Hyperscale Data Center Market Research Report- Global Forecast 2027

Global Hyper Scale Data Centers Market, By Solution (Storage, Server, Software) By Type (Cloud Providers, Enterprises), By Vertical (BFSI, Healthcare, IT & Telecommunication) - Forecast 2027

ID: MRFR/ICT/2233-HCR | February 2021 | Region: Global | 100 pages

Market scenario

Hyperscale can be defined as the best possible distribution of huge Data in an environment to get access to the required information in the most efficient way. The hyper data centers are used by the could service providers and also the house cloud-based resources.

The hyperscale data centers allow the digital platforms to store and transfer data in an efficient way. In hyperscale data centers, there are multiple numbers of architectures that are designed to provide great service. These architectures are built from a small and individual server. This small and individual server is termed nodes. The work of the nodes to provide storage and helps in networking, and it also computes.

There are so many factors that are contributing to the growth of the hyperscale data center market. Some of the main factors are the increasing requirements for high performance of applications, reduction in capital, and high spending in the hyperscale data center technologies.

There are so many uses who prefer to use these technological solutions is one of the other main reasons behind improve the hyperscale data center market trends, and it is expected to grow more in the coming years.

The power efficiency and the number of increasing applications in the data centeron the rise and excepted to boost the hyperscale data scale market in the period 2017-2023. But there are some things that are affecting the growth of the hyperscale data center market, one is a power failure, and another is an increasing generation of heat. Every country has a huge market share in the hyperscale data center market, but North America is the largest market share, and Asia Pacific is expected to grow faster in the period of 2017-2023.

Covid19 analysis

Due to the extensive spread of the covid-19 virus, the information technology industry had a mixed impact. The hyperscale data center industry is expected to show a positive impact during the period of 2020-2024.

North America will have the highest growth during the forecast period cause they have green data centers, and great Cooling techniques, and infrastructure. With the covid-19 pandemic, the IT sector has to face a direct impact during the forecast period.

Market Dynamics

What are the key drivers of hyperscale data center market?

Hyperscale infrastructure is built to provide better performance. With the growth of technology, the needs are also growing. Some places need to store a huge amount of data, and the requirement of storing the data is also increasing. Also, the growing requirement for high application programs is needed. And the hyperscale data centers can help with fulfilling the requirement for high application performance. The growing need for reduction in CAPED and OPEX. The hyperscale data center can help reduce a company’s major, long-term expenses and day-to-day expenses. One of the hyperscale data center marketkey players is the increase in data center technology spending. These things are the key drivers of hyperscale data center market.

Hyperscale data center market restraints

The hyperscale data center market has one restraint, and that is due to increased infrastructural overheads. The overhead means the ongoing expense of an organization. If the overheads are increasing, then it’d be a problem for an organization to get other services for a company. 

The key players are helping to overcome such restraints, and as a result, hyperscale data center market will grow in coming years.

Challenges in hyperscale data center market growth

The hyperscale data center market faces so many challenges every day, and it tries to overcome them every day. Storage is one of the challenges faced by hyperscale data centers. To store the data, the hyperscale data centers need huge Data storage. Security is one of the other challenges faced by hyperscale data centers, and growing cyber attacks is a threat to their business. A data center has to be highly secured to gain the confidence of the customers. And technology is one of the challenges faced by hyperscale data centers because, with the growing technological advancement, the hyperscale gets affected. And the hyperscale centers need to renew their technology every 3 to 4 years.

Opportunities of the market

The hyperscale data center marketdemand is increasing day by day, and it is expected to reach approximately USD 96 billion by the end of 2023, and that too with 27% CAGR during hyperscale data center market forecast period 2017-2023. The market is getting opportunities due to surge in the data center traffic and also the rapid growth in the number of loT devices. With the growing number of loT devices, the need for hyperscale data centers is also growing.

Cumulative growth analysis of the market

As per the hyperscale data center market analysis in terms of growth, the key players are helping in the growing demands of hyperscale data centers across the globe. The key players are highly responsible for the growth of hyperscale data center market, and some of the key players in the global hyperscale market includeHuawei Technologies Co. Ltd. (China), Dell Inc. (US), Lenovo Group Ltd. (China), IBM Corporation (US), Ericsson (Sweden), Cavium (US), Broadcom Ltd. (US), Intel Corporation (US), Quanta Computer Inc. (Taiwan), Cisco Systems, Inc. (the US).

Value chain analysis

We know the number that the market is expected to rise from $20 billion j. 2018 to $65 billion by 2025. To make sure this happens, the data centers are working hard. Some of the largest software companies are contributing in a big way. The need for storage, software, server, and other services has increased and still going to grow in coming years.

Segment overview

By type

Enterprises- So many companies use hyperscale data to store their data in a secure place. Without a hyperscale data center, it would be a problem to store a huge amount of data.

Cloud provider- Cloud service providers establish public clouds, manage private clouds, offer on-demand cloud computing components, and it can reduce the cost of a business.

Colocation providers- Collocation providers, provide equipment, space, and bandwidth that are available for rental to all the customers.

By solutions

  1. Software

  2. Storage

  3. Server

  4. Service

  5. Others

By vertical

  1. Energy & Utilities

  2. Government and defense

  3. IT & Telecommunication

  4. Retail

  5. BFSI

  6. Manufacturing

  7. Media and entertainment

  8. Healthcare

  9. Others

By region

  1. Asia-Pacific

  2. Europe

  3. North-America

Regional Analysis

Regionally, North America is responsible for the highest market share from the countries among others. The reason behind this is due to the increasing investments for the technological solutions and uses of these solutions by affordable Operational cost. But the Asia Pacific region is expected to grow over the period of 2017-2023. There are so many reasons behind increasing data center traffic, and one of them is the growing demand for different technological solutions. The growth of IT infrastructure is also helping hyperscale data center market to grow.

Competitive landscape analysis 

The market players for hyperscale data center market:

  1. Lenovo Group Ltd. (China)

  2. Cavium (US)

  3. Broadcom Ltd. (US)

  4. Huawei Technologies Co. Ltd. (China)

  5. Quanta Computer Inc. (Taiwan)

  6. Intel Corporation (US)

  7. IBM Corporation (US)

  8. Ericsson (Sweden)

  9. Dell Inc. (US) and Hewlett Packard Enterprise Development LP (US)

  10. Cisco Systems

  11. Inc. (US)

These are the key players that have a huge contribution to hyperscale data center market. They are the players behind the growth of the hyperscale data center marketgrowth such as Intel Corporation (US), Dell Inc. (US) and Hewlett Packard Enterprise Development LP (US), IBM Corporation (US), Broadcom Ltd. (US), Ericsson (Sweden). 

But the Dell Inc. hasa huge contribution to the hyperscale data center market.

Recent Developments

  1. Data center IP traffic will reach 20.6 ZB by the end of 2021, with an increase of 7ZB since 2016.

  2. In 2020 included investments of $17 billion in public cloud infrastructure

  3. The loT market to grow by $50 billion, and with it, the hyperscale data center market will also grow

Report Overview 

  1. Market scenario highlights the hyperscale data center market

  2. Covid-19 analysis

  3. Market dynamics explanation

  4. Value chain analysis for the hyperscale data center market

  5. Segmentation overview

  6. Regional analysis of hyperscale data center market

  7. Competitive landscape analysis 

  8. Recent Developments of hyperscale data center market

Report Scope:
Report Attribute/Metric Details
  Market Size   USD 96 Billion (2023)
  CAGR   27% (2017-2023)
  Base Year   2019
  Forecast Period   2020-2027
  Historical Data   2018
  Forecast Units   Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   By Solution, By Type, By Vertical
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Cisco Systems, Inc. (US), IBM Corporation (US), Huawei Technologies Co. Ltd. (China), Ericsson (Sweden), Lenovo Group Ltd. (China), Cavium (US), Quanta Computer Inc. (Taiwan), Broadcom Ltd. (US), Intel Corporation (US), Dell Inc. (US) and Hewlett Packard Enterprise Development LP (US).
  Key Market Opportunities   Power failure as well as massive generation of heat from hyperscale data centers can restrict the market growth in the coming years.
  Key Market Drivers

  • North-America accounted for the largest market share from countries such U.S. among others.\r\n
  • The reason is attributed to the increasing investments for these technological solutions, adoption of these solutions by various domains and low operational cost.

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    Frequently Asked Questions (FAQ) :

    Hyper Scale data centers consists of a number of architectures, which each of them made of small and individual servers, known as nodes. These nodes help compute, offer storage and facilitate networking.

    Power failure as well as massive generation of heat from hyperscale data centers can restrict the market growth in the coming years.

    North America holds the largest share in the global market.

    Enterprises, Colocation providers, Cloud providers are the types of hyperscale data centers.

    APAC has the potential to gain the fastest CAGR during the review period