Data Center Market Size to Grow by USD 615.96 Bn, Rise in Adoption of Multi-cloud and Network Upgrades to Drive Growth - Technavio

NEW YORK, Nov. 9, 2022 /PRNewswire/ -- The data center market is growing at a CAGR of 21.98% and is expected to register an incremental growth of USD 615.96 billion between 2021 and 2026. The report analyses the market size, growth, and provides accurate predictions on the growth of the market.

• The report recognizes the following as the key players in the data center market: Alphabet Inc., Amazon.com Inc., Cisco Systems Inc., Equinix Inc., Microsoft Corp., NTT DATA Corp., Oracle Corp., SAP SE, Huawei Investment & Holding Co. Ltd., and International Business Machines Corp., among others.
• The global data center market structure is fragmented in nature.
• North America to have a significant share in the data center market.
• Market to observe 20.22% YOY growth in 2022.

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The data center market is expected to witness substantial growth during the forecast period, primarily due to the rise in the adoption of multi-cloud and network upgrades to support 5G. Enterprises are using multi-cloud architecture to prevent data loss or downtime. The demand for the deployment of 5G networks across the globe is also expected to increase during the forecast period. With the implementation of 5G technologies and the increase in speed, the rate at which data is transmitted, generated, and consumed will grow. This will drive the need for upgrading the existing data center network infrastructure and increasing new data centers constructed closer to data origins, which will impact the market growth generated during the forecast period.

The report also covers information on the upcoming trends and challenges that will influence the market growth. Explore additional information by Downloading a Sample Report.

• Alphabet Inc. - The company offers high-performing, secure, reliable, and efficient data centers throughout the world through its subsidiary Google.
• Amazon.com Inc. - The company offers data centers through its subsidiary Amazon Web Services.
• Cisco Systems Inc. - The company offers data centers, namely Cisco Data Center, for networking and computing.
• DXC Technology Co. - The company offers data centers to optimize and manage IT estate.
• Equinix Inc. - The company offers data centers with real-time, online infrastructure monitoring and flexible power and usage solutions.

This report provides a full list of key vendors, their strategies, and the latest developments. Buy Now for detailed vendor information

The data center market is segmented by component (IT infrastructure, power management system, mechanical construction, general construction, and security solutions).

The IT infrastructure segment is expected to be the largest segment of the global data center market during the forecast period. The segment is driven by the significant rise in the adoption of IT infrastructure owing to the growth in demand for computing power and storage.

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The global data center market is analyzed across five regions — APAC, Europe, North America, South America, and the Middle East and Africa.

North America is the dominating region and is expected to account for 35% of the global market share during the forecast period. Factors such as a significant increase in the adoption of cloud services by enterprises across industries in countries such as the US and Canada will drive the growth of the data center market in North America.

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Along with the market data, Technavio offers customizations as per the specific needs of companies. The following customization options are available for the data center market report: 

•  Further breakdown of the market segmentation at requested regions. 

• Detailed analysis and profiling of additional market players, vendor segmentation, and vendor offerings.
• Know the strategies adopted by vendors during the recovery phase. Read Our Sample Report

• Data Center Mechanical Construction Market by Product and Geography - Forecast and Analysis 2022-2026: The growing investments in data center construction are driving market growth. The explosive growth in data traffic due to increasing implementation of automation across industries, developments in networking communication technologies, rising investment in HMI technologies, among other factors, are driving investments in data centers worldwide. For instance, in 2021, the National Payment Corporation of India announced that it would invest INR 500 crores in its own data center.
• Software-Defined Data Center (SDDC) Market by Component and Geography - Forecast and Analysis 2022-2026: The demand for data center modernization is driving market growth. The use of AI, ML, and deep learning (DL) generates huge volumes of data. SDDC solutions are designed to handle heavy workloads.

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1.         Executive Summary 9

2.         Market Landscape  17

2.1       Market ecosystem   18

2.2       Value chain analysis            26

3.         Market Sizing 27

3.1       Market definition      28

3.2       Market segment analysis    30

3.3       Market size 2021       31

3.4       Market outlook: Forecast for 2021 - 2026  33

4.         Five Forces Analysis 37

4.1       Five forces analysis  38

4.2       Bargaining power of buyers           39

4.3       Bargaining power of suppliers       41

4.4       Threat of new entrants        42

4.5       Threat of substitutes 43

4.6       Threat of rivalry         44

4.7       Market condition     46

5.         Market Segmentation by Component     47

5.1       Market segments     48

5.2       Comparison by Component          50

5.3       IT infrastructure - Market size and forecast 2021-2026    51

5.4       Power management - Market size and forecast 2021-2026      64

5.5       Mechanical construction - Market size and forecast 2021-2026          73

5.6       General construction - Market size and forecast 2021-2026     80

5.7       Security solutions - Market size and forecast 2021-2026 85

5.8       Market opportunity by Component         89

6.         Customer landscape          90

6.1       Customer landscape          91

7.         Geographic Landscape    92

7.1       Geographic segmentation 93

7.2       Geographic comparison   95

7.3       North America - Market size and forecast 2021-2026     96

7.4       APAC - Market size and forecast 2021-2026        100

7.5       Europe - Market size and forecast 2021-2026      104

7.6       South America - Market size and forecast 2021-2026     109

7.7       MEA - Market size and forecast 2021-2026           113

7.8       Key leading countries         117

7.9       Market opportunity by geography           118

8.         Drivers, Challenges, and Trends     120

8.1       Market drivers           121

8.2       Market challenges  124

8.3       Market trends           128

9.         Vendor Landscape 131

9.1       Overview      132

9.2       Landscape disruption         133

10.       Vendor Analysis       135

10.1     Vendors covered     136

10.2     Market positioning of vendors       138

10.3     Alphabet Inc.            140

10.4     Amazon.com Inc.    142

10.5     Cisco Systems Inc.    144

10.6     DXC Technology Co.           146

10.7     Equinix Inc.    148

10.8     Huawei Investment and Holding Co. Ltd. 150

10.9     International Business Machines Corp.     152

10.10   Microsoft Corp.        154

10.11   Oracle Corp. 156

10.12   SAP SE 158

11.       Appendix      160

11.1     Scope of the report 161

11.2     Currency conversion rates for US$ 163

11.3     Research methodology      164

11.4     List of abbreviations 167

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