Data Centers Market by Component, Type, Data Center Rating, End-User

List of Tables

[181 Pages Report] The Data Centers Market size was estimated at USD 102.09 billion in 2023 and expected to reach USD 113.14 billion in 2024, at a CAGR 10.92% to reach USD 211.00 billion by 2030.

Data centers are specialized facilities that include computer systems, telecommunications, and storage systems, along with the necessary components for power supply, data communication connections, environmental controls (including air conditioning and fire suppression), and security devices. These centers serve as critical infrastructure for storing, managing, and disseminating large volumes of data, hosting websites, supporting cloud computing services, and enabling various IT operations for businesses, governments, and other organizations. The growth of the data centers market is propelled by the increasing use of content-based online media services and social media, the rising smart city development, and the need for data center colocation services. However, the high installation and construction cost of data centers and technical and data security issues in data centers hinder their adoption. The emergence of high-capacity hyper scale data centers based on 5G network facilities offers expansion opportunities for the data centers market.

KEY MARKET STATISTICS
Base Year [2023]	USD 102.09 billion
Estimated Year [2024]	USD 113.14 billion
Forecast Year [2030]	USD 211.00 billion
CAGR (%)	10.92%

Component: Need for effective and advanced data center hardware components

Hardware forms the physical backbone of any data center, and this includes servers, storage systems, networking devices, and other physical infrastructure necessary for the operation of data centers. Cooling systems are essential for maintaining an optimal operating temperature within the data center. Networking equipment such as routers, switches, and other devices facilitate communication between the servers within a data center and between the data center and the outside world. Reliable power sources and backup systems (such as uninterruptible power supplies or generators) are critical to ensure that data centers continue to operate during power outages, which is crucial for maintaining the integrity and availability of the data stored within. Servers are the heart of a data center, and they are powerful computers that store, process, and manage data and applications. Storage systems provide a place to store data in various forms (including files, databases, and applications). Services encompass various offerings, from consulting and integration to support and maintenance, aimed at ensuring data centers run smoothly and efficiently. Consulting services help clients plan, design, and implement data center strategies. Through managed services, third-party companies take on the responsibility of managing a data center's day-to-day operations, including maintenance, monitoring, and security. Professional services include a range of services provided by skilled professionals, such as integration services for new systems, training for staff, and ongoing support services. Solutions refer to software and specialized hardware designed to improve data center management and operational efficiency. This includes data center infrastructure management (DCIM), virtualization software, and security solutions.

Type: Increasing demand for cloud data centers due to their ability to provide scalable, flexible, and efficient data storage and computing services

Cloud data centers are virtual data centers hosted on a cloud computing platform, providing scalable resources such as servers, storage, and networking over the Internet. Users access and manage their data and applications without owning physical hardware, offering flexibility and cost savings. Colocation facilities provide businesses space to rent for their servers and other computing hardware. These data centers provide the physical environment to keep the equipment secure and operational, including power supplies, cooling systems, and security measures. Clients benefit from economies of scale, advanced infrastructure, and reduced overhead. Companies own and operate enterprise data centers for personal use, typically on-premises. Enterprise data centers are designed to support business applications and activities, including data storage, processing, and management. Enterprise data centers offer control and security but require significant investment and management. Mega or hyperscale data centers are extensive facilities owned by major tech companies or cloud service providers designed to support vast amounts of data storage and processing needs. Hyperscale data centers are characterized by their massive scale, advanced technologies, and efficiency in operations, supporting large-scale cloud platforms, big data analytics, and internet services.

Data Center Rating: Adoption of Tiers 3 and 4 by larger organizations that require robust, uninterrupted services.

Tier 1 data centers offer the most basic level of infrastructure, with a single path for power and cooling and no built-in redundancy, and they guarantee 99.671% availability. These centers are suitable for small businesses or startups that require a data center but have limited requirements for uptime and redundancy. Enhancing Tier 1, Tier 2 data centers introduces components of redundancy, capable of achieving 99.741% availability. There are redundant critical components, while one distribution path serves the IT equipment. They are appropriate for businesses with slightly higher requirements for data center uptime but are still sensitive to investment levels. Tier 3 facilities offer multiple paths for power and cooling and systems that can be updated or maintained without taking the data center offline, exhibiting a 99.982% availability. They are ideal for larger organizations that require high availability and uptime without going to the extent (and expense) of Tier 4. It i s a common standard for business-critical operations. Tier 4 facilities are fault-tolerant, with 99.995% availability. They feature full redundancy in power and cooling and are designed to withstand substantial system failures. It is essential for mission-critical applications where any downtime could result in significant financial loss or operational disruption. Suits large enterprises and critical government functions.

End-Use Industry: Widening adoption of data centers in IT & telecommunications to enable the vast data traffic flow across global networks

Data centers are essential in the BFSI sector for securing transactions, maintaining financial records, managing customer data, and supporting online banking services. They ensure high levels of data protection and regulatory compliance. Governments utilize data centers for centralizing the storage, management, and dissemination of public records, national security data, and citizen services. They provide the infrastructure for e-governance initiatives, making services more accessible to the public. Data centers in healthcare manage electronic medical records and patient management systems and support telemedicine services. Data centers also play a vital role in ensuring data privacy while enabling healthcare providers to improve patient care through data analytics. The IT & telecommunications sector relies on data centers to host servers and network equipment, support cloud computing, and manage vast amounts of data from Internet and telecommunications services. Manufacturing firms use data centers to manage supply chain information, production planning systems, and product lifecycle management, which helps optimize manufacturing processes and improve product quality through data analysis. In the retail industry, data centers support eCommerce platforms, manage inventory systems, and analyze customer data to enhance shopping experiences. Data centers enable retailers to offer personalized services and ensure seamless online transactions.

Regional Insights

The data centers market is driven by advanced technological infrastructure and the presence of global tech giants in the Americas, particularly in the United States. Canada and Brazil contribute significantly, driven by their growing tech industries and increased internet penetration among their populations. The Americas region witnesses a trend toward green data centers, focusing on sustainability and energy efficiency as environmental regulations tighten and corporate social responsibility grows in importance. The Asia-Pacific region witnesses rapid growth in the data centers market, fueled by digital transformation initiatives in countries including China, India, and Japan. The region benefits from a large and growing internet user base, increasing demand for cloud services, and significant investments in telecommunications infrastructure. The trend toward building hyper-scale data centers, which are massive facilities capable of handling significant amounts of data, is evident in this region, driven by local and international tech companies. The EMEA region exhibits a diverse landscape in the data centers market. Europe strongly focuses on data protection and privacy, guided by regulations such as the General Data Protection Regulation (GDPR), affecting how data centers are managed and where data is stored. The Middle East region showcases increased investment in data centers, driven by the region's strategic geographic location and initiatives to diversify economies away from oil. The African data centers market is showcasing promising growth, fueled by increasing mobile internet access and the digital economy.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Data Centers 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 Centers 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 Centers Market, highlighting leading vendors and their innovative profiles. These include Advanced Micro Devices, Inc., Alibaba Group Holding Limited, Amazon Web Services, Inc., American Tower Corporation, Apple Inc., Arista Networks, Inc., AT&T Inc., Broadcom Inc., China Telecom Corporation Limited, Cisco Systems, Inc., Cologix, Inc., CyrusOne LLC, Cyxtera Technologies, Inc., Dell Technologies Inc., Digital Realty Trust, Inc., Equinix, Inc., Fujitsu Limited, Global Switch Limited, Google LLC by Alphabet Inc., Hewlett Packard Enterprise Company, Hitachi, Ltd., International Business Machines Corporation, IRON MOUNTAIN INCORPORATED, Juniper Networks, Inc., KDDI Corporation, Lenovo Group Ltd., Lumen Technologies, Inc, Meta Platforms, Inc., Microsoft Corporation, Nippon Telegraph and Telephone Corporation, Nvidia Corporation, Oracle Corporation, Rackspace Technology, Inc., Reliance Industries Limited, SAP SE, Telefonaktiebolaget LM Ericsson, Tencent Holdings Ltd., and Verizon Communications Inc..

Market Segmentation & Coverage

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

Component
- Hardware
  - Cooling Systems
  - Networking Equipment
  - Power Supply & Backup
  - Servers
  - Storage Systems

Services
- Consulting Services
- Managed Services
- Professional Services

Solution

Type
- Cloud Data Centers
- Colocation Data Centers
- Enterprise Data Centers
- Mega/Hyperscale Data Centers

Data Center Rating
- Tier 1
- Tier 2
- Tier 3
- Tier 4

End-User
- Automotive
- Banking Financial Services & Insurance
- Gaming & Entertainment
- Government & Education
- Healthcare & Lifesciences
- IT & Telecom
- Manufacturing
- Retail & eCommerce

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 Centers Market?

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

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

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

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

Product Code: MRR-4348D129F9C6

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. Adoption of broadband and internet mediums resulting in IP traffic worldwide
  - 5.1.1.2. Growing usage of content-based online media services and social media
  - 5.1.1.3. Rising smart city development and the need for data center colocation services
- 5.1.2. Restraints
  - 5.1.2.1. High cost of installation and construction of data centers
- 5.1.3. Opportunities
  - 5.1.3.1. Ongoing technological advancements in data centers
  - 5.1.3.2. Growing focus on sustainability in data centers
- 5.1.4. Challenges
  - 5.1.4.1. Technical and data security issues in data centers
5.2. Market Segmentation Analysis
- 5.2.1. Component: Need for effective and advanced data center hardware components
- 5.2.2. Type: Increasing demand for cloud data centers due to their ability to provide scalable, flexible, and efficient data storage and computing services
- 5.2.3. Data Center Rating: Adoption of Tiers 3 and 4 by larger organizations that require robust, uninterrupted services.
- 5.2.4. End-Use Industry: Widening adoption of data centers in IT & telecommunications to enable the vast data traffic flow across global networks
5.3. Market Trend Analysis
- 5.3.1. Presence of major technology companies, and constant innovations to improve the performance of data centers across the Americas
- 5.3.2. Increased internet and mobile usage, coupled with supportive government initiatives across the APAC region
- 5.3.3. Burgeoning government support for establishing sustainability in data center along with exponential investments in ICT infrastructure in the EMEA region
5.4. Cumulative Impact of High Inflation
5.5. Porter's Five Forces Analysis
- 5.5.1. Threat of New Entrants
- 5.5.2. Threat of Substitutes
- 5.5.3. Bargaining Power of Customers
- 5.5.4. Bargaining Power of Suppliers
- 5.5.5. Industry Rivalry
5.6. Value Chain & Critical Path Analysis
5.7. Regulatory Framework Analysis

6. Data Centers Market, by Component

6.1. Introduction
6.2. Hardware
6.3. Services
6.4. Solution

7. Data Centers Market, by Type

7.1. Introduction
7.2. Cloud Data Centers
7.3. Colocation Data Centers
7.4. Enterprise Data Centers
7.5. Mega/Hyperscale Data Centers

8. Data Centers Market, by Data Center Rating

8.1. Introduction
8.2. Tier 1
8.3. Tier 2
8.4. Tier 3
8.5. Tier 4

9. Data Centers Market, by End-User

9.1. Introduction
9.2. Automotive
9.3. Banking Financial Services & Insurance
9.4. Gaming & Entertainment
9.5. Government & Education
9.6. Healthcare & Lifesciences
9.7. IT & Telecom
9.8. Manufacturing
9.9. Retail & eCommerce

10. Americas Data Centers Market

10.1. Introduction
10.2. Argentina
10.3. Brazil
10.4. Canada
10.5. Mexico
10.6. United States

11. Asia-Pacific Data Centers Market

11.1. Introduction
11.2. Australia
11.3. China
11.4. India
11.5. Indonesia
11.6. Japan
11.7. Malaysia
11.8. Philippines
11.9. Singapore
11.10. South Korea
11.11. Taiwan
11.12. Thailand
11.13. Vietnam

12. Europe, Middle East & Africa Data Centers Market

12.1. Introduction
12.2. Denmark
12.3. Egypt
12.4. Finland
12.5. France
12.6. Germany
12.7. Israel
12.8. Italy
12.9. Netherlands
12.10. Nigeria
12.11. Norway
12.12. Poland
12.13. Qatar
12.14. Russia
12.15. Saudi Arabia
12.16. South Africa
12.17. Spain
12.18. Sweden
12.19. Switzerland
12.20. Turkey
12.21. United Arab Emirates
12.22. United Kingdom

13. Competitive Landscape

13.1. Market Share Analysis, 2023
13.2. FPNV Positioning Matrix, 2023
13.3. Competitive Scenario Analysis
- 13.3.1. Strategic Expansion through Data Centre Acquisition by T4 Group a Move to Enhance Business Empowerment
- 13.3.2. OData's Strategic Expansion in Mexico Elevating Local Digital Infrastructure with Two New Data Centre Campuses
- 13.3.3. Amazon's AWS Expands its Global Footprint with a Major Investment in Saudi Arabia
- 13.3.4. Edged Energy Revolutionizing the U.S. with Ultra-efficient, AI-ready Data Centers
- 13.3.5. Ardent Data Centers Expands Reach with Strategic Acquisition of Pittsburgh Facility
- 13.3.6. Google's Strategic USD 1 Billion Investment in UK Data Centre Infrastructure
- 13.3.7. LightEdge Expands Portfolio with Strategic Acquisition of Advanced Data Center in Minneapolis
- 13.3.8. RIL International and Partners Unveil Cutting-edge Data Centre in Chennai, Expanding India's Digital Infrastructure
- 13.3.9. Digital Realty Elevates India's Data Center Landscape with the Launch of MAA10 in Chennai
- 13.3.10. Vantage Data Centers Secures USD 6.4 Billion to Fuel Expansion Amid Soaring Cloud Services and AI Demand
- 13.3.11. EQT Infrastructure Partners with EdgeConneX for Global Hyperscale Data Center Expansion

14. Competitive Portfolio

14.1. Key Company Profiles
14.2. Key Product Portfolio