396.0 exabytes per month by 2022, compared to 122 exabytes per month in 2017.

Moreover, the volume of internet traffic during the busiest hour was projected to increase about fivefold (at a CAGR of 37 percent) between 2017 and 2022, ultimately reaching a rate of 7.2 petabytes per second by 2022. By 2022, typical internet traffic was projected to increase by about fourfold, with a CAGR of 30 percent, resulting in 1 petabyte. Therefore, there will be an increased need for data centers and data center infrastructure management in the foreseeable future.

Global Data Center Infrastructure Management Market Restraint:

High Infrastructure Costs and Rising Data Breaches 

Setting up servers in data centers has proved beneficial in terms of capital expenditure and power utilization charges. Nevertheless, the rise in costs has restrained the growth of the market. This rise is mainly due to the increased need for services such as the growing commutation of the engineers for better operability, data security concerns, and challenges due to increased dependence on the data center facilities.

Additionally, the rising number of data breach incidents has hampered the growth of colocation data centers. For instance, in February 2020, the Defense Information Systems Agency of the United States announced that it suffered a data breach. In September 2019, Airbus revealed that hackers targeting commercial secrets were engaged in a series of supply chain attacks targeting four subcontractors within the company. The incidents above have played a major role in restraining the market's growth.

Global Data Center Infrastructure Management Market Opportunities:

Strategic Initiatives by the Key Players

The major market players are strategizing on initiatives like mergers and acquisitions, expansions, colorations, product launches, etc., to thrive in the highly competitive industry. For instance, in June 2023, Vertiv unveiled a thermal management optimization service, the Vertiv EnerSav, to help data center operators achieve energy savings in Asia. Vertiv EnerSav service helps operators identify cost-saving opportunities within their critical facilities by reducing energy consumption without needing a significant infrastructure overhaul. It is a low-risk, economical, and environmentally efficient service for data centers and server rooms. 

Furthermore, in July 2023, Mitsubishi Heavy Industries, Ltd. (MHI) signed a memorandum of understanding (MOU) with FNT Software GmbH (FNT). This German company offers software solutions for global IT, data center, and telecommunication infrastructure management. The objective of this partnership is to construct environmentally friendly data centers that will support the reduction of carbon emissions. According to the recently established MOU, MHI will combine its energy management technology with FNT's infrastructure management technologies to create innovative solutions. These factors present opportunities for market expansion.

Regional Analysis

North America Dominates the Global Market

Based on region, the global data center infrastructure management market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the most significant global data center infrastructure management market shareholder and is expected to expand substantially during the forecast period. North America primarily leads the DCIM market due to the prevalence of large-scale data centers, technological progress, and early acceptance of DCIM solutions. Moreover, the regional market expansion is being driven by the existence of prominent firms such as CA Technologies, Emerson Electric Co., Fieldview Solutions, International Business Machines Corporation, iTRACS Corporation, Inc., Joulex Inc., Modius, Inc., Panduit Corp., Rackwise, Inc., among others.

Moreover, the region has a strong inclination towards technology, and the number of internet users is continuously rising. For instance, according to Statista, the number of internet users in the United States is projected to steadily rise by 19.9 million people (+6.15 percent) from 2024 to 2029. Following nine straight years of growth, the expected number of users will reach 343.48 million, marking a new peak in 2029.

Furthermore, there has been an increase in funding for advancing DCIM solutions. For instance, in July 2017, McMaster University's research center in Ontario was awarded a USD 1 million grant to enhance the development of a more advanced data center infrastructure management (DCIM) system. The Computing Infrastructure Research Centre (CIRC) at the university, in collaboration with Cinnos Mission Critical Incorporated, a local modular data center company, aims to construct an exceptional monitoring system for data centers. This endeavor is being funded by a research and development grant of nearly USD 1 million from the Natural Sciences and Engineering Research Council of Canada (NSERC) and over USD 1 million in cash and kind contributions from Cinnos. Hence, all of these factors contribute to the expansion of the regional market.

The Asia-Pacific region is experiencing significant expansion due to growing investments in data centers, increased usage of cloud technology, and the digitalization process. The regional market is propelled by favorable government laws facilitating digitalization. Examples include the Digital India Campaign initiated by the Government of India and the Digital Economy Promotion Agency established by the Government of Thailand, among others. Moreover, the expansion of regional small and medium enterprises has been facilitated by government efforts like Make in India by the Government of India and government investments such as the USD 21 billion funds established in November 2019 by the Chinese government to boost manufacturing technology.

Furthermore, the Asia-Pacific region is experiencing significant growth potential, mostly driven by the consistent year-on-year increase in GDP within this region. According to the 'Economic Social Survey' published by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), the Asia-Pacific region has a greater average GDP growth than the rest of the globe. This has resulted in significant investments in many industries. These changes have stimulated the marketplaces in this region, consequently bolstering both large firms and SMEs and further driving the growth of the data center infrastructure management market.

Segmental Analysis

The global data center infrastructure management market is bifurcated into type, deployment models, size of data center, and end-users.

Based on type, the global data center infrastructure management market is bifurcated into software and services. 

The software segment dominates the global market. The software segment dominates the market primarily because of its capacity to enhance infrastructure planning and design and streamline data center operations. It is further divided into asset, network, cooling, power, and security management. The asset management sub-segment focuses on comprehensive data regarding assets, including servers, networking, and storage.

On the other hand, the cooling management segment also possesses a significant portion. According to an article released by Energy Innovation, the cooling management segment accounts for 43% of electricity consumption. Moreover, effective power management in data center infrastructure is essential for maximizing energy utilization, minimizing expenses, and guaranteeing operational effectiveness.

Based on the deployment model, the global data center infrastructure management market is bifurcated into colocation and on-premises. 

The colocation segment is anticipated to be the largest contributor to the market share. The colocation segment dominates the market due to its prominent attributes, including ample space, backup generators/battery backups, robust physical security, and effective cooling systems, among other features. Moreover, the colocation data center eliminates the need for capital expenditure by being located in a shared rental space at a third party's data center. This deployment method is primarily seen in emerging small and medium-sized enterprises (SMEs) facing storage challenges and having limited financial resources.

Based on size of data center, the global data center infrastructure management market is bifurcated into <5,000 Sq. Ft, 5,000-9,999 Sq. Ft, 10,000-14,999 Sq. Ft, 15,000-24,999 Sq. Ft, and >25,000 Sq. Ft.

A "<5,000 Sq. Ft data center" is a facility with a floor space of less than 5,000 square feet. A data center with a size of less than 5,000 square feet would generally be categorized as a small to medium-sized facility. These smaller data centers cater to the requirements of smaller enterprises, startups, or satellite offices of larger corporations. Power, cooling, security, and connectivity must still be considered to maintain the dependable functioning of the IT equipment stored within them.

Based on end-users, the global data center infrastructure management market is divided into banking, financial services, and insurance (BFSI), IT and telecom, retail, healthcare, and others. 

The IT and telecom segment owns the highest market share. Data Center Infrastructure Management (DCIM) is essential in the IT and telecom industries as it offers full supervision, optimization, and control of data center resources. DCIM solutions monitor vital resources, including power consumption, cooling infrastructure, server efficiency, and network connectivity. By examining this data, professionals in the IT and telecom industry can identify inefficiencies, enhance the allocation of resources, and guarantee the utmost performance and dependability of their infrastructure. DCIM is crucial for enhancing data center infrastructure's performance, efficiency, and dependability in the IT and telecom sectors. It allows enterprises to fulfill the increasing requirements for digital services while reducing expenses and mitigating risks.

Impact of covid-19

The pandemic has caused a lockdown in almost all the countries of the world, where social distancing has urged the need for complete work from the home implementation by the companies. As a result, data centers have come to play an important role in maintaining the IT infrastructure of the companies functional during this crisis. The emergence of new business has led to higher adoption of the network technologies to fulfill the basic requirements, thus favoring the growth of the datacentre infrastructure management market.

Recent Developments

• February 2024- KAYTUS, a prominent provider of IT infrastructure, introduced KSManage, a data center management platform that greatly enhances the intelligence and efficiency of data center operations. This platform offers comprehensive full lifecycle maintenance, precise fault diagnosis, and advanced energy management specifically designed for the dynamic environments of modern data centers.

• September 2023- Eaton introduced the Brightlayer Data Centers suite, a cutting-edge data center infrastructure management platform. It encompasses data center performance management, electrical power monitoring, and distributed IT performance management.