Data Center Services Global Market Report 2024

Data center services encompass essential components necessary for the proper functioning of a data center, offering organizations networking, data backup and recovery, data management, website hosting, and related services through hardware and software infrastructure.

Key services provided within the data center services market include installation and integration, training, consulting, maintenance and support, among others. Installation and integration services involve setting up and consolidating data center management processes into a unified, user-friendly, and highly efficient platform. Data centers vary in size-small, medium, and large-providing services such as servers, storage, and networking solutions. These services find applications across various sectors such as BFSI, colocation, energy, government, healthcare, IT and telecom, manufacturing, and other industries.

The data center services market research report is one of a series of new reports from The Business Research Company that provides data center services market statistics, including data center services industry global market size, regional shares, competitors with a data center services market share, detailed data center services market segments, market trends and opportunities, and any further data you may need to thrive in the data center services industry. This data center services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The data center services market size has grown rapidly in recent years. It will grow from $68.44 billion in 2023 to $78.51 billion in 2024 at a compound annual growth rate (CAGR) of 14.7%. The expansion witnessed in the historical period can be attributed to several factors, including the increasing adoption of digitalization, a rise in the establishment of data centers, robust economic growth in emerging markets, and an escalating demand for cloud computing services.

The data center services market size is expected to see rapid growth in the next few years. It will grow to $131.45 billion in 2028 at a compound annual growth rate (CAGR) of 13.8%. Forecasted growth is due to increased OTT service usage, rising internet penetration, a surge in structured and unstructured data, and growing 5G subscriptions. Key trends include technological advancements, micro data center services, clean energy-powered hyper-scale data centers, off-grid data center-as-a-service focus, and industry partnerships.

The data center services market is anticipated to experience significant growth, primarily driven by the increasing adoption of digitalization. This adoption is fueled by various factors such as the pursuit of enhanced productivity, cost reduction in operations, faster decision-making processes, improved efficiency, technological advancements, and a general push towards digitalization from stakeholders. As organizations embrace digital transformation, a substantial amount of data is generated, necessitating robust storage solutions. This, in turn, fuels the demand for data centers. Consequently, there is a surge in the requirement for data center services to establish, manage, and operate these data centers effectively. A survey conducted by Fujitsu among 1,200 CXOs and decision-makers across nine countries revealed that 82% of respondents from offline organizations accelerated their digital transformation during the pandemic. The shift to digital modes of living and working prompted organizations to adapt, creating a higher demand for digital services, including data center solutions.

The rise in the usage of Over-The-Top (OTT) services is poised to contribute significantly to the growth of the data center services market. Leading OTT service providers leverage global data center services, particularly for data storage, to deliver content to users from secure and controlled data center environments. The increasing reliance on diverse OTT services is expected to drive demand for data center services as these providers expand their offerings. For instance, statistics from Demand Sage indicate that the global OTT user base reached 3.26 billion in 2022, with projections estimating an increase to 3.5 billion users in 2023. Additionally, OTT revenue is anticipated to grow from $272.70 billion in 2022 to $316.10 billion in 2023. This surge in OTT services is poised to be a key factor propelling the growth of the data center services market in the foreseeable future.

The data center services market is witnessing a significant trend driven by technological advancements. This trend involves the integration of next-generation technologies into data center services, encompassing automation, blockchain, the Internet of Things (IoT), 5G mobile broadband, cloud computing, artificial intelligence (AI), data analytics, and others. These technological advancements bring forth advanced features, automation capabilities, enhanced efficiency, improved reliability, and cost reduction for providers of data center services. Major companies operating in this market are strategically focused on offering technologically advanced data center services to fortify their positions. For example, ABB, a Sweden-based automation company, provides ABB Ability Data Center Automation systems designed for energy conservation and sustainability. These industrial automation systems operate continuously, optimizing operational processes, minimizing the risk of downtime, and reducing waste caused by unnecessary or premature maintenance.

Companies within the data center services market are prioritizing the delivery of technologically advanced solutions to enhance their services and fortify their market positions. The integration of next-generation technologies into data center services, including automation, blockchain, IoT, 5G mobile broadband, cloud computing, AI, and data analytics, is a notable industry trend. As an illustration, in February 2023, Amazon Web Services Inc., a subsidiary of Amazon specializing in on-demand cloud computing platforms, introduced the Amazon Web Service Modular Data Center (AWS MDC) as part of the $9 billion Joint Warfighting Cloud Capability (JWCC) contract with the U.S. Department of Defense. The AWS MDC serves as an edge-computing service, offering secure access to AWS Outposts technology for government agencies. The Department of Defense leverages this solution to ensure reliable network connectivity and military-grade security in Disconnected, Disrupted, Intermittent, or Limited (DDIL) situations, addressing data processing needs with low latency.

In September 2021, Equinix Inc., a US-based digital infrastructure company, acquired GPX India, the India operations of GPX Global Systems Inc., for $161 million. This acquisition significantly broadened Equinix's footprint in India, incorporating two fully integrated data centers into its portfolio, setting the stage for future expansion in the region. GPX Global Systems Inc., headquartered in the US, specializes in providing carrier-neutral data center services to clients across the globe.

Major companies operating in the data center services market report are Fujitsu Ltd., Equinix Inc., Cisco Systems Inc., Huawei Technologies Co. Ltd., Capgemini SE, Hewlett Packard Enterprise Company, NTT Communications, Dell Technologies, IBM Corporation, HCL Technologies Limited, CtrlS, ESDS, GPX devlopes, sify technologies, Nxtra data limited, Alibaba Group, Chayora, China Mobile International, Chindata Group, GDS Services, Haoyun Changsheng, Keppel Data Centres, Shanghai Atrium, Tencent, Tenglong Holding Group, ABB Ltd., Interxion, Euclyde Data Centers, STT GDC, Echelon Data Center, NDC Data Centers GmbH, Broadcom Inc., Arista Networks, 4D Data Center, ClusterPower, Linxdatacenter, Infosys Poland, CoreSite LA1 Data Center, Zenlayer, Cyxtera, Systems-X, ISK Global, Quanam, Ithreex Global, Systemico, Zimmic, Andes Digital, Nournet, Detasad, Mobily, STC, Salam, Gulf Data Hub, Go DC, Gateway Gulf, Nashirnet, MainOne, PCCW Global, Databridge, ONIX Data Centre, IXAfrica, ST Digital, Raxio, N+One, Africa Data Centres, Teraco, Rack Centre Africa.

North America was the largest region in the data center services market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the data center services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The data center services market includes revenues earned by entities by providing access to applications and data. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Data Center Services Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on data center services market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for data center services? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The data center services market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Services: Installation And Integration Services; Training Services; Consulting Services; Maintenance And Support; Other Services
• 2) By Type: Small Data Centers; Medium Data Centers; Large Data Centers
• 3) By Infrastructure Type: Servers; Storage And Networking
• 4) By Application: BFSI (Banking, Financial Services And Insurance); Colocation; Energy; Government; Healthcare; IT (Information Technology) And Telecom; Manufacturing; Other Applications
• Companies Mentioned: Fujitsu Ltd; Equinix Inc.; Cisco Systems Inc; Huawei Technologies Co. Ltd; Capgemini SE
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery Format: PDF, Word and Excel Data Dashboard.