Data Center Outsourcing Market by Type of Services, Enterprise Size, Vertical

Description

List of Tables

[184 Pages Report] The Data Center Outsourcing Market size was estimated at USD 145.50 billion in 2023 and expected to reach USD 156.10 billion in 2024, at a CAGR 7.49% to reach USD 241.29 billion by 2030.

Data center outsourcing is a strategic business model where organizations delegate the management and operation of their data center facilities to a specialized third-party service provider. This model encompasses the outsourcing of hardware, software, and personnel responsibilities that are integral to the running and maintenance of data center operations. The primary aim is to optimize operational efficiencies, mitigate risks, and reduce capital and operational expenditures associated with running an in-house data center. The growing inclination towards cloud services by enterprises for scalability, flexibility, and cost-effectiveness is significantly driving market growth. In addition, Organizations continuously seek ways to reduce operational costs, propelling the adoption of outsourcing models. However, the fear of data breaches and loss of control over data is a major concern for clients, affecting their decision to outsource. Furthermore, Innovations in IT infrastructure, such as edge computing and 5G, are expected to offer new prospects for the data center outsourcing market.

KEY MARKET STATISTICS
Base Year [2023]	USD 145.50 billion
Estimated Year [2024]	USD 156.10 billion
Forecast Year [2030]	USD 241.29 billion
CAGR (%)	7.49%

Type of Services: Growing utilization of colocation services for the security and reliability of a data center

Cloud hosting involves providing computing resources from cloud computing companies to host data, services, & solutions. This hosting model provides scalability, reliability, and flexibility, which are vital for businesses that experience fluctuating or unpredictable traffic. Cloud hosting is ideal for businesses seeking reduced IT operational costs, scalability on-demand, and enhanced performance. Colocation services involve renting space for servers and other computing hardware at a third-party provider's data center. This model offers businesses the physical infrastructure necessary without the capital expenditure of building their own data center facility. Managed hosting is a service model where clients lease dedicated servers and associated hardware from a hosting provider but with added services, including support, maintenance, and management by the provider's staff.

Vertical: Increasing digitalization across healthcare & life sciences accelerating adoption of data center outsourcing services

In the BFSI sector, data center outsourcing is crucial for handling vast volumes of sensitive financial data while ensuring compliance with stringent regulatory standards. Companies prioritize data protection, high availability, and disaster recovery capabilities. Government and defense entities emphasize on security, sovereignty, and compliance with national regulations for data center outsourcing. Providers offer government-specific cloud solutions that are tailored to these needs. This sector prioritizes data center outsourcing services that offer robust data protection, especially concerning patient confidentiality under regulations such as HIPAA in the United States. Flexibility and scalability are also critical due to the evolving nature of healthcare data. For IT and telecommunications, high bandwidth, low latency, and scalability are the central needs for data center outsourcing. Manufacturing companies are increasingly adopting data center outsourcing to facilitate IoT, automation, and big data analytics. The emphasis is on reliability, uptime, and industrial-grade security. The media & entertainment industry requires data center outsourcing solutions that support high-content volumes, rapid scalability for distribution, and low-latency streaming.

Regional Insights

The American region market is characterized by high demand for advanced and scalable IT infrastructure solutions. The region is witnessing significant investments in green data center technologies, reflecting a growing emphasis on sustainability. Companies are increasingly prioritizing security and compliance, driving demand for providers that offer robust data protection measures. The data center outsourcing market in the EU is shaped by stringent data protection regulations, including GDPR. There is a strong focus on data sovereignty and security. European customers prioritize providers that offer transparent compliance with local and regional regulations alongside the ability to support sustainable operations. In the Middle East, the market is evolving with a growing emphasis on digital transformation across sectors. Customers in the Middle East value scalability and flexibility in outsourcing arrangements. The APAC data center outsourcing market is booming, fueled by businesses' digital transformation initiatives and the government's push for cloud computing. The countries across the region are seeing rapid advancements in AI and big data technologies, driving the need for high-performance computing infrastructure.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Data Center Outsourcing Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Data Center Outsourcing Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Key Company Profiles

The report delves into recent significant developments in the Data Center Outsourcing Market, highlighting leading vendors and their innovative profiles. These include Accenture PLC, Amazon Web Services, Inc., Atos SE, Bridge Data Centres, Capgemini SE, CGI Inc., Cognizant Technology Solutions Corporation, Dell Inc., Ensono, LLC, Equinix, Inc., Fujitsu Limited, HCL Technologies Limited, Hitachi, Ltd., HP Inc., Infosys Limited, International Business Machines Corporation, Kyndryl Inc., Lumen Technologies, Inc., Microsoft Corporation, NTT DATA Corporation, Oracle Corporation, T-Systems International GmbH by Deutsche Telekom AG, Tata Consultancy Services Limited, Tech Mahindra Limited, Unisys Corporation, and Verizon Communications Inc..

Market Segmentation & Coverage

This research report categorizes the Data Center Outsourcing Market to forecast the revenues and analyze trends in each of the following sub-markets:

Type of Services
- Cloud Hosting
- Colocation Services
- Managed Hosting

Enterprise Size
- Large Enterprises
- Small & Medium Enterprises

Vertical
- BFSI
- Government & Defense
- Healthcare & Life Sciences
- IT & Telecommunications
- Manufacturing
- Media & Entertainment

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

The report offers valuable insights on the following aspects:

1. Market Penetration: It presents comprehensive information on the market provided by key players.

2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.

3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.

4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.

5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

1. What is the market size and forecast of the Data Center Outsourcing Market?

2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Data Center Outsourcing Market?

3. What are the technology trends and regulatory frameworks in the Data Center Outsourcing Market?

4. What is the market share of the leading vendors in the Data Center Outsourcing Market?

5. Which modes and strategic moves are suitable for entering the Data Center Outsourcing Market?

Product Code: MRR-4E447E7FCAB0

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Growing inclination towards cloud services by enterprises
  - 5.1.1.2. Increasing demand for cost reduction and operational efficiency from enterprizes
  - 5.1.1.3. Rise in the number of hyper-scale data centers for analytic applications
- 5.1.2. Restraints
  - 5.1.2.1. Lack of expertise and skilled professionals
- 5.1.3. Opportunities
  - 5.1.3.1. Technological innovations in edge computing and 5G
  - 5.1.3.2. Integrating automation and artificial intelligence for efficient data center management & predictive maintenance
- 5.1.4. Challenges
  - 5.1.4.1. Concern associated with the data breaches and loss of control over data
5.2. Market Segmentation Analysis
- 5.2.1. Type of Services: Growing utilization of colocation services for the security and reliability of a data center
- 5.2.2. Vertical: Increasing digitalization across healthcare & life sciences accelerating adoption of data center outsourcing services
5.3. Market Disruption Analysis
5.4. Porter's Five Forces Analysis
- 5.4.1. Threat of New Entrants
- 5.4.2. Threat of Substitutes
- 5.4.3. Bargaining Power of Customers
- 5.4.4. Bargaining Power of Suppliers
- 5.4.5. Industry Rivalry
5.5. Value Chain & Critical Path Analysis
5.6. Pricing Analysis
5.7. Technology Analysis
5.8. Patent Analysis
5.9. Trade Analysis
5.10. Regulatory Framework Analysis

6. Data Center Outsourcing Market, by Type of Services

6.1. Introduction
6.2. Cloud Hosting
6.3. Colocation Services
6.4. Managed Hosting

7. Data Center Outsourcing Market, by Enterprise Size

7.1. Introduction
7.2. Large Enterprises
7.3. Small & Medium Enterprises

8. Data Center Outsourcing Market, by Vertical

8.1. Introduction
8.2. BFSI
8.3. Government & Defense
8.4. Healthcare & Life Sciences
8.5. IT & Telecommunications
8.6. Manufacturing
8.7. Media & Entertainment

9. Americas Data Center Outsourcing Market

9.1. Introduction
9.2. Argentina
9.3. Brazil
9.4. Canada
9.5. Mexico
9.6. United States

10. Asia-Pacific Data Center Outsourcing Market

10.1. Introduction
10.2. Australia
10.3. China
10.4. India
10.5. Indonesia
10.6. Japan
10.7. Malaysia
10.8. Philippines
10.9. Singapore
10.10. South Korea
10.11. Taiwan
10.12. Thailand
10.13. Vietnam

11. Europe, Middle East & Africa Data Center Outsourcing Market

11.1. Introduction
11.2. Denmark
11.3. Egypt
11.4. Finland
11.5. France
11.6. Germany
11.7. Israel
11.8. Italy
11.9. Netherlands
11.10. Nigeria
11.11. Norway
11.12. Poland
11.13. Qatar
11.14. Russia
11.15. Saudi Arabia
11.16. South Africa
11.17. Spain
11.18. Sweden
11.19. Switzerland
11.20. Turkey
11.21. United Arab Emirates
11.22. United Kingdom

12. Competitive Landscape

12.1. Market Share Analysis, 2023
12.2. FPNV Positioning Matrix, 2023
12.3. Competitive Scenario Analysis
- 12.3.1. Google to Invest USD 1 Billion in United Kingdom Data Centre
- 12.3.2. NTT DATA Launches Security Management Outsourcing Service
- 12.3.3. Rimini Street formally launches Rimini ONE, an end-to-end outsourcing solution
12.4. Strategy Analysis & Recommendation

13. Competitive Portfolio

13.1. Key Company Profiles
13.2. Key Product Portfolio