Data Center Market - By Infrastructure , By Data Center Type , by Data Center Rating , By Enterprise Size , By End-use Industry , By Geography - Globa
Divya Paidimalla
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The Data Center Market size is estimated to reach $418 billion by 2030, growing at a CAGR of 9.6% during the forecast period 2023-2030.
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The advantages of Data Centers include?hyper-scalability, sustainability and automation for modern business processes. It is?set to propel the demand for Data Centers during the forecast period. According to USITC, as of 2022, there are approximately 8000 physical data centres present across the globe.
The adoption of advanced technologies such as Artificial Intelligence, Machine Learning, the Internet of Things (IoT), Cloud computing and Edge computing create immense Data Center market opportunities. In September 2020, Accenture invested $3 billion to launch "Cloud First." It is estimated to accelerate the adoption of cloud computing further. This represents the Data Center Industry Outlook.
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COVID-19 / Ukraine Crisis - Impact Analysis:?
With fewer people out in public during the pandemic, the internet has seen a rise in global traffic. Many organizations have encouraged working from home and limiting the number of staff and employees on site. As a result, Data centres are essential for keeping business operations running smoothly. There was a 30-35% increase in data centre capacity due to the trend of remote working and increased internet usage in 2021. This growing demand for data centre capacity drives the market growth in the post-pandemic situation.
Due to Russia’s Ukraine invasion, many companies are pulling out their operations from Russia. In March 2022, SAP SE announced the suspension of sales of new products in Russia due to the Russia-Ukraine crisis. In April, the company announced to shut down all Data Centers, as well as stop support and maintenance of its on-premise products in Russia.
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Key Takeaways:
The Dominance of the North American Region
Geographically, North America (Data Center Market) held 39% of the overall market in 2022 with a revenue of $78 billion. Significant investments by major players present in the region and increasing adoption of advanced technologies are contributing to the overall Data Center Market share. In 2021, more than 100 data centre projects were launched or were under construction in the U.S. Over 90% of data centre projects are developed by colocation service providers and hyper-scale operators such as Facebook, Apple, Google and Microsoft.
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IT Infrastructure is Holding Largest Market Share
The IT infrastructure held the largest Data Center market share of 38.5% in 2022. This segment is estimated to grow at a CAGR of 10.1% during the Data Center market forecast period of 2023-2030. Businesses are shifting away from their existing resources towards well-equipped data centres in order to improve data management. Data Center automation and increased storage efficiency are analyzed to drive the development of IT infrastructure.
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Large Share of Hyper-Scale Data Centers
Based on Data Center Type, the hyper-scale data centres segment held the largest market share of 31.4% in 2022 in the Data Center market analysis report. Rising demand for Internet of Things (IoT) connected devices and growing emphasis on processing a large volume of digital data through high computing power are responsible for the large share of hyper-scale data centres.
The Emergence of Green Data Centers is Poised to Drive Data Center Market Growth
According to the Department of Energy, data centres account for about 2% of all electricity used in the U.S. Green data centre, which provides effective and eco-friendly solutions in terms of data storage and reduction in energy consumption, is analyzed to witness a massive demand. This is set to create Data Center market opportunities.
Integration of Artificial Intelligence
Artificial intelligence in data centres helps in increasing the functionality of asset performance management by proactively detecting and fixing asset operating parameters. It also predicts when the asset needs maintenance based on its operating conditions. According to Enterprise Engineering Solutions,?from 2021 onwards, the utilization of AI would keep on growing at a rate of 34% every year.
Data Security Issues Hamper Market Growth
For data centres handling large amounts of information, security concern is one of the primary factors hampering the market growth. According to Software Testing Help, 76% of corporate data centres worry about data security.
Key Market Players:
Product/Service launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the Data Center Market. The top 10 companies in this market include: