The global data center market size was valued at USD 192.63 billion in 2021. It is expected to reach USD 554.4 billion, growing at a CAGR of 11.15% during the forecast period (2022–2030).
A data center is a physical building within an organization built to share IT operations and equipment to store, process, and distribute data and applications. In addition, this organization comprises a network of computer applications and storage solutions designed to facilitate sharing of information and data. The transition from conventional on-premises physical servers to virtual network-based data centers is driving the expansion of data centers worldwide due to the development of multi-cloud computing.
A modern enterprise data center can communicate with many cloud-based and on-premises sites. Modern data centers may also use a public or private cloud computing solution to enhance their operations and storage beyond physical infrastructure. Furthermore, remote servers can be used in virtualized data centers to handle heavy workload tasks.
The point that more and more businesses are migrating to the cloud is one of the key growth factors of the data center market. More workers are working remotely, and relying on the Internet and IoT technology to send and receive data from their homes to their main offices is another significant growth factor. The market for data centers is anticipated to expand significantly over the forecast period due to the high complexity of data centers brought on by scalability. As more people use the cloud, more data will be generated, increasing the need for data processing and storage. Also, the expansion of the data center market during the forecast period is fueled by the increasing adoption of high-end cloud computing by organizations in developing economies.
Rapid internet usage in rural areas has resulted from the availability of bandwidth, cost-effective data plans, and heightened awareness. The most important considerations for internet penetration are proximity to fiber-landing stations and an uninterrupted and dependable power supply. In recent years, however, the reliability of electricity has improved, particularly in significant states. The local government is aware of the importance of the data center industry expansion, its effects on the economy, and potential investments. As a result, it encourages the construction of data centers, including the availability of alternative sites with ample power supplies and the use of renewable energy.
IT-BPM (Information technology-business process management) was established globally due to an expanding economy, highly skilled resources, low-cost computer software and hardware, and a reasonable government effort. Information technology services are being implemented in all industries, including telecommunications, entertainment, banking, manufacturing, and healthcare, and are reshaping global business standards. These services include software development and management, consultancies, online services, and business process outsourcing. Indirectly, COVID-19 had an impact on the market for data centers as well as the growth of IT services.
Private data must be kept secure, yet the perception of overall data protection instantly disappears if a serious data breach or security issue happens. Numerous security lapses on widely used platforms have recently raised these concerns. Privacy is gaining prominence. One of the essential questions is determining what else people are searching for concurrently. Users are beginning to inquire more frequently about rules governing the transmission of personal information and its protection. Escalating data privacy concerns and expanding demand for managed services are anticipated to hinder market expansion.
The data center industry has its limitations, even if it may be a place where businesses can make a lot of money and offer tremendous future possibilities for making money. When companies first enter the market, they require a sizable amount of funding to invest in data centers.
Energy-hungry HCI (hyper-converged infrastructure) hardware necessitates energy management solutions to save running costs. To energy-efficient solutions and devices would be an attractive alternative for HCI providers. Consequently, demand for energy-efficient products and accessories will increase.
Also, increasing numbers of businesses are attracted to communal cloud technologies. The data center is being adopted at a dizzying pace and offers numerous lucrative opportunities for major and minor players in the data center market. Data centers that can transport, retrieve, store, and back up information in increasingly innovative and modern methods are needed by individuals and companies. The market for data center is expected to see attractive development possibilities due to the rising usage of hybrid and multi-cloud architectural solutions and the Internet of Things.
The global data center market is segmented into type, component, and end user.
Based on components, the global market is divided into servers, routers, and storage systems.
Data center solutions are the items and services required for constructing and maintaining a data center. Products include servers, routers, storage systems, firewalls, and data center infrastructures such as cooling systems, batteries, generators, and cabling. Technical help, installation, and configuration are included in the services. A corporation might use its own data centers or share a piece of a data center with other tenants, depending on its needs and size. As a result, data center solutions might range from planning and building a brand-new, custom data center to installing and maintaining specific racks inside a data center.
The term "data center services" refers to all the supporting components required for the effective operation of a data center. This involves the design, construction, and operation of a data center. Consequently, data center services may include hardware, software, processes, and staff. IT firms rely on data center services for data backup and recovery, networking, website hosting, and management.
Based on type, the global market is classified into colocation, hyperscale, and edge
Colocation facilities protect data, systems continuity, applications, and scalability. Additionally, clients can access the most cutting-edge data center technologies by removing the need to construct, maintain, and manage internal server rooms or data centers, allowing them to concentrate on their businesses. Massive business-critical data centers intended to efficiently handle robust, scalable applications commonly link with big data-generating corporations like Google, Amazon, Facebook, IBM, and Microsoft. Edge data centers are more petite, geographically dispersed facilities that provide cloud computing capabilities and cached material to end-users. Typically, they connect to a centralized data center or numerous data centers.
Based on end-user, the global market is classified into BFSI, IT and telecom, government, and energy and utilities.
The IT and telecom sector is anticipated to dominate the data center market. Media & entertainment, retail (eCommerce), and manufacturing are the following significant verticals with the highest data center demand.
The global data center market is primarily classified into North America, Europe, and Asia-Pacific.
In North America, there is the most significant need for data centers. One is that many individuals and organizations adapt and utilize community cloud technologies and capabilities.
North America has the most significant market share of any area for data center infrastructure. The most important demand for data centers is in North America, which is why many people and businesses have adapted to and use community cloud technologies and capabilities.
More and more businesses are investing extensively in technologies that will help them become even more productive in the future. Remember that increased productivity ultimately results in increased revenue and income for the companies concerned. Additionally, North America is home to some of the world's best, most efficient, and most advanced technical and technological infrastructure. North America is also home to most companies that manufacture data centers. This significantly contributes to the region's high growth and market share. American enterprises are the most productive globally is another crucial element driving growth and demand in the data centers industry. This suggests that they have sizable cash reserves required for the enormous research and development expenditures necessary to create the next generation of data centers that are more technologically sophisticated and effective in data and information management.
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