Data Center Market Size, Industry Share, Overview & Forecast, 2024-2032
Data Center Market Size, Trends & Industry Report (2024 - 2032)

Data Center Market Share, Size, Trends, Industry Analysis Report, By Type (Hyperscale, Colocation, Edge, and Others); By Component; By Enterprise Size; By End-User; By Region; Segment Forecast, 2024- 2032

  • Published Date:Jan-2024
  • Pages: 118
  • Format: PDF
  • Report ID: PM3871
  • Base Year: 2023
  • Historical Data: 2019-2022

Report Outlook

The global data center market size and share is projected to witness robust growth. It was valued at USD 253.37 billion in 2023 and is projected to grow to 675.96 Billion By 2032, exhibiting a CAGR of 11.50% over the forecast period, 2024- 2032. 

The data center provides facilities and services for the centralized storage, processing, management, and distribution of data and information. Data centers are purpose-built facilities designed for networking equipment, house computer systems, storage systems, and servers, all of which are essential for the operation of various digital services, applications, and business operations.

A data center is a physical place that holds computing machines and their affiliated hardware tools. It possesses the computing infrastructure that IT systems need, such as data storage drives, servers, and network equipment. It is the physical structure that holds any company’s digital data. The scale and quantity of equipment needed also rise dramatically as the business and IT activities expand. Maintaining equipment that is dispersed across multiple branches and locations can be challenging. Instead, businesses utilize data centers to locate centrally and affordably manage their devices, which expands the data center market size.

Moreover, there are various sorts of data center structures, and a single enterprise can utilize more than one kind of data center, depending on business requirements and workloads. Different types of data centers include public cloud data centers, enterprise (on-premises) data centers, and, managed data centers and colocation facilities.

Data Center Market Size

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In today's digital landscape, data centers serve as the core of contemporary technological infrastructure. These specialized facilities are meticulously engineered to house, oversee, process, and distribute extensive volumes of crucial information essential for the functioning of businesses, institutions, and governments on a global scale. As the cornerstone of the digital realm, data centers play a crucial role in facilitating the smooth transmission of information worldwide.

Data centers serve as the nerve center for a wide array of digital operations. They store everything from personal emails to massive enterprise databases, streaming content for entertainment platforms, and the complex algorithms that power artificial intelligence systems. Beyond storage, data centers enable real-time processing of transactions, support cloud computing services, and host critical applications for businesses and public services.

  • For instance, In October of 2022, Intel Corp collaborated with Alphabet Inc's Google Cloud and unveiled a jointly developed chip poised to enhance both security and operational efficiency within data centers.

One of the primary advantages of centralized data centers is their ability to ensure data availability and accessibility. Redundant power supplies, robust security measures, and climate-controlled environments safeguard against disruptions, guaranteeing uninterrupted services. This reliability is especially crucial for industries such as finance, healthcare, and emergency services, where downtime can have dire consequences.

The research study provides a comprehensive analysis of the industry, assessing the market on the basis of various segments and sub-segments. It sheds light on the competitive landscape and introduces data center market key players from the perspective of market share, concentration ratio, etc. The study is a vital resource for understanding the growth drivers, opportunities, and challenges in the industry. 

Data Center Market Size

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Furthermore, data centers empower the execution of big data analytics and machine learning algorithms. These cutting-edge technologies hinge on substantial computational capabilities and a service centralized data centers deliver proficiently. This capability empowers businesses to garner invaluable insights from colossal datasets.

Industry Dynamics

Growth Drivers

The rapid adoption of cloud computing service

The exponential growth of digital data creation, fueled by the proliferation of internet-connected devices and the advent of the Internet of Things (IoT), necessitates larger, more efficient data storage solutions. Additionally, the rapid adoption of cloud computing services and the increasing reliance on virtualization technologies have further augmented the need for data centers.

The increasing usage of various technologies such as 5G, edge computing, and quantum computing are driving the expansion of data center infrastructure. Also, the arrival of 5G networks demands a sturdy network of data centers proficient in managing the colossal volumes of data generated by high-speed, low-latency mobile connectivity. Conversely, edge computing prioritizes the processing of data in close proximity to its origin, mandating a mix of smaller, scattered data centers in conjunction with larger centralized facilities.

Report Segmentation

The market is primarily segmented based on type, component, enterprise size, end-user, and region.

By Type

By Component

By Enterprise Size

By End-User

By Region

  • Hyperscale
  • Colocation
  • Edge
  • Others                                                       
  • Solution
  • Services
  • Large Enterprises
  • Small & Medium Enterprises (SMEs)
  • IT & Telecom
  • BFS
  • Government
  • Energy & Utilities
  • Others
  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Netherlands, Spain, Russia)
  • Asia Pacific (Japan, China, India, Malaysia, Indonesia, South Korea)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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By Type Analysis

The colocation segment is expected to witness the fastest growth during the forecast period.

The colocation segment is expected to witness the fastest growth during the forecast period. Colocation data centers are gaining popularity as businesses recognize the numerous advantages of leasing space rather than constructing their own data center infrastructure. The intricacies of infrastructure facilities are on the rise, primarily due to the integration of technologies such as networks and connectivity devices.

Colocation services allow businesses to share the costs of data center infrastructure, including space, power, cooling, and security, with other tenants. It significantly reduces the capital expenditure required to build and maintain a private data center.

Further, colocation providers offer scalable solutions, allowing businesses to easily expand or downsize their IT footprint as their needs change. Its flexibility is crucial in today's dynamic business environment.

By Component Analysis

The services segment is expected to witness the highest growth during the forecast period.

The services segment is expected to witness the highest growth during the forecast period due to the evolving complexities, security concerns, and technological advancements within data center environments. Specialized services are essential for businesses to navigate this dynamic landscape and extract maximum value from their data center investments.

Moreover, as data centers become more sophisticated and integrate advanced technologies like cloud computing, virtualization, and edge computing, businesses require specialized services to design, implement, and manage these complex environments. Hence, these factors are providing significant growth in the data center market.

By Enterprise Size Analysis

Large enterprises segment held the largest market share in 2022

In 2022, the large enterprises segment held the largest market share. The evolution from traditional, on-premises physical servers to virtual network-based data centers is a consequence of the remarkable progress in multi-cloud computing. This transformation is propelling the expansion of data centers on a global scale. In the modern enterprise landscape, data centers are equipped to establish robust communication links with multiple locations, encompassing both cloud computing platforms and on-premises infrastructure. This adaptability ensures that the data center remains a dynamic and responsive nucleus for the enterprise's digital operations.

Regional Insights

North America region dominated the largest market share in 2022

In 2022, the North American region dominated the largest market. It is majorly attributed as a hub for technological innovation, with a pronounced appetite for cutting-edge technologies such as cloud computing and the Internet of Things (IoT). These advancements necessitate robust data center facilities capable of managing escalating intricacies. Hence creating growth opportunities in this region.

The U.S. has witnessed a notable surge in the adoption of hyper-scale platforms. As a result, offering data center services tailored to the requirements of these hyper-scale platforms has become imperative for meeting the evolving needs of the U.S. tech landscape.

The Asia-Pacific region is expected to be the fastest growing, with a healthy CAGR during the projected period. Many countries in this region are actively engaged in digital transformation initiatives across various industries. It involves the adoption of advanced technologies like cloud computing, IoT, AI, and big data analytics, all of which require robust data center infrastructure.

Also, emerging economies in the region, such as India, China, and Southeast Asian nations, are experiencing significant economic growth. This growth is generating increased demand for digital services, driving the need for data centers.

Key Market Players & Competitive Insights

The data center market needs to be more cohesive and is anticipated to witness competition due to several players' presence. Major service providers in the market are constantly upgrading their technologies to stay ahead of the competition and to ensure efficiency, integrity, and safety. These players focus on partnership, product upgrades, and collaboration to gain a competitive edge over their peers and capture a significant market share.

Some of the major players operating in the global market include:

  • Amazon Web Services (AWS)
  • Cisco Systems, Inc.
  • Dell Technologies, Inc.
  • Equinix, Inc.
  • Google LLC
  • Hewlett Packard Enterprise (HPE)
  • IBM Corporation
  • Microsoft Corporation
  • NTT Communications Corporation
  • Oracle Corporation
  • Rackspace Technology, Inc.
  • Schneider Electric SE
  • Siemens AG
  • Tencent Holdings Limited
  • VMware, Inc.

Recent Developments

  • In November 2022, Equinix, Inc., a global digital infrastructure provider, and VMware, Inc. revealed an expanded global partnership. This collaboration aims to deliver cutting-edge digital infrastructure and multi-cloud services. Together, they launched VMware Cloud on Equinix Metal, a novel distributed cloud service designed to offer enterprise applications a more secure, cost-effective, and efficient cloud solution.
  • In August 2022, Microsoft unveiled plans for a new data center zone in Qatar. This development is poised to play a pivotal role in providing Qatar's businesses, consumers, and partners with access to resilient, highly available, and dependable cloud services. It is anticipated to catalyze digital transformation efforts and foster greater adoption of cloud technology in the region.

Data Center Market Report Scope

Report Attributes

Details

Market size value in 2024

USD 281.94 billion

Revenue Forecast in 2032

USD 675.96 billion

CAGR

11.50% from 2024 – 2032

Base year

2023

Historical data

2019 – 2022

Forecast period

2024 – 2032

Quantitative units

Revenue in USD billion and CAGR from 2024 to 2032

Segments Covered

By Type, By Component. By Enterprise Size, By End-User, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America; Middle East & Africa

Customization

Report customization as per your requirements with respect to countries, regions, and segmentation.

Delve into the intricacies of the data center market landscape with the latest statistical insights for 2024, meticulously crafted by Polaris Market Research Industry Reports. Uncover the market's share, size, and revenue growth rate, supplemented by a forward-looking market forecast until 2032 and a retrospective glance at its history. Elevate your understanding of this dynamic industry by securing a complimentary PDF download of the sample report and stay ahead in the ever-evolving realm of data center.

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