Data Center Market size is set to grow by USD 101.79 billion from 2023-2027, rising demand for hyper-converged data centers boost the market, Technavio

NEW YORK, April 18, 2024 /PRNewswire/ -- The global data center market size is estimated to grow by USD 101794 million from 2023-2027, according to Technavio. The market is estimated to grow at a CAGR of 27.22% during the forecast period. In China, converged and hyper-converged infrastructure solutions are favored over standalone systems in data centers. These solutions offer integrated systems of computing, networking, storage, and virtualization. Organizations benefit from lower implementation costs, improved functionality, and efficient infrastructure. Key trends include data security, regulatory compliance, expanding user bases, business scalability, and energy-efficient solutions like solar, wind, and hydroelectric electricity. Market segments include hardware, software, enterprise network equipment, and virtualization. Data center operators focus on 5G networks, data transmission speeds, edge computing services, and cloud offerings for large enterprises. 

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Segment Overview

This data center market report extensively covers market segmentation by Component (IT infrastructure, Power management, Mechanical construction, General construction, Others) End-user (BFSI, Telecom and IT, Government, Energy and utilities, Others) Geography (APAC)

Market segmentation by Component

The Data Center Market is experiencing significant growth due to the increasing demand for digital services and expanding user bases in various industries, particularly in the BFSI sector. This growth is driven by the need for advanced technologies, such as Artificial Intelligence and Machine Learning, to support modern business processes. Data storage needs are a critical component of data centers, with regulatory requirements mandating high levels of data security and availability. To meet these demands, data centers are investing in efficient infrastructure, including high-performance servers, storage area networks, and network-attached storage solutions. Energy efficiency is also a major concern, with data centers turning to renewable energy sources, such as solar, wind, and hydroelectric electricity, to reduce their carbon footprint. Green data centers are becoming increasingly popular, with hyperscale data centers leading the way in hyper scalability and sustainability. The market is segmented into hardware, software, and professional services, with enterprise network equipment, virtualization, and backup and recovery systems being key areas of investment. The market is also witnessing the rise of compact data centers, such as micro data centers and portable data centers, to meet the needs of small enterprises. Data center operators are investing in energy-efficient solutions, such as server rack density optimization and the adoption of 5G networks and edge computing services, to improve data transmission speeds and reduce latency. The market is expected to continue its growth trajectory, with cloud services and technology providers playing a significant role in shaping its future.

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• The data center market faces rising power demands due to cloud computing, AI, and IoT workloads. Server disaggregation increases utilization rates, reducing power consumption. Key trends include digital services, regulatory requirements, expanding user bases, business scalability, storage capacity, efficient infrastructure, computing power, green data centers, renewable energy sources, and automation. Markets involve hardware, software, enterprise network equipment, virtualization, professional services, hyperscale data centers, and various data center types.
• IaaS drives data center consolidation through the use of virtualized resources, leading to cost savings and the adoption of common cloud platforms. Hyperscale data centers, server rack density, and modular designs are key trends. Small enterprises and cloud service providers leverage technology providers for sustainability, automation, and advanced tech like AI and ML. Data centers focus on hyper scalability, functionality, and security. Green data centers reduce energy consumption, while asset performance management ensures optimal operating conditions. Enterprise Engineering Solutions support digital data security and maintenance in corporate data centers.

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Research Analysis

In the dynamic business landscape, the Data Center Market continues to expand, catering to the increasing digital services needs of large enterprises. Regulatory requirements demand robust data storage solutions with high capacity and efficient infrastructure. Business scalability necessitates computing power and energy-efficient solutions. Green data centers, powered by renewable energy sources like Solar, Wind, and Hydroelectric electricity, are increasingly popular. 5G network and edge computing services enable faster data transmission speeds and micro data centers for decentralized processing. Hyper scalability and sustainability are key considerations, with automation and modern business processes enhanced by advanced technologies such as Artificial Intelligence and Machine Learning in cloud services. Cloud computing remains a cornerstone of digital transformation, offering flexibility, reliability, and cost savings.

Market Research Overview

The Data Center market is a significant sector in the technology industry, driven by the increasing demand for digital services and storage. Data Centers are essential components of the cloud computing infrastructure, providing server capacity, power, and cooling for businesses and organizations. The need for efficient and secure data management has led to the expansion of Data Centers worldwide. Companies are investing in advanced technologies such as Artificial Intelligence, Machine Learning, and the Internet of Things to enhance their Data Center capabilities. The market for Data Centers is expected to grow significantly in the coming years, with a focus on sustainability, energy efficiency, and scalability. The Data Center industry is also witnessing the rise of Edge Computing, which brings data processing closer to the source, reducing latency and improving response times. The Data Center market is a dynamic and evolving landscape, shaped by technological advancements and changing business needs.

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio