Global Data Center Transformation Market 2023-2030

Global Data Center Transformation Market 2023-2030

Global Data Center Transformation Market Size, Share & Trends Analysis Report by Service (Consolidation Services, Optimization Services, Automation Services, and Infrastructure Management Services), by Tier of Data (Tier 1, Tier 2, Tier 3, and Tier 4), by Data Center (Cloud Data Center, Colocation Data Center, and Enterprise Data Center), and by Vertical (BFSI, IT and Telecommunications, Government and Defense, Manufacturing, Oil and Gas, and Others) Forecast Period (2023-2030)

The global data center transformation market is anticipated to grow at a CAGR of 13.5% during the forecast period (2023-2030). The market’s growth is attributed to growing requirements for hybrid cloud around the globe. Data center transformation activities are required as a result of the emergence of hybrid cloud models in order to promote smooth resource integration between on-premises and cloud-based resources. For instance, in September 2023, HCLTech, launched Shared Data Center as a Service (Shared DCaaS), an advanced service offering, that aims to help enterprises accelerate their hybrid cloud transformation journeys. This service offering includes shared data Centers, dedicated data centers, and regulated workloads in a catalog-based model.

Segmental Outlook

The global data center transformation market is segmented on the service, tier of data, data center, and vertical. Based on the service, the market is sub-segmented into consolidation services, optimization services, automation services, and infrastructure management services. Based on the tier of data, the market is sub-segmented into tier 1, tier 2, tier 3, and tier 4. Based on the data center, the market is sub-segmented into cloud data center, colocation data center, and enterprise data center. Further, based on vertical, the market is sub-segmented into BFSI, IT & telecommunications, government & defense, manufacturing, oil & gas, and others. Among the service, consolidation services sub-segment is expected to capture a significant portion of the market share. This is attributed to the increasing prioritize lowering data center bandwidth and power consumption, together with the rising demand for disaster recovery and data storage services.

The Cloud Data Center Sub-Segment is Anticipated to Hold a Considerable Share of the Market

Among the applications, the cloud data center sub-segment is expected to hold a considerable share of the market. The segmental growth is attributed to the growing demand for assortment of cloud services. Companies can offer an extensive wide range of cloud services, from infrastructure provisioning to innovative artificial intelligence (AI) and big data analytics, owing to the implementation of cloud data centers. For instance, in September 2023, Huawei launched cloud data center, as a part of its initiatives to increase the Middle East's access to its online service offerings. It provides a range of cloud services, including infrastructure, databases, big data, and AI, among others.

Regional Outlook

The global data center transformation market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). Among these, the Asia-Pacific region is anticipated to hold a prominent share of the market around the globe, owing to the BFSI, healthcare, and educational sectors would all increasingly utilize data centers.

The Asia-Pacific Region is Expected to Grow at a Significant CAGR in the Global Data Center Transformation Market

Among all regions, the Asia-Pacific region is anticipated to grow at a considerable CAGR over the forecast period. Regional growth is attributed to the rising data consumption across the region. The growing need for data storage, processing, and management is driving the market growth. More data center space is required by both individuals and corporations as technology continues expanding. According to the India Brand Equity Foundation (IBEF), in June 2023, data centers are secure spaces where computing and networking equipment is housed and used to store, process, and access large amounts of data. They are used by cloud service providers (CSPs), such as Google Cloud Services, Microsoft Azure, and Amazon Web Services (AWS), to provide cloud-based services to customers. Additionally, edge data centers are needed to connect customers with telecom service providers. The data center market in India is the 13th largest in the globe, by holding 138 data centers. Furthermore, it is projected that 45 new data centers encompassing 13 million square feet and 1,015 MW of capacity will be constructed by 2025. In 2021, the value of India's data center industry was estimated to be $ 4.4 billion, which is predicted to increase by 132% and reach $10.1 billion by 2027. Additionally, by the end of 2022, India is expected to have over 700 million internet users, close to twice the number of the United States.

Furthermore, the data center capacity in India is estimated to increase from 870 megawatts (MW) in the previous fiscal year to 1,700-1,800 MW by 2025. This requires an investment of US$ 4.84 billion (Rs. 40,000 crore). The growth is driven by an increased demand for data storage, digital adoption, and local data storage laws. The data center industry in India is experiencing healthy growth, largely due to major hyper-scalers outsourcing their storage needs to third-party data center providers. India's corporate tycoons and overseas investors are investing in Tier 1 cities, but there is potential for growth in Tier 2 and Tier 3 cities as well. Currently, Mumbai has the most data centers in India, accounting for 45% of the total, while Chennai is a distant second but rapidly developing.

Market Players Outlook

The major companies serving the global data center transformation market includes Accenture PLC, Amazon Web Services, Inc., Atos, Cisco Systems, Inc., Cognizant Technology Solutions Corp. and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in December 2022, London Stock Exchange Group (LSEG) and Microsoft entered into a new long-term strategic partnership to architect LSEG’s data infrastructure using the Microsoft Cloud, and to jointly develop new products and services for data and analytics.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global data center transformation market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.