Data Center Market by Component (Solution and Services), by Type (Colocation, Hyperscale, Edge, and Others), by Infrastructure (Information Technology (IT), Electrical, and Mechanical), by Rack Unit (Below 24U, 24U to 40U, and Above 40U), by Enterprise Size (Large Enterprises and Small & Medium Enterprises (SMEs)), by Density (Low, Medium, High, and Extreme), and by End User (Banking, Financial services and Insurance (BFSI), Information Technology (IT) & Telecom, Government, Energy & Utilities, and Others) – Global Opportunity Analysis and Industry Forecast 2022-2030

Market Definition

The Data Center Market size was valued at USD 200.20 billion in 2021 and is predicted to reach USD 340.10 billion by 2030 with a CAGR of 5.3% from 2022 to 2030.

Data centers are facilities made up of networked computers, storage systems, and computational infrastructure, to gather, process, store, and distribute massive amounts of data. It is a physical or virtual facility consisting of servers, mainframes, and databases that are connected internally and externally through networking and communication equipment. The equipment includes routers, switches, firewalls, storage systems, servers, and application delivery controllers. In addition, data centers are used to store, process, and share large amounts of data & information of an organization that is made available round-the-clock to its users such as gaming platforms, online retailers, and others. It increasingly incorporates facilities for securing and protecting cloud computing resources and in-house, on-site resources.

Market Dynamics and Trends

Rapidly increasing investment in data centers by hyperscalers providing cloud services, internet services, and others in developing countries such as China, India, and Brazil are driving the market growth of data centers. For instance, in May 2022, according to Investment Information and Credit Rating Agency of India Limited (ICRA) report on data center market, Indian data centers saw 5-times capacity growth with investments up to Rs 1.20 lakh crore investment. This growth is driven by the outsourcing of storage needs of Microsoft, Google, and IBM.

Also, the growing demand for cloud services by government agencies owing to the need for increased transparency & accountability in delivering high-value citizen services and achieving economic growth is further driving the market of data centers. Moreover, the rising adoption of advanced technologies such as the internet of things (IoT), and artificial intelligence (AI) in smart watches, gaming consoles, heating, ventilation, and cooling (HVAC) systems that generate huge volumes of data are being generated that is stored on the cloud is further driving the market growth of data centers.

However, increasing installation costs and environmental regulations restricting high carbon emissions through these data centers are factors that are expected to restrain the growth of market during the forecast period. On the contrary, increasing adoption of environment-friendly data centers that are continuously expanding and innovating resources to conform to sustainability in various ways such as using hydropower, solar power, and passive cooling systems that consume significantly less power and tolerate higher temperatures is expected to drive the market growth of data centers in the coming years.

Market Segmentations and Scope of the Study

The data center market share is segmented on the basis of component, type, infrastructure, rack unit, enterprise size, density, end user, and geography. On the basis of component, the market is divided into solution and services. On the basis of type, the market is classified into colocation, hyperscale, edge, and others. On the basis of infrastructure, the market is categorized into information technology (IT), electrical, and mechanical. Information Technology (IT) is further segmented into server, storage, and network. Electrical infrastructure is further segmented into uninterrupted power supply (UPS) systems, generators, transfer switches & switchgear, and professional development units (PDUs). Mechanical infrastructure is further segmented into cooling systems, computer room air conditioning (CRAC) & computer room air handler (CRAH) units, chiller units, cooling towers, condensers, & dry coolers, and economizers & evaporative coolers. On the basis of rack unit, the market is bifurcated into below 24U, 24U to 40U, and above 40U. On the basis of enterprise size, the market is divided into large enterprises and small & medium enterprises (SMEs). On the basis of density, the market is classified into low, medium, high, and extreme. On the basis of end user, the market is divided into banking, financial services, and insurance (BFSI), information technology (IT) & telecom, government, energy & utilities, and others. Geographic breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America holds the lion share of data center market and is expected to continue its dominance during the forecast period. This is attributed to factors such as increasing adoption of cloud services by enterprises across industries in countries such as the US and Canada to support 5G, expansion by hyper-scalers such as Amazon Web services (AWS) and Google. For instance, in April 2022, Google announced to invest USD 9.5 billion in data centers and offices in the U.S. as the demand for Google cloud services and infrastructure by customers for growing businesses that are engaged in providing digital services.

Also, the presence of major market players in this region includes Alphabet Inc., Amazon Inc., Cisco Systems Inc., and Equinix Inc. For instance, in March 2022, Equinix announced to acquire 4 Entel data centers in Chile and Peru at an enterprise value of approx. USD 750 million. This acquisition accelerated digital transformation opportunities for local businesses and multinational companies in the region.

On the other hand, Asia Pacific is expected to show a steady rise in the data centers market in the countries like China, Singapore, and India among which Singapore being the major contributor with 60% data centers in this region. For instance, according to International Trade Administration, there are more than 70 operational data centers with a capacity of 378MW in Singapore following the rapid growth of artificial intelligence (AI), crypto trading, and others.

Also, increasing data localization norms that restricts the flow of data from one country to another or within jurisdiction area has encouraged setting up of local data centers in this region. For instance, in July 2021, according to Centre for strategic and International Studies report on data localization, India implements data localization norms following various approaches such as soft localization, hard localization, and hybrid localization mandates through the current draft Personal Data Protection Bill and other regulations.

Competitive Landscape

Various market players operating in the data centers market include Equinix, Digital Realty Trust, China Telecom, NTT GDC, China Unicom, China Mobile, CyrusOne, KDDI Telehouse, GDS, and Global Switch. These market players are adopting various joint venture strategies and planning expansion of business across various regions to maintain their dominance in the data center market.

For instance, in January 2022, Digital Realty Trust acquired Teraco at a transacting value of USD 3.5 billion. This acquisition made Digital Realty a leading data center and connectivity provider in the African market. Moreover, in February 2022, Telehouse in collaboration with KDDI announced to set up data center in Thailand. This business expansion answered the growing demand for internet connectivity in the country following the shift towards a digital economy supported by the Thailand government’s Industry 4.0 transformation plan.

KEY BENEFITS

• The data centers market report provides the quantitative analysis of the current market and estimations from 2022 to 2030. This analysis assists in identifying the prevailing market opportunities to capitalize on.

• The study comprises of a detailed analysis of the data centers market trends including the current and future trends for depicting the prevalent investment pockets in the market.

• The information related to key drivers, restraints, and opportunities and their impact on the data centers market is provided in the report.

• The competitive analysis of the market players along with their market share in the data centers market is mentioned.

• The SWOT analysis and Porter’s Five Forces model are elaborated in the study.

• The value chain analysis in the market study provides a clear picture of the stakeholders’ roles.

KEY MARKET SEGMENTS

By Component

• Solution 

• Services 

By Type

• Colocation

• Hyperscale

• Edge

• Others 

By Infrastructure

• Information Technology (IT)

  • Server

  • Storage

  • Network

• Electrical infrastructure

  • UPS Systems

  • Generators

  • Transfer Switches & Switchgear

  • Professional Development Units (PDUs)

• Mechanical infrastructure

  • Cooling systems

  • By System Type

  • Computer Room Air Conditioning (CRAC) & Computer Room Air Handler (CRAH) 

  • Chiller Units

  • Cooling Towers, Condensers, & Dry Coolers

  • Economizers & Evaporative Coolers

By Racks Unit

• Below 24U

• 24U to 40U

• Above 40U

By Enterprise size

• Large Enterprises

• Small Enterprise & Medium Enterprises

By Density

• Low

• Medium 

• High 

• Extreme

By End User

• Banking, Financial Services and Insurance (BFSI)

• Information Technology (IT) & Telecom

• Government,

• Energy & Utilities

• Others

By Geography

• North America

  • U.S

  • Canada

  • Mexico

• Europe

  • Germany

  • France

  • Italy

  • Spain

  • United Kingdom

  • Russia

  • Sweden

  • Rest of Europe 

• Asia-Pacific

  • Australia

  • China

  • India

  • Japan

  • South Korea

  • Indonesia

  • Singapore

  • Rest of Asia-Pacific

• RoW

  • UAE

  • Brazil

  • South Africa

  • Israel

  • KSA (Kingdom of Saudi Arabia)

  • Turkey

  • Remaining Countries

REPORT SCOPE AND SEGMENTATION: