Data Center Market size to grow by USD 329.82 billion from 2022 to 2027, Growth Driven by a Rise in the adoption of multi-cloud and network upgrades to support 5G, Technavio

NEW YORK, Feb. 29, 2024 /PRNewswire/ -- The "data center market by component (IT infrastructure, power management, mechanical construction, general construction, and security solutions), end-user (BFSI, energy, IT, and others), and geography (North America, APAC, Europe, South America, and Middle East and Africa)- Forecast and Analysis 2023-2027" report has been added to Technavio's offering. With ISO 9001:2015 certification, Technavio has proudly partnered with more than 100 Fortune 500 companies for over 16 years. The potential growth difference for the data center market from 2022 to 2027 is USD 329.82 billion, according to Technavio. The rise in the adoption of multi-cloud and network upgrades to support 5Gs is a key factor driving market growth. Multi-cloud uses two or more cloud computing services to deploy specific application services individually. Enterprises are adopting multi-cloud architectures to avoid data loss or downtime due to local component failures, ensure security compliance, and meet workload requirements. Furthermore, this strategy helps avoid dependence on cloud service providers. Most businesses today are adopting a multi-cloud strategy to optimize performance and achieve business goals. Therefore, enterprises leverage multiple public and private clouds for different application workloads. Hence, these factors are expected to drive market growth during the forecast period. Buy the full report here

• Cybersecurity issues are one of the significant challenges restricting market growth. Learn about additional key drivers, trends, and challenges available with Technavio. Read a Sample PDF Report Now

The data center market is segmented by Component (IT infrastructure, Power management, Mechanical construction, General construction, and Security solutions), End-user (BFSI, Energy, IT, and Others), and Geography (North America, APAC, Europe, South America, and Middle East and Africa). 

• The market share growth by the IT infrastructure segment will be significant during the forecast period. The IT infrastructure segment includes server infrastructure, storage infrastructure, software-defined data center network infrastructure, converged infrastructure, backup software and recovery, automation software, and Data Center Infrastructure Management (DCIM) solutions. View the Sample Report for insights into the contribution of all the segments and regional opportunities in the report.

Key Companies:

Alphabet Inc., Amazon.com Inc., Apple Inc., Cisco Systems Inc., CyrusOne LLC, Digital Realty Trust Inc., Equinix Inc., Hewlett Packard Enterprise Co., Intel Corp., International Business Machines Corp., Microsoft Corp., Nippon Telegraph and Telephone Corp., Oracle Corp., Salesforce Inc., SAP SE, Verizon Communications Inc., 365 Data Centers, China Telecom Corp. Ltd., Cyxtera Technologies Inc., and KDDI Corp.

Analyst Review

The data center market is a dynamic landscape comprising various segments and components catering to diverse end-users, including large enterprises and small & medium enterprises (SMEs). These enterprises leverage data centers for their IT & telecom operations, with the BFSI segment being a significant contributor.

In recent years, the market has witnessed a surge in demand driven by factors such as AI integration, which necessitates robust infrastructure capable of handling complex computations. Additionally, the proliferation of hybrid cloud environments has further fueled the need for secure and scalable data center solutions, despite cybersecurity risks looming large.

However, alongside growth factors like AI integration, energy consumption concerns have emerged as a significant restraint. Enterprises are increasingly mindful of the environmental impact of data centers and are seeking energy-efficient solutions.

Furthermore, the advent of edge computing solutions has reshaped the data center landscape, prompting data center expansion to support edge computing infrastructure. This expansion has particularly impacted the U.S. data center market and Europe, where hyperscale segments are witnessing significant growth.

In this competitive market, companies like Seagate Technology Holdings, Phison Electronics Corporation, and NTT Communications Corporation play pivotal roles, offering diverse components and services tailored to different enterprise sizes and end-users. Insights into these components, types, enterprise sizes, and end-users provide valuable guidance for stakeholders navigating the complexities of the data center market.

As the market continues to evolve, seizing opportunities presented by emerging technologies while addressing challenges such as energy consumption concerns will be crucial for sustaining growth and innovation in the data center industry. 

The Data Center Market exhibits diverse segments. Among these, the hyperscale segment stands out for its massive infrastructure, while colocation services cater to varied needs. Each component plays a crucial role in delivering a comprehensive solution for data management and storage. View the Sample Report

Related Reports:

The data center server market is estimated to grow at a CAGR of 15.27% between 2022 and 2027. The size of the market is forecasted to increase by USD 115 billion. 

The EMEA data center cooling solutions market is estimated to grow at a CAGR of  10.44% between 2022 and 2027. The market size is forecast to increase by USD 2,816.78 million.

ToC:

1 Executive Summary
2 Landscape
3 Sizing
4 Historic Size
5 Five Forces Analysis
6 Segmentations
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide 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.

Contacts

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SOURCE Technavio