Data Center Infrastructure Management Market - Forecast(2024 - 2030)

Data Center Infrastructure Management Market Overview:

The Data Center Infrastructure Management Market size is estimated to reach $41 Billion by 2030, growing at a CAGR of 17.4% during the forecast period 2024-2030. Data Center Infrastructure Management (DCIM) refers to the integrated solution that helps manage and optimize the physical components and operations of data centers, such as servers, cooling systems, power supply and network infrastructure. It encompasses tools to monitor, control and analyze data center operations to ensure efficient energy usage, improve operational performance and reduce downtime. DCIM is essential for ensuring optimal resource utilization, minimizing operational costs, and maximizing the lifespan of critical infrastructure. The market for DCIM is driven by the increasing demand for data storage and processing power fueled by the growth of cloud computing, big data and IoT (Internet of Things). Additionally, the rising emphasis on energy efficiency and sustainability along with regulatory pressures to reduce carbon footprint is propelling the adoption of DCIM solutions. The growing complexity of data centers and the need for better management tools to handle scalability, security and uptime are further driving the market's expansion. As businesses increasingly rely on data-driven operations, DCIM solutions have become integral to ensuring efficient, cost-effective and secure data center operations.

Automation and remote management is a growing trend in the data center infrastructure market, with the increasing complexity of modern data centers, automation technologies such as AI-driven management systems, are becoming essential for managing vast amounts of data, optimizing energy usage and ensuring uptime. Remote management allows data centers to be monitored and controlled from anywhere, enabling operators to quickly address issues without needing on-site intervention. For example, in March 2024, Schneider Electric partnered with NVIDIA to optimize data center infrastructure by combining Schneider Electric's expertise in infrastructure management with NVIDIA's AI technologies. This collaboration aims to introduce the first publicly available AI data center reference designs which will allow for smarter, more automated management, improving performance, energy efficiency, and overall operational cost-effectiveness. Additionally, adoption of modular and scalable architectures is a also a growing trend in the data center infrastructure market as companies seek flexible and efficient solutions to support rapid growth in data demand. Hyperscale data centers, which are designed to accommodate massive amounts of data processing and storage, are increasingly adopting modular and scalable architectures that can be quickly expanded to meet evolving business needs without significant downtime or overhauling of existing infrastructure. For instance, in October 2024, data center firm Equinix formed a joint venture with Singapore's sovereign wealth fund GIC and the Canada Pension Plan Investment Board to raise over $15 billion in capital. This funding will be used to expand the U.S. footprint of hyperscale data centers which are characterized by their ability to scale quickly and offer immense networking capacity. 

Market Snapshot: 
 
Data Center Infrastructure Management Market- Report Coverage:

The “Data Center Infrastructure Management Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Data Center Infrastructure Management Market.
 

COVID-19 / Ukraine Crisis - Impact Analysis:  

The COVID-19 pandemic caused disruptions in global supply chains, leading to delays in the procurement of hardware and software components for data centers. This slowed down the pace of DCIM adoption in some regions. Additionally, many companies faced budget constraints during the pandemic, leading to delayed investments in infrastructure management solutions. However, as remote work and digital services continued to be a norm, DCIM market experienced growth.

The geopolitical instability caused by the Russia-Ukraine war increased the need for robust data security, disaster recovery systems and redundancy in data center operations. With the ongoing uncertainty, companies are prioritizing the resilience of their IT infrastructure, pushing for more advanced DCIM solutions that can offer real-time monitoring, predictive analytics and enhanced security features. The conflict has also highlighted the vulnerability of centralized data centers leading to a shift toward distributed networks and hybrid cloud environments to mitigate risks. 

Key Takeaways:

•    North America Leads the Market:

North America accounted for largest market share  in 2023 driven by the continued expansion of data center infrastructure, especially in the U.S. The demand for public cloud computing and associated services has been steadily increasing, further fueling the growth of data centers in the region. Additionally, the widespread adoption of cloud computing in North America, particularly in the U.S. led to a growing demand for efficient data center management solutions. According to a May 2024 article by Linklaters, North America maintained its lead in data center transaction values, accounting for 62% of the global total in 2023 and 69% of investments up to April 2024, with $15 billion invested, primarily driven by the U.S. Moreover, North America's ongoing digital transformation across various industries further boosts the need for high-performance data centers. Also, as per an October 2024 article by Blackstone, the U.S. is expected to see over $1 trillion invested in data centers over the next five years. This scale of investment underscores the region’s dominance, with the largest data center currently under construction expected to have an estimated 500 megawatts of capacity, equivalent to the power demand of 375,000 homes. With significant investments in data center expansion and modernization along with government and regulatory support for infrastructure and green energy initiatives, North America remains at the forefront of the DCIM market.

•    Services to Register the Fastest Growth

The Services segment in the data center infrastructure market is expected to grow with the fastest CAGR during the forecast period driven by the increasing demand for cloud computing, artificial intelligence (AI) and machine learning technologies which require highly scalable and reliable infrastructure. As businesses increasingly shift to digital-first models, the need for comprehensive service solutions ranging from cloud hosting to interconnection services, is growing rapidly to ensure performance, flexibility, and efficiency. For instance, Amazon's $10 billion investment in Ohio data centers, announced in December 2024, reflects this trend. Amazon Web Services (AWS) announced that it will expand its cloud infrastructure to meet the growing demand for services that power AI, machine learning and data storage. This investment is particularly focused on providing the robust computing and networking capabilities necessary for the future of cloud services. Similarly, in September 2024, DE-CIX India launched its Data Center Interconnection Services which use high-speed packet-optical connectivity to link data centers across varying distances enabling more efficient and seamless data exchange. These services are crucial for businesses that require global connectivity and reliable data transmission across multiple data centers, which further highlights the rapid growth of service-driven solutions in the market.

•    On-Premises Deployment is the Largest Segment

On-Premises Deployment continues to lead the data center infrastructure market due to enhanced control, security, customization and compliance with local regulations. For example, as per a september 2024 article by financial express, approximately 24% of organizations have indicated plans to move a portion of their data from the cloud to on-premise data centers within the next three years. This shift reflects growing concerns over data security, regulatory compliance, and the desire for more control over sensitive information and highlights the strong preference for on-premises infrastructure, despite the growing popularity of cloud services. Organizations particularly in industries like finance, government and healthcare continue to prioritize on-premises deployments due to stringent data privacy and regulatory requirements. Many organizations prefer on-premises solutions for critical workloads because they provide direct oversight of their IT systems ensuring that sensitive data is securely managed and operations are tailored to specific business needs.  Furthermore, on-premises data centers are seen as more reliable for high-performance computing and mission-critical applications where any downtime could significantly impact business operations. For example, in December 2024, Sify Technologies launched a cutting-edge data center in New Delhi, built specifically for India’s Supreme Court. The facility, referred to as a futuristic on-premises data center, aims to bolster the court's IT infrastructure, ensuring that all IT services and computer applications remain highly available. The Supreme Court's investment in such a facility underscores the critical need for high-security, high-availability systems in government and legal sectors where data integrity and uninterrupted service are paramount.

•    Growing Demand for Green Cloud Computing and Data Storage Boosts the Market

Growing demand for green cloud computing and data storage is becoming a significant driver in the data center industry as businesses and governments aim to reduce their carbon footprint and embrace sustainability. Based on projections by Schnieder Electric, by 2040, total data center energy consumption will reach 2,700 TWh. Green cloud computing combines advanced cloud technologies with environmentally friendly practices contributing to both technological innovation and environmental conservation. For instance, in March 2024, G42, an Abu Dhabi-based AI and cloud computing firm, partnered with Kenyan technology company EcoCloud to develop a green data center in Kenya. This data center powered by geothermal energy is expected to have an initial capacity of 100 megawatts. This development aligns with the growing trend of utilizing renewable energy sources to power data centers, reducing their reliance on fossil fuels and minimizing their environmental impact. 

Cost of Maintenance and Upgrades to Hamper the Market

Cost of maintenance and upgrades remains a significant challenge in the data center infrastructure market. As technology evolves rapidly, maintaining and upgrading existing data centers to keep up with new hardware, software and security requirements can be costly for businesses. These costs can include everything from replacing outdated equipment and optimizing infrastructure for better efficiency to ensure compliance with new regulatory standards. Additionally, the physical space, energy consumption and cooling requirements of modern data centers further add to the maintenance burden making it a complex and expensive endeavor for organizations to stay competitive in the market. For example, upgrading to energy-efficient systems, implementing cutting-edge security protocols or scaling up to accommodate growing data demands often requires substantial financial investments. Furthermore, the need to employ skilled technicians for regular maintenance and emergency repairs can also drive up operational expenses. These costs can be particularly challenging for smaller businesses or those with tight budgets potentially hindering their ability to adopt the latest technologies and maintain an optimized, high-performance data center. Thus, the rising expenses tied to regular maintenance and necessary upgrades continue to pose a significant challenge for companies operating in the data center space.

Key Market Players: 

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

1.    ABB Ltd.
2.    Emerson Electric Co
3.    Commscope, Inc.
4.    Eaton Corporation
5.    Vertiv Group Corp.
6.    Schneider Electric SE
7.    Johnson Controls International PLC
8.    IBM Corporation
9.    Huawei
10.    Cisco Systems Inc.

Scope of the Report: 
 

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