The Global Data Center Market size is predicted to reach $418 billion by 2030, growing at a CAGR of 9.6% during the forecast period 2023-2030; according to the latest market research report published by IndustryARC. Increasing digital transformation across all industry verticals, the sheer volume of internet data traffic, adoption of hybrid cloud architecture and demand for multi-cloud solutions are poised to propel the market growth, finds IndustryARC.
This is in its report titled “Data Center Market Size, Share & Trends Analysis Report by Infrastructure (IT Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Support Infrastructure, Others), by Data Center Type (Colocation, Hyperscale, Edge, Cloud Data Center, Enterprise Data Center, Micro Data Center Others), by Data Center Rating (Tier 1, Tier 2, Tier 3, Tier 4), by Enterprise Size (Larger Enterprises, Small & Medium Enterprises), by End-Use Industry (BFSI, IT & Telecommunication, Government, Healthcare, Retail, Manufacturing, Others), By Geography And Segment Forecasts, 2023 – 2030”.
Increasing Penetration of Internet of Things is Driving the Market Growth:
Increasing penetration of IoT would require space for data analysis and storage. This integration of IoT provides a holistic view of current environmental conditions, resource usage and security to maximize uptime, increase energy efficiency, lower operating costs and prevent data loss and exposure. As IoT-enabled projects are capable of generating massive amounts of useful data, companies are willing to make investments in building new data centers which fuel the Data Center Market growth.
Data Center Market 2023-2030: Segmentation
|By Data Center Type
|By Enterprise Size
|By End-use Industry
Data Center Market Report – Key Takeaways:
- The Emergence of Green Data Centers is Poised to Drive Data Center Market Growth
According to the Department of Energy, data centers directly account for about 2% of the total electricity consumed in the U.S. Green data center. With more Data Centers coming up, this contribution can go high as they utilize non-renewable energy sources for running their hardware & supporting the Data Center infrastructure.
- Colocation Data Centers to register the fastest growth:
Based on Data Center Type, the colocation data centers segment is analyzed to grow at the highest CAGR of 10.3% during the forecast period 2023-2030. The colocation data center offers businesses more control over their technology and access to higher data transport. The data collocation centers act as a gateway between on-cloud and on-premises data centers which results in their faster adoption in the Data Center market.
- Data Security Issues Hamper Market Growth
According to Software Testing Help, data security worries 76% of the corporate data centers. Data Security is one of the major factors that hampers the market growth; specially for those data centers which handle huge amounts of crucial information.
- Burgeoning Opportunities in IT Sector:
There is a high internet penetration in e-commerce & IoT-connected devices, and strong base of IT and ITeS companies. With this, there would not only be a huge market potential for the data center industry but also has an extreme competitive factor of production/ operations that provide huge demand for opportunities in the data-driven centers.
Key Opportunity Analysis:
Integration of Cloud Computing Requires Data Centers
Cloud computing enables businesses to store, manage and process critical data by utilizing remote servers hosted on the internet. Cloud data centers processed 94 percent of all workloads in 2021. The growing volume of data generated by websites and mobile apps, as well as the increased emphasis on delivering customer-centric applications to provide customer satisfaction, are driving the demand for data centers.
By 2025, it is set to cross 100 zettabytes of data which would be stored in the cloud. Such increasing penetration of cloud computing augments the Data Center Market Growth.
Automation of Business Processes
Data centers help enterprises to automate their business process and further expand their network while cutting down operational costs. More than 50% of the global organizations intend to use automation to boost their employee productivity and performance.
As a result, organizations are investing in building data centers to monitor and manage processes with centralized control and automate reporting and visualization of data. Such factors are fueling the growth of the Data Center Market.
Deployment of 5G infrastructure
5G Services would drive exponential growth in data consumption. For example, Cisco reports that 5G would support more than 10% of the world’s mobile connections by 2023, with an average speed of 575 Mbps which is 13 times faster than the average mobile connection today.
5G offers faster access to information, which would lead to more investments in data center infrastructure. As more data becomes latency-sensitive and demands faster access, the arrival of 5G requires data centers to be constructed in dense urban areas.