Data Center Market
Growth Factors of Data Center Market
The data center market size was reached at a value of USD 219.23 billion in 2023, and the market is now projected to grow from USD 242.72 billion in 2024 to USD 584.86 billion by 2032, exhibiting a CAGR of 11.6% during the forecast period of 2023-2032.
In the situation of COVID-19 pandemic, cybercrime cases have increased due to widespread adoption of remote labor and growing digital transformation. ID verification was critical during pandemic as they provide touchless verification services that help to control the infection across the globe.
For training and interference, generative AI models particularly those built on deep learning demand a substantial amount of computer power. This may raise the requirement for high-performance computer infrastructure and necessitate the construction of larger data centers. Large data sets are frequently needed for generative AI model training, which calls for reliable data management and storage solutions. Scalable and effective storage solutions will be required by data centers to manage the increasing amount of training data. The use of generative AI technology makes it possible to create data centers with high precision, little interventions, reliable results, and consistent performance. Manufacturers are investing in integration and adoption of advanced technology and implementation in new developments which will aid data center market growth.
Evolution of data center is taking place as a result of new laws, evolving business needs, and technological advancements fueling market expansion. Institutions and organizations are adopting hybrid and multi-cloud strategies to capitalize on the benefits provided by on-premise infrastructure, private cloud environments, and public cloud services which has led has led to a strong demand for interconnection platforms, colocation services, and hybrid cloud management solutions which provide seamless integration, workload mobility, and data portability across many cloud environments widen the growth graph of market. Furthermore, prefabricated and modular data center systems are becoming more and more well-liked because of their scalability, flexibility, and ability to be quickly deployed. In comparison to typical brick-and-mortar facilities, these pre-engineered modules may be easily constructed and deployed to meet changing capacity requirements, improve operating efficiency, and shorten construction time and costs.
Comprehensive Analysis of Data Center Market
The data center market is witnessing an exponential growth rate due to its market segmentation. This market expansion effectively provides a detailed geographical assessment considering the dominant supply and demand forces that impact the technology benefit management industry. These segmentations are methodically segregated by component, by data center type by tier level, by data center size and by industry. The component segment includes, hardware, DCIM (Data center infrastructure management), software and services, by data center type include colocation, hyperscale, edge and others, by tier level include tier 1, tier 2, tier 3, tier 4, and data center include, small medium and large. However, the industry includes BFSI, IT & Telecom, Healthcare, Government, Manufacturing, Retail & E-commerce, and others.
In the data center market, the North America region lead the devices market by benefitting a market size of USD 85.84 billion in 2023 owing to quick transition of consumers towards digital transformation and introduction of 5G technology and adoption of AI technology.
The prominent players in the market play a crucial role in the technology industry assuring industrial prospectus growth and setting market standards. These players include, Schneider Electric (France), Cisco Systems, Inc. (U.S.), Dell Technologies (U.S.), ABB Ltd. (Switzerland), Huawei Technologies Co., Ltd. (China), Hewlett Packard Enterprise Development LP (U.S.), Hitachi Ltd (Japan), NTT Communications (Japan), Comarch SA (Poland) and IBM Corporation (U.S.) these market players provide a level-playing competitive landscape.
In April 2024, Schneider Electric and Digital Realty, a company that offers colocation and connectivity services, partnered. The corporation hopes to extend the life of the mission-critical systems at the PAR5 data storage facility through this agreement.
Segmentation Table
ATTRIBUTE DETAILS
Study Period 2019-2032
Base Year 2023
Estimated Year 2024
Forecast Period 2024-2032
Historical Period 2019-2022
Growth Rate CAGR of 11.6% from 2024 to 2032
Unit Value (USD Billion)
Segmentation By Component
- Power Systems
- Cooling Systems
- Servers
- Networking Devices
- Others (Racks)
- DCIM (Data Center Infrastructure Management) Software
- On-premises
- Cloud
By Data Center Type
- Colocation
- Hyperscale
- Edge
- Others (Managed, Modular)
By Tier Level
- Tier 1 and Tier 2
- Tier 3
- Tier 4
By Data Center Size
By Industry
- BFSI
- IT & Telecom
- Healthcare
- Government
- Manufacturing
- Retail & E-commerce
- Others (Media & Entertainment)
By Region
- North America (By Component, Data Center Type, Tier Level, Data Center Size, Industry, and Country)
- U.S.
- Canada
- Mexico
- South America (By Component, Data Center Type, Tier Level, Data Center Size, Industry, and Country)
- Brazil
- Argentina
- Rest of South America
- Europe (By Component, Data Center Type, Tier Level, Data Center Size, Industry, and Country)
- U.K.
- Germany
- France
- Italy
- Spain
- Russia
- Benelux
- Nordics
- Rest of Europe
- Middle East & Africa (By Component, Data Center Type, Tier Level, Data Center Size, Industry, and Country)
- Turkey
- Israel
- GCC
- North Africa
- South Africa
- Rest of the Middle East & Africa
- Asia Pacific (By Component, Data Center Type, Tier Level, Data Center Size, Industry, and Country)
- China
- India
- Japan
- South Korea
- ASEAN
- Oceania
- Rest of Asia Pacific
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