Data Centre Market by Component (Solution and Services), Type (Colocation, Hyperscale, Edge, and Others), Enterprise Size (Large Enterprises and Small & Medium Enterprises (SMEs)), and End User (BFSI, IT & Telecom, Government, Energy & Utilities, and Others), and Region, Global Trends and forecast from 2024 to 2030

Data Center Market Segmentation Analysis

The data center market is segmented on the basis of component, type, enterprise size, end user and region. On the basis of component, the market is bifurcated into solution and services. Based on type, the market is fragmented into colocation, hyperscale, edge, and others. By enterprise size, it is divided into large enterprises and small & medium enterprises (SMEs). On the basis of end user, the market is segregated into BFSI, IT & telecom, government, energy & utilities, and others.

The Global Data Centre Market is divided into colocation, hyperscale, edge, and other categories based on type. Due to it is more cost-effective for enterprises to share and rent resources, the colocation data sector has the largest market share of 34%. Data, applications, systems continuity, and scalability are all safeguarded by colocation facilities. Furthermore, by eliminating the need to build, maintain, and operate internal server rooms or data centers, clients may access the newest data centre technology and focus on their operations. Large, vital commercial data centers designed to effectively manage dependable, scalable applications are often connected to large data-producing companies such as Microsoft, Google, Amazon, Facebook, IBM, and others. Edge data centers are smaller, more widely distributed establishments that offer cloud computing services and content caching to consumers. Usually, they connect to a centralized data center or numerous data centers.

The market for data centers is divided into types, with hyperscale and edge data centers serving as important divisions. Large-scale cloud services and big data applications are supported by hyperscale data centers, which account for 23% of the market and are distinguished by their enormous scale and excellent performance capabilities. With 18% of the market, edge data centers concentrate on decentralized infrastructure to provide low-latency computing for IoT and content delivery applications. The industry’s varied approach to satisfying the various demands of various computing workloads, from distributed edge computing designs to centralized hyperscale solutions, is reflected in this segmentation.

In terms of market share, the IT and telecom infrastructure accounted for 38% in 2022. Although it includes the server, storage, and network infrastructure that form the foundation of these kinds of facilities, IT infrastructure is the industry’s largest income generator. It will be able to hold its place in the market as the demand for it increases at a rate of about 11.4% CAGR in the future. Businesses are moving from their current resources to well-equipped data centers these days in order to facilitate better data management, as data analysis is now essential to both the public good and commercial progress. In this sense, the establishment of IT infrastructure is still driven by worries about data protection and effective storage.

Regarding end-user segmentation of the data centre market, the second-largest category, accounting for 26% of the market, is the Banking, Financial Services, and Insurance (BFSI) sector. This illustrates how important data processing and security are in the financial arena and how the industry has recognized this. At 15%, the government sector comes next, highlighting how crucial a strong data infrastructure is to the provision of public services and administrative tasks. These segmentation trends underline the personalized solutions and specialized services given by data centers to address the varied demands of different sectors, with a particular focus on security and dependability in BFSI and governmental applications.

Data Center Market Dynamics

Driver

The growing use of high-end cloud computing by businesses in emerging nations is driving the growth of the data centre market over the projected period.

The market for data centres is expanding significantly, mostly due to enterprises in developing countries adopting more sophisticated cloud computing solutions. Scalable and effective computing resources are becoming more and more necessary to support a variety of commercial processes as these economies go through a digital transition. These companies may now access sophisticated processing powers, storage options, and data analytics tools without having to make large upfront infrastructure expenditures thanks to high-end cloud computing services. The understanding that cloud services are a critical facilitator for creativity, agility, and cost-effectiveness in a quickly changing global corporate landscape is driving this development. Over the forecast period, data centre services in these developing regions are expected to continue to rise in demand as companies use cloud-based technology to boost productivity, competitiveness, and adapt to the evolving demands of the digital era. The data center market, therefore, plays a crucial role in supporting the technological aspirations and economic development of businesses in emerging nations.

Restraint

The growth of the data centre industry is expected to be hampered by growing managed services demand and growing data privacy concerns.

Due to two major issues, the data centre sector may encounter hurdles as it continues on its current development trajectory. First of all, as more companies choose for outsourced solutions, the market is changing due to the rising need for managed services. The total development of the market may be impacted by this trend, which points to a move away from traditional data centre ownership and operation. Second, a major obstacle is the growing worries about data privacy. Businesses are being more circumspect about the location and method of storing their data as the need for data protection laws throughout the world becomes more pressing. Decisions on the use of data centers may be impacted by the tighter compliance requirements and higher scrutiny that may result from this enhanced awareness of data privacy. The industry must react by making innovations in areas like data protection due to the rising worries about data privacy and the spike in demand for managed services.

Opportunities

Rapid expansion of the market for hyper-converged infrastructure to spur data centre market opportunities.

The hyper-converged infrastructure (HCI) segment’s fast growth presents potential for the data centre market. By integrating networking, storage, and processing power into a single system, hyper-converged infrastructure improves scalability and streamlines data centre operations. HCI is growing in popularity because it provides a compelling solution for organizations that value agility and efficiency. Because HCI is integrated and flexible, it reduces the complexity of traditional infrastructure, allowing for faster deployments and lower total costs. It is anticipated that opportunities will arise for hardware, software, and services in the data centre ecosystem as a result of this increase in HCI usage. Data centre operators can position the industry for long-term growth powered by the revolutionary potential of HCI by using it to optimize resource utilization, boost performance, and meet the dynamic requirements of new applications.

Data Center Market Trends

• Rise of AI and High-Performance Computing (HPC): AI and HPC workloads are driving demand for data centers with specialized capabilities, such as liquid cooling and high-density power delivery. These workloads generate a lot of heat, so traditional air-cooling methods are no longer sufficient.
• Edge Computing: Edge computing is bringing data processing closer to the source, which reduces latency and improves performance for applications like self-driving cars and augmented reality. This is creating demand for smaller, more distributed data centers located at the edge of the network.
• Sustainability: Data centers are major consumers of energy, and there is growing pressure to make them more sustainable. This is leading to the adoption of renewable energy sources, energy-efficient cooling technologies, and other green initiatives.
• Automation and Cloud-Based Management: Data center operators are increasingly turning to automation and cloud-based management tools to improve efficiency and reduce costs. These tools can automate tasks such as provisioning, monitoring, and troubleshooting, which frees up human operators to focus on more strategic activities.
• Growing Importance of Security: As data centers become more critical to businesses, the need for robust security measures is increasing. This includes protecting against cyberattacks, physical threats, and natural disasters.
• Emergence of New Markets: The data center market is expanding beyond traditional hubs like Silicon Valley and Northern Virginia. New markets are emerging in developing countries and regions with access to renewable energy sources.

Competitive Landscape

The competitive landscape of the Data Center market was dynamic, with several prominent companies competing to provide innovative and advanced Data Center.

1. Alphabet Inc.
2. Com Inc.
3. Digital Realty
4. Equinix Inc.
5. Hewlett Packard Enterprise
6. IBM Corporation
7. Microsoft
8. NTT Communication Corporation
9. Oracle
10. Sap Se
11. Eaton Corporation Plc
12. Schneider Electric Se
13. General Electric Company
14. Carrier Global Corporation
15. Siemens Ag
16. LG Electronics Inc.
17. Fujitsu Limited
18. Mitsubishi Electric Corporation
19. Cisco System Inc
20. Hewlett-Packard Inc

Recent Developments:

December 13, 2023 — Dun & Bradstreet (NYSE: DNB), a leading global provider of business decisioning data and analytics, and IBM have announced a strategic collaboration that will bring together Dun & Bradstreet’s Data Cloud and IBM’s watsonx to help organizations responsibly expand their use of generative AI. Dun & Bradstreet also intends to leverage watsonx for its workflows and solutions, supported by IBM Consulting.

January 11, 2024 – Siemens AG has completed the acquisition of Heliox, a technology leader in DC fast charging solutions, serving eBus and eTruck fleets and passenger vehicles. The acquisition complements Siemens’ existing eMobility charging portfolio, adding products and solutions ranging from 40 kilowatts (kW) to megawatt charging solutions for depots and en-route charging.

Regional Analysis

The market for data centers is dominated by North America. The world’s greatest, most effective, and most sophisticated technical and technological infrastructure may be found in the North American area. This facilitates the rapid and simple implementation of the new generation of data centers. The majority of the businesses that manufacture data centers are likewise based in North America. This is a significant contributing component to this region’s strong growth and market dominance. The fact that US businesses are the most productive in the world is another important element driving the market’s growth and need for data centers. In addition, they are among the wealthiest businesses globally. 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.

The data centre industry has an interesting distribution of market share, with North America trailing closely behind Asia-Pacific (APAC) and Europe. The rise in popularity of APAC is ascribed to the region’s quick industrialization, growing digitization, and rising demand for cloud services in nations like China and India. Europe has a developed IT ecosystem and strong infrastructure, which encourages significant data centre investments. Despite lagging a little, North America is still a major player in the market due to its developed tech sector and ongoing need for more sophisticated processing power. The worldwide character of data centre investments is shown by this geographic distribution, which is influenced by a variety of regional economic and technological variables.

Target Audience for Data Center

• IT Managers and Professionals
• Data Center Operators
• Cloud Service Providers
• Telecommunication Companies
• Enterprises across various industries
• Network Infrastructure Providers
• Government and Public Sector Organizations
• Hardware and Software Vendors
• System Integrators
• Colocation Service Providers

Segments Covered in the Data Center Market Report

 Data Center Market by Component

• Solution
• Services

 Data Center Market by Type

• Colocation
• Hyperscale
• Edge
• Others

Data Center Market by Enterprise Size

• Large Enterprises
• Small & Medium Enterprises (SMEs)

Data Center Market by End User

• BFSI
• IT & Telecom
• Government
• Energy & Utilities
• Others

Data Center Market by Region

• North America
• Europe
• Asia Pacific
• South America
• Middle East and Africa

Key Question Answered

• What is the expected growth rate of the Data Centre market over the next 7 years?
• Who are the major players in the Data Centre market and what is their market share?
• What are the end-user industries driving market demand and what is their outlook?
• What are the opportunities for growth in emerging markets such as Asia-pacific, the middle east, and Africa?
• How is the economic environment affecting the Data Centre market, including factors such as interest rates, inflation, and exchange rates?
• What is the expected impact of government policies and regulations on the Data Centre market?
• What is the current and forecasted size and growth rate of the global Data Centre market?
• What are the key drivers of growth in the Data Centre market?
• Who are the major players in the market and what is their market share?
• What are the distribution channels and supply chain dynamics in the Data Centre market?
• What are the technological advancements and innovations in the Data Centre market and their impact on product development and growth?
• What are the regulatory considerations and their impact on the market?
• What are the challenges faced by players in the Data Centre market and how are they addressing these challenges?
• What are the opportunities for growth and expansion in the Data Centre market?
• What are the services offered and specifications of leading players in the market?