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The commonness of advanced change is apparent as associations in all areas quickly take on distributed computing, portable stages, and the IoT, which enormously expands the requirement for tough information stockpiling and handling. Except for internet banking and web-based features, each snap, output, and sensor perusing produce information that requires a protected and trustworthy climate. The data center market is encountering huge development because of the computerized change flood, which has started a contest for server space and high-level framework. The times of on-premises servers possessing soiled office corners are a distant memory. Enormous partnerships, global endeavours, and little endeavours the same are progressively taking on cloud arrangements because of their expense viability, adaptability, and adaptability.
The flood in cloud relocation animates the requirement for hyperscale server farms, which are huge foundations that house the servers that give capacity to the cloud endeavours. Google, Amazon, and Microsoft, all of which are market leaders in the cloud industry, construct massive server fortifications all over the world. Every two years, the data production doubles. This is an exponential rate. Computerized impressions, including on the web exchanges as well as virtual entertainment postings, produce a broad corpus of information. Because of the expanded stockpiling and handling power expected to oblige this information immersion, server farms are growing. Areas like money, medical services, and media, which oversee significant volumes of arranged information, make significant interests in data center framework. Mechanical headways essentially impact the setup of server farms. The execution of fringe processing, AI (ML), and computerized reasoning (simulated intelligence) creates new necessities for particular server farm arrangements.
For instance, AI-powered applications require connections with a high bandwidth and low latency, which necessitates data centers in close proximity to users. These innovative improvements force the server farm industry to stay coordinated and responsive. As misgivings in regard to the natural outcomes of server farms increment, energy effectiveness is arising as a principal concern. Green server farms are turning out to be progressively well known as they utilize state of the art cooling innovations and sustainable power sources. Also, state run administrations are upholding more rigid energy utilization guidelines, which constrains server farm administrators to embrace feasible practices. The progress towards ecologically manageable data centers presents novel market possibilities for green advances and arrangements. The scene of the worldwide data center market is not uniform.
Data centers are bound to be situated in districts that have solid framework, a capable workforce, and worthwhile authority strategies. Albeit North America and Europe keep on being huge areas data center action is expanding in developing business sectors like Asia and Latin America. Populace development, rising web entrance, and government drives that offer help all add to the expanded consideration given to these locales with regards to data centers.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Size Value In 2022 | USD 208.44 Billion |
| Growth Rate | 12.29% (2022-2030) |
Data Centre Market Highlights:
Data Center Market Overview
Data Center Market Size was valued at USD 169.42 Billion in 2021. The Data Center industry is projected to grow from USD 208.44 Billion in 2022 to USD 520.41 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 12.29% during the forecast period (2022 - 2030). 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 markets 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.
Figure 1:Â Data Center Market Size, 2022-2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Data Center Market Trends
- Rising Demand Among SMEs
The market is divided into big and small & medium-sized businesses. Due to the growing integration of cutting-edge business technologies such as big data and data analytics, which affects their requirement for the storage of massive amounts of data being created every day, the large enterprise category retains the largest share of the market. Because of this, international firms frequently choose corporate data centers with high levels of data security, which is a key reason for the growth of this market.
- Increasing Adoption of Advanced Technologies is Supporting the Market Growth
The adoption of cutting-edge such as AI, machine learning, and big data, along with the growing penetration of data-generating devices such as wearables, smartphones, IoT sensors, and remote patient monitoring devices, is significantly accelerating the growth of the market. Businesses are using data analysis tools to analyze and manage massive amounts of data that may provide insights and trends about their business performance, industry trends, and client preferences, which are likely to propel market growth.
Data Center Market Segment Insights
Data Center Type Insights
The market segmentation, based on Type, includes Corporate data centers and Web hosting data centers. The corporate data centers segment holds the majority share in 2021 of the market. 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.
Data Center Density Insights
Based on Density, the market segmentation includes Low, Medium, High, and Extreme. The High segment is accounted for the largest share of the market. Each cabinet in a high-density data center uses more than 10 kW of power. The quantity of energy used per square foot of floor area is another way to define data center density.
Data Center Vertical Insights
Based on Vertical, the market segmentation includes Banking & Financial Services, Telecom & IT, Government, and Healthcare. The Banking & Financial Services segment dominated the market in 2021. Due to the increased reliance on internet banking, as well as the increasing use of mobile wallets and online payment services. Additionally, the BFSI sector's requirement to maintain operations around-the-clock to maintain trade and economic activity is a major factor driving the expansion of the data center industry.
Figure 2: Data Center Market, by Vertical, 2021 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Data Center Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North America dominates the data center market. The North American region is also home to some of the best, most efficient, and most 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 the 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.
Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: DATA CENTER MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Data Center Key Market Players & Competitive Insights
The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth. With significant market development such as new product releases, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Data Center industry must offer affordable products.
Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the Data Center industry to benefit customers and expand the market sector. Major market players, including Alphabet Inc, IBM Corporation, Hitachi Ltd, Cisco System Inc, Hewlett-Packard Inc, and others, are attempting to increase market demand by funding R&D initiatives.
Alphabet is a holding corporation for Google and its subsidiaries. It works in two divisions: Google Services and Google Cloud. Ads, Android, Chrome, hardware, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube are all part of the Google Services section. Google Cloud offers enterprise-ready cloud services such as Google Cloud Platform and Google Workspace. Developers may build, test, and deploy apps using Google Cloud Platform's infrastructure. Gmail, Docs, Drive, Calendar, Meet, and other Google Workspace collaboration features are available.
IBM (International Business Machines) is a firm that sells and services information technology. It provides solutions for automation, data and artificial intelligence (AI), infrastructure, security, and sustainability, such as enterprise content management, data management, business analytics, decision management, cloud hosting, cloud security, data security, asset management, and so on. The company serves banking, automotive, energy, insurance, manufacturing, life science, retail, and various other industries.
Key Companies in the Data Center market include
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Alphabet Inc.
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IBM Corporation
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DuPont Fabros Technology
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Hitachi Ltd
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NTT Communications Corporation
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Cisco System Inc
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CyrusOne
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Hewlett-Packard Inc
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EMC Corporation
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Seagate Technology Holdings
Data Center Industry Development
In April 2022, Seagate Technology Holdings and Phison Electronics Corporation announced an expansion of their solid-state drive (SSD) portfolio, to assist data management centers in reducing their total cost ownership (TCO). This new focus comes from a growing demand of businesses for higher-density and faster, more-intelligent storage infrastructure to work alongside hybrid hard drive (HHD) storage, to facilitate comprehensive business applications, such as hyper-scale data centers, high-performance computing, and AI.
In June 2021, NTT Communications Corporation announced the launch of Data Center Interconnect (GDCI), which is an integrated network fabric service. It delivers private and secure connections between NTT’s data centers and major cloud service providers.
Data Center Market Segmentation
Data Center Type Outlook
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Corporate data centers
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Web hosting data centers
Data Center Density Outlook
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Low
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Medium
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High
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Extreme
Data Center Vertical Outlook
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Banking & Financial Services
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Telecom & IT
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Government
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Healthcare
Data Center Regional Outlook
- North America
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- US
- Canada
- Europe
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- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
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- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
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Middle East
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Africa
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Latin America
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