PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1359924
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1359924
The market size of the data center transformation market is projected to grow from USD 11.5 billion in 2023 to USD 18.9 billion by 2028 at a CAGR of 10.5% during the forecast period. The rise in cloud adoption and hybridization drives the growth of the data center transformation market.
Scope of the Report | |
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Years Considered for the Study | 2017-2028 |
Base Year | 2022 |
Forecast Period | 2023-2028 |
Units Considered | (USD Billion/Million) |
Segments | By Service Type, Tier Type, Data Center Type, Data Center Size, Verticals |
Regions covered | North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
"As per tier type, the tier 3 segment holds the highest CAGR during the forecast period."
The data center transformation market by tier type bifurcates into tier 1, tier 2, tier 3, and tier 4. During the forecast period, 2023-2028, the tier 3 segment holds the highest CAGR. Tier 3 data centers provide advanced functionalities that large companies widely utilize. As mentioned by Uptime Institute, tier 3 data centers have higher uptime, a guaranteed 99.982% availability, and experience a low downtime of only 1.56 hours per year. These data centers are characterized by the N+1 redundancy level, which guarantees the availability of a minimum of one backup equipment in case of system failure. Tier 3 data centers can also provide at least 72-hour power outage protection.
"As per vertical, the healthcare vertical holds the highest CAGR during the forecast period."
The verticals studied in the report are IT & telecom, BFSI, healthcare, manufacturing, government & defense, transportation, retail, energy & utilities, and other verticals (education and media & entertainment). During the forecast period, 2023-2028, the healthcare vertical segment holds the highest CAGR. The healthcare industry has witnessed an exponential increase in the generation of biomedical data. The healthcare industry needs to expand its data center infrastructure to support this increasing data and accommodate system upgrades. The shift from paper-based medical records to electronic health records (EHRs) requires robust data center infrastructure to securely store and manage patient data, ensuring accessibility to authorized healthcare providers. Adopting telemedicine and remote patient monitoring solutions relies on data centers to facilitate real-time video consultations, data collection, and analysis, offering patients more accessible and efficient healthcare services. Healthcare organizations increasingly leverage data analytics and big data for medical research, patient outcomes analysis, and population health management. Data center transformation is essential to support these data-intensive activities.
"As per region, Europe holds the second-largest market share during the forecast period."
The data center transformation market includes an analysis of five regions. Europe holds the second-largest market share in 2023 and will have similar dominance over the forecast period. Europe has diverse business needs, as several large retailers and manufacturing companies demand robust and scalable IT infrastructure solutions. The region has always been a challenging market for cloud providers due to the stringent regulations and security standards regarding user data privacy. In Europe, there is a growing demand for hyperscale data center facilities and data center colocation owing to the availability of green power and favorable climatic conditions. As per findings, the Netherlands has the most advanced hyperscale data center facilities and hosts online services of major cloud providers.
Note: Others include sales managers, marketing managers, and product managers
Note: The rest of the World consists of the Middle East & Africa, and Latin America
Note: Tier 1 companies have revenues of more than USD 100 million; tier 2 companies' revenue ranges from USD 10 million to USD 100 million; and tier 3 companies' revenue is less than 10 million
Source: Secondary Literature, Expert Interviews, and MarketsandMarkets Analysis
The key technology vendors in the market include Dell (US), Microsoft (US), IBM (US), Schneider Electric (France), Cisco (US), NTT (Japan), HCLTech (India), Accenture (Ireland), Cognizant (India), Google (US), Wipro (India), Atos (France), TCS (India), Hitachi (Japan), NetApp (US), Mindteck (India), Bytes Technology Group (UK), General Datatech (US), Insight Enterprises (US), Tech Mahindra (India), NETSCOUT (US), Dyntek (US), Softchoice (Canada), InKnowTech (India), Rahi Systems (US), Blue Mantis (UK), GreenField Software (India), Hyperview (Canada), FlexiScale (UK), LiquidStack (US), RackBank Datacenters (India), and Vapor IO (US). Most key players have adopted partnerships and product developments to cater to the demand for data center transformation.
The market study covers the data center transformation market across segments. The study aims to estimate the market size and the growth potential of the data center transformation market across different market segments, including service type, tier type, data center type, data center size, verticals, and region analysis. It includes an in-depth competitive intelligence analysis of the key players in the market, company profiles, observations related to products, services, business offerings, recent developments, and key market strategies.