NEW YORK, July 24, 2024 /PRNewswire/ -- The
global data center market size is estimated to grow by
USD 434.8 billion from 2024-2028,
according to Technavio. The market is estimated to grow at a
CAGR of 14.52% during the forecast period. Rise in adoption of
multi-cloud and network upgrades to support 5G is driving market
growth, with a trend towards implementation of ai in data
centers. However, cybersecurity issues poses a challenge. Key
market players include 365 Data Centers, Alphabet
Inc., Amazon.com Inc., Apple Inc., China Telecom Corp. Ltd.,
Cisco Systems Inc., CyrusOne LLC, Cyxtera Technologies Inc.,
Digital Realty Trust Inc., Equinix Inc., Hewlett Packard Enterprise
Co., Intel Corp., International Business Machines Corp., KDDI
Corp., Microsoft Corp., Nippon Telegraph and Telephone Corp.,
Oracle Corp., Salesforce Inc., SAP SE, and Verizon Communications
Inc..
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Component (IT
infrastructure, Power management, Mechanical construction, General
construction, and Security solutions), End-user (BFSI, Energy, IT,
and Others), and Geography (North America, APAC, Europe, South
America, and Middle East and Africa)
|
Region
Covered
|
North America, APAC,
Europe, South America, and Middle East and Africa
|
Key companies
profiled
|
365 Data Centers,
Alphabet Inc., Amazon.com Inc., Apple Inc., China Telecom Corp.
Ltd., Cisco Systems Inc., CyrusOne LLC, Cyxtera Technologies Inc.,
Digital Realty Trust Inc., Equinix Inc., Hewlett Packard Enterprise
Co., Intel Corp., International Business Machines Corp., KDDI
Corp., Microsoft Corp., Nippon Telegraph and Telephone Corp.,
Oracle Corp., Salesforce Inc., SAP SE, and Verizon Communications
Inc.
|
Key Market Trends Fueling Growth
Data centers are enhancing energy efficiency through the
application of Artificial Intelligence (AI). AI technology enables
faster decision-making and optimization of server, power, and
cooling systems. Data center service providers use AI in automation
software to eliminate human intervention, facilitating
energy-efficient operations. AI also optimizes cooling processes,
allowing effective power usage and reducing downtime and human
errors. AI monitors device performance in data centers, predicting
potential failures and adjusting processes accordingly. Benefits of
AI-based data center automation software include reduced
infrastructure costs, operating costs, and deployment time. By
2028, advanced robots with AI and machine learning capabilities
will increase cloud data center operating efficiency by over 30%.
This trend will significantly contribute to the growth of the
global data center market.
Data centers play a crucial role in storing and analyzing data
for businesses, e-commerce companies, and individuals. With the
rise of personalized data and application performance, data center
workloads continue to grow. Mobile data use and internet usage have
surged, leading to increased storage requirements. Cloud data
storage solutions like Amazon Web Services offer scalability and
flexibility. Data security, backups, and internet bandwidth are top
priorities. Managed hosting and colocation offer customized
solutions for businesses. Big data and data analytics are driving
innovation, with intelligent buildings, public cloud, and
hyper-scale platforms leading the way. The Department of Energy
focuses on green data centers. AI, ML, IoT, and IT infrastructure
are key trends. Software testing solutions ensure application
performance. Customers demand digitalization, and businesses
respond with innovative data center solutions.
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Market Challenges
- Data is a valuable asset for businesses, fueling revenue
opportunities through trend analysis and informed decision-making.
However, securing sensitive data, including customer information,
is a significant concern. Cyberattacks, particularly those
targeting cloud services and IoT solutions, pose a growing threat.
Non-compliance with data protection regulations can lead to hefty
penalties. The increase in DDoS attacks, which disrupt business
continuity, is a major challenge. These factors may hinder the
expansion of the global data center market. Enterprise server
estates are at risk of being hacked, potentially compromising data
and shutting down businesses. Strict government regulations on
citizen data security add to the complexity for cloud service
providers.
- Data Centers face numerous challenges in today's digital world.
Artificial Intelligence and Machine Learning require massive
computing power, driving the need for advanced IT infrastructure.
The Internet of Things (IoT) and Cloud Computing increase the
demand for real-time data processing and scalability. Green Data
Centers are essential for businesses seeking cost savings and
sustainability. The Department of Energy and Enterprise Engineering
Solutions focus on energy efficiency. Software Testing Help ensures
data security and reliability. Customers, including individuals and
B2B enterprises, demand faster response times and flexibility.
Digitalization and the Digital Economy drive the exponential trend
towards more data creation and usage. Challenges include latency,
autonomous vehicles, smart cities, and decentralized
Data Centers. Local special circumstances, data sovereignty
regulations, and macroeconomic factors also impact Data Center
strategies. Businesses must adapt to the S-curve function of
digital transformation, balancing hardware-related expenses with
the benefits of cloud technology and data center systems.
Macroeconomic factors like exchange rates, business leaders, and
competitors influence decisions. Data loss and speed are critical
concerns for end-users. Online retail and other industries require
customized solutions. National statistical offices track the level
of digitization, providing valuable insights. In summary, Data
Centers must address these challenges to meet the evolving needs of
the digital age.
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challenges - Download a Sample Report
Segment Overview
This data center market report extensively covers market
segmentation by
- Component
- 1.1 IT infrastructure
- 1.2 Power management
- 1.3 Mechanical construction
- 1.4 General construction
- 1.5 Security solutions
- End-user
- 2.1 BFSI
- 2.2 Energy
- 2.3 IT
- 2.4 Others
- Geography
- 3.1 North America
- 3.2 APAC
- 3.3 Europe
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 IT infrastructure- The data center market is
experiencing significant growth due to the increasing demand for
digital transformation and cloud services. Companies are investing
heavily in building and expanding their data centers to support
their growing digital operations. Data centers provide businesses
with the necessary infrastructure to store, manage, and process
large amounts of data efficiently and securely. This investment in
data centers is essential for businesses to remain competitive in
today's digital economy.
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data (2018 -
2022) - Download a Sample Report
Learn and explore more about Technavio's in-depth research
reports
The global Data Center Colocation and Managed Hosting Services
Market is witnessing significant growth, driven by increased demand
for scalable and secure infrastructure solutions. Meanwhile, the
global Containerized and Modular Data Center Market is expanding
rapidly, offering flexibility and cost-efficiency for enterprises.
Additionally, the global Data Center Infrastructure Management
(DCIM) Solutions Market is flourishing as organizations seek
advanced tools for optimizing data center performance and energy
efficiency. These markets collectively address the evolving needs
of modern businesses, ensuring robust, efficient, and adaptive data
center operations.
Research Analysis
The Data Center market is experiencing significant growth due to
the increasing adoption of Artificial Intelligence (AI) and Machine
Learning (ML) technologies, Internet of Things (IoT), Cloud
computing, and Edge computing. These technologies are driving the
demand for IT infrastructure to support real-time data processing,
scalability, and flexibility. Digitalization is also playing a key
role in the growth of the market, as businesses and individuals
rely more on online retail, e-commerce, and personalized data for
storing and analyzing data center workloads. Cloud technology and
data center systems are becoming essential for cost savings and
efficient management of data. However, the risk of lost data and
the need for speed remain critical challenges for the market. Data
Centers are essential for businesses to keep up with the demands of
their customers and stay competitive. On-premises infrastructure
continues to be a popular choice for some businesses due to its
control and security benefits. Overall, the Data Center market is
poised for continued growth as businesses and individuals
increasingly rely on technology for their operations and personal
lives.
Market Research Overview
The Data Center market is experiencing rapid growth due to the
increasing demand for IT infrastructure to support Artificial
Intelligence, Machine Learning, Internet of Things, and Cloud
Computing. Green Data Centers are gaining popularity as businesses
strive for cost savings, scalability, and flexibility. The
Department of Energy is investing in energy-efficient data centers
to reduce carbon emissions. Digitalization is transforming
industries, from manufacturing to finance, with businesses and
individuals relying on real-time data processing for
decision-making. Decentralized Data Centers are
emerging to address local special circumstances and data
sovereignty regulations. Macroeconomic factors, such as the digital
economy, internet penetration, and B2B enterprises'
hardware-related expenses, are driving the market's exponential
trend. Data center systems must provide application performance,
storage requirements, and data security for mobile data use,
internet usage, and cloud data storage. Data analytics and
intelligent buildings are also key areas of focus, with public
cloud, colocation, and hyper-scale platforms leading the way.
Autonomous vehicles, IoT devices, and smart cities require low
latency for optimal performance. Backups and data security are
critical concerns for end-users, with managed hosting and
colocation offering solutions for businesses. Big data and data
analytics are essential for online retail and e-commerce, with
personalized data storing and analyzing data center workloads
becoming increasingly important. Cloud technology is
revolutionizing the industry, with Amazon Web Services leading the
charge. However, lost data and data security breaches remain
significant challenges. The level of digitization, exchange rates,
business leaders, and competitors are also influencing the market's
direction.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Component
-
- IT Infrastructure
- Power Management
- Mechanical Construction
- General Construction
- Security Solutions
- End-user
-
- Geography
-
- North America
- APAC
- Europe
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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