Data Centre Market Research Report - Global Forecast to 2027

Global Data Center Market, By Type (Corporate data centers, Web hosting data centers), Density (Low, Medium, High, Extreme), and Verticals (Banking & Financial Services, Telecom & IT, Government, Healthcare) – Forecast to 2027

ID: MRFR/ICT/3299-HCR | February 2021 | Region: Global | 100 pages

Market overview


The CAGR for the data center market is projected to be 11% from the years between 2017 and 2023. A data center is a physical infrastructure that small, medium and large companies use to back their data up information and data. Since most of these companies have a lot of information and data to back up, they need more than one data center to do the job.


These data centers themselves require many components and accessories to do a good job in terms of backing up data. These include switches, units that distribute and provide a continuous supply of power, ventilation areas, and the ability to connect to the World Wide Web (WWW.) Most companies use these data centers to manage and monitor the software that lets IT administrators do their jobs in terms of managing the IT department and the work that its employees do well.


COVID-19 analysis


The data center market is growing at a respectable to fast pace. What’s fueling this growth is the increasing prevalence of people who work remotely thanks to COVID-19. Data centers are doing a great and important job of managing and organizing data. They are also making sure that employees have constant access to the data that they store.


COVID-19 has permanently changed the way in which businesses are organized and operate. Most businesses are moving towards having mainly digital infrastructure. They find that this is cost-effective and boosts worker productivity. Also, most companies are using the cloud to store data and information. This is combined with more data travelling across the net. Both factors are contributing to the strong and growing demand for data centers.


Market dynamics


Drivers


One of the main drivers of growth in the data center market is the fact that more and more companies are on the cloud. The other major driver of growth is the fact that more workers are working remotely and need to rely on the Internet and IoT technologies to send and receive information from their homes to their main offices.


Opportunities


More and more companies are becoming enticed by community cloud technology. They are adopting this at breakneck speed. This is creating a lot of opportunities for the major and minor players to make a lot of money in the data center market. This is because people and companies need more advanced and innovative data centers that can do the job of sending, retrieving, storing, and backing up information in more efficient and innovative ways.


Restraints


the data center market may well be a place where companies can make a lot of money and it may also have great opportunities for making money in the future, but it has its drawbacks as well. The main drawback is that companies have to have a lot of money to invest in making data centers when they first enter the market.


Challenges


Perhaps the biggest challenge facing the data center market lies in keeping costs of producing data centers down in terms of continuing research and development while continuing to sell them at price points that most companies - even small ones - can afford.


Cumulative growth analysis


The data center market CAGR for the years between 2017 and 2023 is expected to be 11%.


Technology analysis


Hewlett Packard is a major American player in the data center market. It continues to retain its superior position by investing heavily in research and development. This has allowed it to come up with the next generation of data centers that do a much better job of sending, retrieving, storing, and backing data and mission-critical information for companies of all sizes and types!


Segment overview


By type


This segment of data center market can be further broken down into corporate data centers and web hosting data centers.


In the type segment, the corporate data center subsegment is expected to hold the lion’s share of the entire data center market for the years spanning 2017 to 2023. This is largely attributed to the fact that many big companies need affordable data centers that are capable of sending, retrieving, storing, and backing up large quantities of information and data.


By density


The data center market can be divided into the following segments based on density:



  1. Low

  2. Medium

  3. High

  4. Extreme


By vertical


Companies in many industries rely heavily on data centers to manage their daily information and data loads. Some of these industries are banking and financial services, telecommunications, Information Technology, government, healthcare, and others!


Regional analysis


The main world regions for the data center market are North America, The European Union, and the Asia-Pacific region. Demand for data centers is greatest in North America. There are a few reasons for this. One is that more and more people and companies are embracing and using community cloud technologies and capabilities. The realities of COVID-19 necessitated this.


There are two dominant nations in the North American region. These are the United States of America and Canada. The North American region also has the largest market share in the data center market of all of the regions in the world.


Another key reason why growth in demand and size of data center market share is largest in the North American region is that more and more companies are investing heavily in the technologies that will help make them even more productive in the future. Remember that more productivity eventually translates into more revenue and money for the companies involved.


The North American region is also home to some of the best, most efficient, and advanced technical and technological infrastructure in the world. This makes implementing the new generation of data centers a quick and easy task. The North American region is also home to most of the companies that make data centers. This is a major factor that attributes to the high growth and market share in this region. Another key factor that is fueling growth and demand for data centers market is the fact that American companies are the most productive in the world. They are also some of the richest companies in the world. This means that they have large treasuries that they can draw upon to find the huge monetary resources needed for the large investments in research and development that are needed to produce the next generation of data centers that are more technologically advanced and more efficient in terms of managing data and information in general.


Competitive landscape


The data center market remains highly competitive and fragmented. The reason for this is that there are many companies out there around the world that can make high-quality data centers that can manage data very efficiently. Many new small, medium and large companies are entering the market. They are largely driven by its high growth rate and the fact that there is big money to be made in this market because even the most affordable data centers are still relatively pricey!


Companies are finding that they must draw upon their vast financial reserves to do the heavy and involved research and development that will allow them to make even more money and capture an even bigger market share in the future. They can do this by developing a new generation of data centers that does a much better job at managing and protecting data from hackers and possible computer/physical infrastructure glitches.


 


Many companies are finding that strategic partnerships are vital if they want to survive in both the short and long-term in the hypercompetitive data center market. Another name for strategic partnerships is a joint venture. When companies join forces and operate as a large entity that consists of a group of independent companies, they have more financial and human resources that they can draw upon. This will allow them to do the research and development needed to build the next generation of data centers that companies and the general public want because of their greater efficiency and superior ability to back up large amounts of data and information quickly.


 


Other companies are finding that they can have access to more monetary and human resources by merging with or acquiring other companies. They increase their treasuries. This allows them to have access to more of the funds needed to invest heavily in research and development.


 


Companies that enter into strategic partnerships and those that enter into strategic mergers and acquisitions find themselves better able to enter into new markets on a strong footing. They can also solidify their existing positions in existing markets.


 


Hewlett Packard is a major American company. It continues to be an industry leader because it invests heavily in the research and development that will allow it to produce the next generation of more efficient and more effective data centers.


 


List of companies



  • Digital reality trust - USA

  • IBM Corporation - USA

  • Hitachi Limited - Japan

  • Cisco Systems - USA

  • Hewlett-Packard Inc, - the USA

  • EMC Corporation - USA

  • CyrusOne - USA

  • Global Switch - United Kingdom

  • Dupont Fabros Technology - USA

  • Telehouse - United Kingdom


 


Recent developments



  • Digital Realty Trust is succeeding by building a new generation of data centers


 


Report overview


The CAGR for the data center market is 11%. What is largely driving growth in this market is the fact that corporations are starting to embrace working remotely and community cloud technology



Report Scope:
Report Attribute/Metric Details
  Market Size   2027: Significant Value
  CAGR   11% (2017-2023)
  Base Year   2019
  Forecast Period   2020-2027
  Historical Data   2018
  Forecast Units    Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   By Type, Density
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Digital Realty Trust, Inc. (U.S), IBM Corporation (U.S), Hitachi Ltd (Japan), Cisco System, Inc. (U.S), Hewlett-Packard Inc. (U.S), EMC Corporation(U.S), CyrusOne (U.S), Global Switch (U.K), DuPont Fabros Technology(U.S) and Telehouse (U.K).
  Key Market Opportunities

  • Increasing demand for data storage management and cloud technology are major factors driving the growth of the global data center market. However, high initial cost of investment may hinder the market growth over the review period. \r\n
  • The gaining popularity of the community cloud technology is expected to create lucrative opportunities for the market.
  •   Key Market Drivers   The North American market growth is attributed to rising investments in data centers and gaining importance of community cloud systems.


    Frequently Asked Questions (FAQ) :


    The global data center market is poised to account for a substantial value of revenue by 2024, expanding at a considerable CAGR of 11% over the review period (2017-2023).

    The major market players operating in the global data center market include IBM Corporation (U.S), Digital Realty Trust, Inc. (U.S), Hitachi Ltd (Japan), Cisco System, Inc. (the U.S), EMC Corporation(U.S), Hewlett-Packard Inc. (U.S), CyrusOne (U.S), DuPont Fabros Technology(U.S), Global Switch (U.K), and Telehouse (U.K).

    The global data center market segmentation is conducted based on the type, density, and vertical. The corporate data centers and web hosting data centers are the types of data centers accessible in the global data centers market. The density segment of the global data center market comprises of low, high, medium, and extreme. The industry verticals where data centers are operative are telecommunications and IT, banking & financial services, healthcare, government, and others.

    The regional analysis of the global data center market is conducted in four major regions, including the Asia Pacific, North America, Europe, and the rest of the world (covering the Middle East and Africa, and Latin America).

    The North American region in the global data center market is expected to lead the market share over the review period, where the U.S. is the leading contributor. The market is followed closely by the Asia Pacific, with China, India, and Japan account for the most profitable countries for data centers in the Asia Pacific.

    Hewlett Packard is a major American player in the data center market. It continues to retain its superior position by investing heavily in research and development. This has allowed it to come up with the next generation of data centers that do a much better job of sending, retrieving, storing, and backing data and mission-critical information for companies of all sizes and types!

    These data centers themselves require many components and accessories to do a good job in terms of backing up data. These include switches, units that distribute and provide a continuous supply of power, ventilation areas, and the ability to connect to the World Wide Web (WWW.)