Data Center Market Size, Share, Growth Analysis, By Component(Hardware, software, By Type), By Server Rack Density, By Data Center Redundancy, By PUE, By Design, By Tier Level, By Enterprise Size, By End User, By Region - Industry Forecast 2024-2031

Data Center Market size was valued at USD 231.22 Billion in 2022 and is poised to grow from USD 243.01 Billion in 2023 to USD 361.78 Billion by 2031, at a CAGR of 5.10% during the forecast period (2024-2031).

The data center market plays a pivotal role in supporting both the IT and OTT industries. As the industry expands, there is a rapid increase in demand for data center services crucial for data storage, processing, distribution, network connectivity, and security. This escalating demand is driven by several key factors. To begin with, there has been a consistent global rise in internet users, largely due to the widespread adoption of mobile devices and the availability of high-speed broadband connections. This continued growth in internet usage necessitates extensive data storage and processing capabilities, thereby driving the demand for data center services. Furthermore, the prominence of streaming giants such as Netflix, Hulu, and Amazon Prime Video has captured global audiences. These platforms require substantial bandwidth and storage capacities, which further boosts the demand for data centers to support their operations. Moreover, there has been a significant increase in the adoption of cloud computing across the global data center market. This shift enables businesses to rapidly scale their operations efficiently without substantial investments in infrastructure. Consequently, the growing adoption of cloud computing is fueling the demand for data center services to accommodate this evolving landscape.

Top-down and bottom-up approaches were used to estimate and validate the size of the Data Center market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Data Center Market Segmental Analysis

data center market is segmented by component, type, server rack density, data center redundancy, PUE, design, tier level, enterprise size, end user, and region. Based on component, the market is segmented into hardware, software, and services. Based on hardware market is segmented into servers, enterprise network equipment PDU, and UPS. Based on software, the market is segmented into DCIM, virtualization, and others. Based on services, market is segmented into managed infrastructure services, hosting services, support services, and professional services. Based on type, the market is segmented into on-premise, hyperscale, HPC, Colocation, and edge. Based on server rack density, the market is segmented into <10kW, 10-19kW, 20-29kW, 30-39kW, 40-49kW, and >50kW. Based on data center redundancy, the market is segmented into N+1, 2N, N+2, and N. Based on PUE, the market is segmented into Less than 1.2, 1.2 - 1.5, 1.5 - 2.0, and Greater than 2.0. Based on design, the market is segmented into traditional, containerized, and modular. Based on tier level, the market is segmented into Tier 1, Tier 2, Tier 3, and Tier 4. Based on enterprise size, the market is segmented into large enterprise, and small & medium enterprises. Based on end user, the market is segmented into cloud service provider, technology provider, telecom, healthcare, BFSI, retail & e-commerce, entertainment & media, energy, and others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Data Center Market

Many businesses now view data centers as crucial facilities for securely storing and managing their valuable data, appreciating the efficiency and security they provide. Data centers serve as dependable hubs for online services across businesses of varying sizes. According to Akamai Technologies, 63% of Fortune 500 companies rely on data center providers for their cloud needs, highlighting their critical role in ensuring continuous access to bandwidth and storage space for online operations. The demand for data center space is expected to rise steadily in the coming years as more businesses embrace their benefits, prompting data center developers to experience a surge in global demand. Data centers have firmly established themselves as indispensable components of the modern business landscape, with no indication of this changing in the foreseeable future.

Restraints in the Data Center Market

Several factors are impeding the growth of the data center market. The substantial expenses associated with data center equipment and construction pose a significant obstacle to market expansion. Finding adequate space and power for data centers can be challenging in numerous locations. Data centers necessitate meticulous design and construction to ensure optimal performance, which introduces additional complexities and costs. Many enterprises in the global data center market hesitate to delegate their critical data operations to third-party providers, preferring to maintain in-house control over these operations.

Market Trends of the Data Center Market

The rise in demand for AI and cloud services is significantly straining data centers. AI applications require substantial computing power for training complex algorithms, while cloud services depend heavily on data centers to store user data and applications. This surge in demand is pushing the current data center infrastructure to its limits, prompting the market to expand and innovate to meet the growing requirements for data storage and processing power. Data proliferation driven by innovation is overwhelming. Activities like social media interactions and scientific research generate vast amounts of data daily. This exponential growth necessitates substantial resources - increased storage and processing capabilities. To keep pace, data center infrastructure continues to expand. These expansive facilities play a critical role in storing and managing the escalating volume of data, ensuring its accessibility for a wide range of applications, from entertaining content to significant scientific advancements.