PUBLISHER: The Business Research Company | PRODUCT CODE: 1465719
PUBLISHER: The Business Research Company | PRODUCT CODE: 1465719
Data center solutions encompass a comprehensive array of services and technologies strategically designed to optimize the performance, reliability, and efficiency of data center operations. These solutions play a crucial role in enabling organizations to establish and maintain robust and resilient data center environments, meeting business requirements while ensuring high availability, scalability, and security of the IT infrastructure.
The primary types of data center solutions include enterprise data centers, mid-size data centers, and large data centers. An enterprise data center is a facility owned and operated by an organization to cater to its data processing and storage needs. It houses physical computing equipment and features supporting infrastructure. The electrical solutions involve power distribution, power backup, and cabin infrastructure, while the mechanical solutions encompass air conditioning, cooling water circulation devices, cooling towers, and management systems. These solutions find applications across various industry verticals, including banking, financial services, and insurance (BFSI), telecommunications and information technology (IT), energy, and healthcare.
The data center solutions market research report is one of a series of new reports from The Business Research Company that provides data center solutions market statistics, including data center solutions industry global market size, regional shares, competitors with a data center solutions market share, detailed data center solutions market segments, market trends and opportunities, and any further data you may need to thrive in the data center solutions industry. This data center solutions 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 solutions market size has grown rapidly in recent years. It will grow from $36.61 billion in 2023 to $41.66 billion in 2024 at a compound annual growth rate (CAGR) of 13.8%. The growth observed in the historic period can be attributed to several key factors. These include the increase in data generation, the ongoing process of digital transformation, widespread adoption of cloud computing, growing concerns related to cybersecurity, and the expansion of edge computing.
The data center solutions market size is expected to see rapid growth in the next few years. It will grow to $68.271 billion in 2028 at a compound annual growth rate (CAGR) of 13.1%. The anticipated growth in the forecast period can be attributed to several key factors. These include the adoption of industry 4.0 technologies, increasing demand from the banking, financial services, and insurance (BFSI) sector, a surge in demand for training services, growth in the energy application segment, and the impact of disruptive technologies. Major trends expected during this period encompass a rise in data center traffic, widespread adoption of Industry 4.0 technologies, a heightened focus on energy efficiency, data center consolidation initiatives, and the ongoing influence of cybersecurity concerns.
The burgeoning utilization of IoT devices is poised to drive the expansion of the data center solutions market in the foreseeable future. IoT devices, characterized by their interconnected nature and embedded sensors, software, and network connectivity, facilitate data collection and exchange, enabling smart and automated functionalities across various domains. This surge in IoT adoption is propelled by its capacity to augment connectivity, data aggregation, and automation, thereby enhancing efficiency and decision-making processes across diverse industries. Within data center solutions, IoT devices play a pivotal role in optimizing operational efficiency and promoting sustainability. Algorithmically controlled IoT devices automate tasks such as patching, monitoring, scheduling, updating, and remote configuration, contributing to more streamlined processes. As per a report by Ericsson, global IoT connections soared to 13.2 billion in 2022, and are projected to escalate by 18% to 34.7 billion connections by 2028, underscoring the significant role of IoT devices in fueling the growth of the data center solutions market.
Leading entities in the data center solutions domain are actively engaged in pioneering technological advancements to bolster their market position and profitability. Noteworthy among these innovations is the introduction of the Data Center Disaster Recovery (DR) Service Solution 2.0, aimed at providing businesses with a resilient, scalable, and cost-effective disaster recovery mechanism to ensure uninterrupted operations during unforeseen disruptions. For instance, in February 2023, Huawei Technologies Corporate Limited rolled out the Data Center DR Service Solution 2.0, addressing the inadequacies of conventional disaster recovery approaches. This solution caters to the needs of industrial clients by furnishing them with an enhanced disaster recovery service. Leveraging the capabilities of the Data Center DR Service Solution 2.0, customers can establish optimized DR systems, fostering continuous service enhancement while effectively managing costs.
In September 2022, WESCO International Inc., a prominent US-based electrical distribution and services company, completed the acquisition of Rahi Systems Pvt. Ltd. for $217 million. This strategic move strengthens WESCO's position as a provider of top-tier data center solutions for its global clientele. Rahi Systems Pvt. Ltd., headquartered in Canada, specializes in offering hyperscale data center solutions.
Major companies operating in the data center solutions market are Google LLC, Microsoft Corporation, Dell Technologies Inc., Huawei Technologies Co Ltd., Amazon Web Services Inc., Siemens AG, Lenovo Group Limited, HP Inc., IBM Corporation, Cisco Systems Inc., Oracle Corporation, KDDI Corporation, Schneider Electric SE, Fujitsu Limited, ABB Ltd., Hewlett Packard Enterprise Company (HPE), Johnson Controls International plc, NTT Ltd., Eaton Corporation, China Telecom, Emerson Electric, Delta Electronics, Equinix Inc., Vertiv Co., Digital Realty, Rittal GmbH & Co. KG, Black Box Corporation, GDS Holdings, CyrusOne, Cyxtera Technologies, Tripp Lite
North America was the largest region in the data center solutions market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center solutions market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the data center solutions market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The data center solutions market consists of revenues earned by entities by providing services such as managed data center services, data center support services, data center as a service, and managed hosting. The market value includes the value of related goods sold by the service provider or included within the service offering. The data center solutions market consists of sales of uninterruptible power supplies, network switches, and storage systems. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
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 Solutions 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 solutions 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.
Where is the largest and fastest growing market for data center solutions ? 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 solutions 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 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.