Data Center As A Service Market Size, Share & Trends Analysis Report By Infrastructure (Servers, Storage, Networking), By Organization Size, By Vertical, By Region, And Segment Forecasts, 2022 - 2030

Data Center As A Service Market Growth & Trends

The global data center as a service market size is expected to reach USD 461.4 billion by 2030, expanding at a CAGR of 26.2% from 2022 to 2030, according to a study conducted by Grand View Research, Inc. The market is expected to witness high growth owing to a rise in data traffic, high data center ownership costs, and the rising adoption of cloud computing. Furthermore, the increasing requirement for network capacity expansion by various network operators to provide a better customer experience by reducing latency is expected to drive the adoption of data center-as-a-service (DCaaS).

The increasing workload on the cloud during the pandemic outbreak coupled with the loss of revenue for several firms is expected to compel enterprises to adopt the DCaaS model to reduce expenditure and cut operational and overhead costs. Further, the growing IoT and 5G penetration have led to a significant growth in the data volumes, which is driving organizations to adopt cloud computing and storage solutions. As such, the pandemic outbreak has had a positive impact on the DCaaS market with several large enterprises and SMEs adopting the DCaaS model in order to cater to increased workloads.

Regulatory and compliance requirements are increasing constantly due to transformation in business needs, rising cyber-attacks and data breaches, and increasing data security concerns. For instance, General Data Protection Regulation (GDPR) in Europe regulates how companies protect the data of EU residents under the European Union privacy and data protection laws. As such, the increasing risk of cyber-attacks and stringent data protection laws are expected to create hesitation among end-users in the adoption of DCaaS, thereby posing a challenge to market growth.

Data Center As A Service Market Report Highlights

• Growing demand for sophisticated IT infrastructure to cater to the increased data volumes and advanced applications is expected to contribute to the growth of the servers and storage segments over the forecast period
• The IT and telecommunication vertical segment held the largest market share in 2021 and is expected to retain its dominance over the forecast period. The growing need for increased data storage capacities and faster processing speeds is anticipated to contribute to the growth of this segment
• By organization size, the SMEs segment is expected to witness significant growth over the forecast period owing to the increasing adoption of DCaaS by SMEs due to its cost-effectiveness and lower budgets of SMEs
• Asia Pacific is expected to register a lucrative growth rate over the forecast period owing to the proliferation of smart devices and increasing data volumes across the region