Published on: August 07, 2024
The data center market is projected to be valued at USD 731.77 billion in 2027 with a CAGR of 12.73% between 2022 and 2027. The growth of the market depends on several factors, including the exponential growth of internet traffic, the rise in the adoption of multi-cloud and network upgrades to support 5G, the demand planning and expansion by hyper scalers, and the growing demand among SMEs.
Data centers are centralized facilities for computing, processing, and storage. The data center market’s growth is driven by the increasing demand for IT infrastructure to support digitization, remote work trends, and the proliferation of over-the-top (OTT) services. With the rise of IoT technologies, machine learning and AI, and big data analytics, data centers play a crucial role in managing and processing vast amounts of data generated by various industries.
The data center market offers a variety of service delivery methods according to customer needs, including on-premises, colocation, and cloud operations. Many industries utilize data center services, such as IT & telecom, healthcare, and BFSI. Data centers provide a range of services including data storage, networking, and disaster recovery solutions.
The adoption of renewable energy and carbon-neutral practices to reduce greenhouse gas emissions is impacting data center design and operation. The rise of hyperscale data centers, colocation services, and the implementation of AI-driven technologies for data management and security are prominent trends in the market.
The growing demand for IT equipment and supporting infrastructure is driving market growth, as is the need for disaster recovery solutions and online learning. The shift towards contactless payments and online services is also accelerating the demand for secure and reliable data center solutions.
The data center market faces challenges such as high capital and operational expenditure associated with building construction, IT hardware, software, and maintenance. It can also be difficult for data center operators to ensure security, reliability, and compliance with regulations.
Service providers are capitalizing on the growing need for AI-driven analytics, 5G-enabled services, and VR applications that require high-performance data center infrastructure. The market is also witnessing demand for cloud adoption, colocation services, and edge computing solutions.
North America is projected to account for 36% of the global market’s growth by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
In this region, enterprises are increasingly adopting cloud solutions from hyper-scale providers such as AWS, Microsoft, and Oracle to meet computing capacity requirements with minimum expenditure. The US and Canada have been at the forefront of the adoption of new technologies, and this trend is expected to continue in the coming years.
Technavio's data center industry reports monitor the leading players in the global market along with their current and forecasted market share. Our analysis covers regional and global companies. Some of the top companies covered in our data center market reports include:
In order to provide you with a comprehensive view of the data center industry, our experts analyze the market from many different perspectives. Our reports help identify opportunities, risks, key competitors, and more, helping you make timely, informed decisions to optimize your position in the market.
Technavio reports insights include:
Develop a deeper understanding of the data center market with Technavio’s comprehensive market research reports. We provide the latest information on key industry dynamics, including global and regional market forecasts, internal and external pressure points, the vendor landscape, and more.
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