Data Center Market - By Infrastructure , By Data Center Type , by Data Center Rating , By Enterprise Size , By End-use Industry , By Geography - Global Opportunity Analysis & Industry Forecast, 2023-2030

Report Code: ITR 0306 Report Format: PDF + Excel

Data Center Market Overview:

The Data Center Market size is estimated to reach $418 billion by 2030, growing at a CAGR of 9.6% during the forecast period 2023-2030. The advantages of Data Centers include hyper-scalability, sustainability and automation for modern business processes. It is set to propel the demand for Data Centers during the forecast period. According to USITC, as of 2022, there are approximately 8000 physical data centres present across the globe.

The adoption of advanced technologies such as Artificial Intelligence, Machine Learning, the Internet of Things (IoT), Cloud computing and Edge computing create immense Data Center market opportunities. In September 2020, Accenture invested $3 billion to launch "Cloud First." It is estimated to accelerate the adoption of cloud computing further. This represents the Data Center Industry Outlook.

Market Snapshot:

Data Center Market

Data Center Market - Report Coverage:

The “Data Center Market Report - Forecast (2023-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Data Center Market.

Attribute Segment

By Infrastructure
  • IT Infrastructure
  • Electrical Infrastructure
  • Mechanical Infrastructure
  • Support Infrastructure
  • Others

By Data Center Type
  • Colocation
  • Hyperscale
  • Edge
  • Cloud Data Center
  • Enterprise Data Center
  • Micro Data Center
  • Others

By Data Center Rating
  • Tier 1
  • Tier 2
  • Tier 3
  • Tier 4

By Enterprise Size
  • Large Enterprises
  • Medium & Small Enterprises

By End-use Industry
  • BFSI
  • IT & Telecommunication
  • Government
  • Healthcare
  • Retail
  • Manufacturing
  • Others

By Geography
  • North America (the US, Canada and Mexico)
  • Europe (Germany, France, the UK, Italy, Spain, Russia and the Rest of Europe)
  • Asia-Pacific (China, Japan, South Korea, India, Australia & New Zealand and the Rest of Asia-Pacific)
  • South America (Brazil, Argentina, Chile, Colombia and the Rest of South America)
  • The Rest of the World (the Middle East and Africa).

COVID-19 / Ukraine Crisis - Impact Analysis: 

With fewer people out in public during the pandemic, the internet has seen a rise in global traffic. Many organizations have encouraged working from home and limiting the number of staff and employees on site. As a result, Data centres are essential for keeping business operations running smoothly. There was a 30-35% increase in data centre capacity due to the trend of remote working and increased internet usage in 2021. This growing demand for data centre capacity drives the market growth in the post-pandemic situation.

Due to Russia’s Ukraine invasion, many companies are pulling out their operations from Russia. In March 2022, SAP SE announced the suspension of sales of new products in Russia due to the Russia-Ukraine crisis. In April, the company announced to shut down all Data Centers, as well as stop support and maintenance of its on-premise products in Russia.

Key Takeaways:

The Dominance of the North American Region

Geographically, North America (Data Center Market) held 39% of the overall market in 2022 with a revenue of $78 billion. Significant investments by major players present in the region and increasing adoption of advanced technologies are contributing to the overall Data Center Market share. In 2021, more than 100 data centre projects were launched or were under construction in the U.S. Over 90% of data centre projects are developed by colocation service providers and hyper-scale operators such as Facebook, Apple, Google and Microsoft.

IT Infrastructure is Holding Largest Market Share

The IT infrastructure held the largest Data Center market share of 38.5% in 2022. This segment is estimated to grow at a CAGR of 10.1% during the Data Center market forecast period of 2023-2030. Businesses are shifting away from their existing resources towards well-equipped data centres in order to improve data management. Data Center automation and increased storage efficiency are analyzed to drive the development of IT infrastructure.

Large Share of Hyper-Scale Data Centers

Based on Data Center Type, the hyper-scale data centres segment held the largest market share of 31.4% in 2022 in the Data Center market analysis report. Rising demand for Internet of Things (IoT) connected devices and growing emphasis on processing a large volume of digital data through high computing power are responsible for the large share of hyper-scale data centres.

The Emergence of Green Data Centers is Poised to Drive Data Center Market Growth

According to the Department of Energy, data centres account for about 2% of all electricity used in the U.S. Green data centre, which provides effective and eco-friendly solutions in terms of data storage and reduction in energy consumption, is analyzed to witness a massive demand. This is set to create Data Center market opportunities.

Integration of Artificial Intelligence

Artificial intelligence in data centres helps in increasing the functionality of asset performance management by proactively detecting and fixing asset operating parameters. It also predicts when the asset needs maintenance based on its operating conditions. According to Enterprise Engineering Solutions, from 2021 onwards, the utilization of AI would keep on growing at a rate of 34% every year.

Data Security Issues Hamper Market Growth

For data centres handling large amounts of information, security concern is one of the primary factors hampering the market growth. According to Software Testing Help, 76% of corporate data centres worry about data security.
 

Data Center Market: Market Share (%) by region, 2022
Data Center Market

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Key Market Players:

Product/Service launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the Data Center Market. The top 10 companies in this market include:

  1. IBM Corporation (IBM Cloud®, IBM Watson)
  2. Amazon.com Inc. (AWS Database Migration Service)
  3. Equinix Inc. (IBX SmartView, Smart Hands)
  4. Hewlett Packard Enterprise Company (HPE Alletra, HPE Primera)
  5. Cisco System Inc (Nexus, HyperFlex Systems)
  6. Alphabet Inc. (Google Data Center)
  7. Microsoft Corporation (Data Center Visio)
  8. NTT Communications Corporation (NTT TX1 Data Center)
  9. Oracle Corporation (Oracle Cloud Region)
  10. SAP SE (SAP HANA Cloud)

Scope of Report:

Report Metric Details

Base Year Considered

2022

Forecast Period

2023–2030

CAGR

Growing at the rate of 9.6%

Market Size

418 billion USD

Segments Covered

Infrastructure, Data Center Type, Data Center Tier, Enterprise Size, End-use Industry and Region

Geographies Covered

North America (the U.S Canada and Mexico), Europe (Germany, France, the UK, Italy, Spain, Russia and the Rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Australia & New Zealand and the Rest of Asia-Pacific), South America (Brazil, Argentina, Chile, Colombia and the Rest of South America), Rest of the World (the Middle East and Africa).

Key Market Players

  
  1. IBM Corporation
  2. Amazon.Com, Inc.
  3. Equinix, Inc.
  4. Hewlett Packard Enterprise Company
  5. Cisco System, Inc.
  6. Alphabet, Inc.
  7. Microsoft Corporation
  8. NTT Communications Corporation
  9. Oracle Corporation
  10. SAP SE.
 

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1. Data Center Market - Overview
    1.1 Definitions and Scope
2. Data Center Market - Executive Summary
3. Data Center Market - Comparative Analysis
    3.1 Company Benchmarking - Key Companies
    3.2 Global Financial Analysis - Key Companies
    3.3 Market Share Analysis - Key Companies
    3.4 Patent Analysis
    3.5 Pricing Analysis
4. Data Center Market - Start-up Companies Scenario
    4.1 Key Start-up Company Analysis by
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Venture Capital and Funding Scenario
5. Data Center Market – Market Entry Scenario Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Case Studies of Successful Ventures
6. Data Center Market - Forces
    6.1 Market Drivers
    6.2 Market Constraints/Challenges
    6.3 Porter's Five Force Model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of substitutes
7. Data Center Market – Strategic Analysis
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Market Life Cycle
8. Data Center Market – by Infrastructure Type (Market Size – $Million/$Billion) 
    8.1 IT Infrastructure
        8.1.1 Server
        8.1.2 Storage
        8.1.3 Network
    8.2. Electrical Infrastructure
        8.2.1 UPS Systems
        8.2.2 Generators
        8.2.3 Transfer switches & Switchgears
        8.2.4 PDUs
    8.3 Mechanical Infrastructure
    8.4 Support Infrastructure
    8.5 Others
9. Data Center Market – by Data Center Type (Market Size – $Million/$Billion) 
    9.1 Colocation
    9.2 Hyperscale
    9.3 Edge
    9.4 Cloud Data Center
    9.5 Enterprise Data Center
    9.6 Micro Data Center
    9.7 Others
10. Data Center Market – by Data Center Rating (Market Size – $Million/$Billion) 
    10.1 Tier 1
    10.2 Tier 2
    10.3 Tier 3
    10.4 Tier 4
11. Data Center Market – by Enterprise Size (Market Size – $Million/$Billion) 
    11.1 Larger Enterprises
    11.2 Small & Medium Enterprises
12. Data Center Market – by End-use Industry Market Size – $Million/$Billion) 
    12.1 BFSI
    12.2 IT & Telecommunication
    12.3 Government
    12.4 Healthcare
    12.5 Retail
    12.6 Manufacturing
    12.7 Others
13. Data Center Market – by Geography (Market Size – $Million/$Billion) 
    13.1. North America
        13.1.1 The U.S.
        13.1.2 Canada
        13.1.3 Mexico
    13.2 Europe
        13.2.1 The UK
        13.2.2 Germany
        13.2.3 France
        13.2.4 Italy
        13.2.5 Spain
        13.2.6 Russia
        13.2.7 The Rest of Europe
    13.3 Asia-Pacific
        13.3.1 China
        13.3.2 India
        13.3.3 Japan
        13.3.4 South Korea
        13.3.5 Australia & New Zealand
        13.3.6 The Rest of Asia-Pacific
    13.4 South America
        13.4.1 Brazil
        13.4.2 Argentina
        13.4.3 Chile
        13.4.4 Colombia
        13.4.5 The Rest of South America
    13.5 The Rest of the World
        13.5.1 The Middle East
        13.5.2 Africa
14. Data Center Market – Entropy
15. Data Center Market – Industry/Segment Competition Landscape 
    15.1 Market Share Analysis
        15.1.1 Market Share by Data Center Type – Key Companies
        15.1.2 Market Share by Region – Key Companies
        15.1.3 Market Share by Country – Key Companies
    15.2 Competition Matrix
    15.3 Best Practices for Companies
16. Data Center Market – Key Company List by Country Premium 
17. Data Center Market - Company Analysis
    17.1 Company 1
    17.2 Company 2
    17.3 Company 3
    17.4 Company 4
    17.5 Company 5
    17.6 Company 6
    17.7 Company 7
    17.8 Company 8
    17.9 Company 9
    17.10 Company 10
* "Financials would be provided to private companies on best-efforts basis."
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The Data Center market is projected to grow at a 9.6% CAGR during the forecast period 2023-2030.

The global Data Center Market size is estimated at $220 billion in 2022 and is projected to reach $418 billion by 2030.

The major players in the Data Center market are IBM Corporation, Amazon.Com Inc., Equinix Inc., Hewlett Packard Enterprise Company and Cisco System Inc., are some of the leading key players in the Data Center market.

The proliferation of IoT-enabled devices, widespread adoption of artificial intelligence and emergence of sustainable green data centers are some of the major trends that would shape the future of the Data Center market.

Increased demand from the BFSI sector and a surge in penetration of high-end cloud computing in enterprises are driving the market forward.