Data Center Transformation Market by Offering, Tier Type (Tier 1, Tier 2, Tier 3), Data Center Size, Vertical, End-User

Description

List of Tables

[196 Pages Report] The Data Center Transformation Market size was estimated at USD 12.96 billion in 2023 and expected to reach USD 14.66 billion in 2024, at a CAGR 13.19% to reach USD 30.86 billion by 2030.

The data center transformation market encompasses various services, technologies, and solutions to modernize and enhance data centers' efficiency, agility, security, and performance. This market serves IT and telecom, banking, financial services and insurance (BFSI), healthcare, retail & eCommerce, and government & defense organizations. Increasing data center traffic due to rising communication devices and enterprises using SaaS-based applications encourages a trend of shifting to cloud services from client to server, driving market growth. In addition, growing expenditure on data center technologies has led organizations to adopt virtualization techniques for cost-effective operational expenses and flexibility solutions. High upfront costs of modernizing existing infrastructures deter smaller businesses from adopting data center transformations. Issues pertinent to security and privacy can hinder the seamless implementation of new technologies and methodologies. Innovations and research areas within the data center transformation technologies and relocation or consolidation of data centers across different platforms for better resource utilization create significant growth opportunities.

KEY MARKET STATISTICS
Base Year [2023]	USD 12.96 billion
Estimated Year [2024]	USD 14.66 billion
Forecast Year [2030]	USD 30.86 billion
CAGR (%)	13.19%

Offering: Growing demand for consolidation services to reduce costs and complexity

Data center transformation services play a crucial role in optimizing the overall performance, scalability, and efficiency of enterprises' IT infrastructure. These services include automation, consolidation, infrastructure management, and optimization services. Automation services enhance operational efficiency by automating repetitive tasks, reducing human error, and expediting processes in data centers. Consolidation services facilitate the merging of existing IT resources into more efficient systems that require less physical space and maintenance. Businesses aiming to reduce costs, lower their carbon footprint, or simplify their IT environment should consider these services. Infrastructure management services encompass the monitoring, maintaining, and optimizing data center hardware and software components. Optimization services concentrate on boosting overall data center efficiency through optimized resource utilization via improved hardware and software configurations. Consolidation services reduce costs and complexity; infrastructure management services improve performance and uptime, and optimization services maximize resource utilization. Software plays an equally important role in data center transformation by providing essential tools for monitoring, managing, analyzing, and securing various components within the IT infrastructure.

Tier Type: Wider adoption Tier-3 or Tier-4 data centers for large enterprises

Tier 1 data centers offer basic functionality with a 99.671% uptime, suitable for small businesses or startups due to lower costs and simplicity. Tier 2 data centers provide higher redundancy with approximately 99.741% uptime, featuring redundant power supply components to protect against equipment failures. This tier serves medium-sized businesses seeking a balance between affordability and reliability. Large enterprises requiring high availability and redundancy opt for Tier 3 data centers offering at least 99.982% uptime. These facilities ensure high fault tolerance levels and have dual-powered equipment and multiple distribution paths for power and cooling systems. Tier 5 is an emerging concept that provides next-generation data center solutions with enhanced security features, sustainability measures, and modularity for rapid scalability. Choosing the appropriate tier largely depends on cost efficiency, redundancy levels, and infrastructure capabilities suited to an organization's specific requirements. Small-to-medium businesses can rely on the cost-effectiveness offered by Tier-1 or Tier-2 facilities without heavy compromise on uptime, while large enterprises may opt for Tier-3 or Tier-4 when better guarantees are crucial.

Data Center Size: Expanding acceptance of small data centers by small businesses, as affordable option

Large data centers cater to enterprises with substantial storage requirements, prioritizing redundancy, security, and energy efficiency. They typically have a floor space of more than 50,000 square feet and require high-capacity cooling systems, power supplies, and connectivity solutions to manage the massive volume of data traffic generated by enterprises or hyperscale cloud providers. Mid-sized data centers generally range between 5,000 to 50,000 square feet in floor space and are designed to cater to the needs of medium-sized businesses or regional offices of large corporations. They serve small-to-medium enterprises (SMEs) by balancing capacity with cost-effectiveness. Small data centers typically have less than 5,000 square feet of floor space and cater to small businesses or startups that require limited infrastructure support. Small data centers target organizations with limited requirements while ensuring affordability without compromising key features such as security, redundancy, and scalability. Large enterprises benefit from the vast capacity provided by large facilities; SMEs can capitalize on cost-effective solutions offered by mid-sized establishments; small businesses have access to affordable options through smaller-sized facilities tailored to their specific requirements. Manufacturers or providers continue innovating within each segment, improving efficiency, reliability, and scalability to meet the increasing demand for data storage and processing abilities.

End-User: Increasing implementation by cloud service providers large-scale deployment

Cloud service providers (CSPs) necessitate scalable, high-performance data centers with global connectivity to support diverse workloads. Colocation providers concentrate on delivering secure data center space with redundant power and cooling systems at competitive prices. Enterprises seek tailored data center transformation solutions that address specific business needs such as cost savings, enhanced performance, improved security, and regulatory compliance. Recognizing the preferences and priorities of each end-user segment is vital for evaluating opportunities in the data center transformation market. Recent developments demonstrate that all segments adopt innovative technologies to enhance efficiency while addressing dynamic demands in an ever-changing digital environment.

Vertical: Rising utilization across manufacturing industries for complex supply chain management

The BFSI sector demands reliable and secure data center infrastructure to support the increasing digitization of financial services driven by fintech innovations, rising online transactions, and stringent regulatory compliance requirements. Data center transformation in the energy sector focuses on managing large-scale simulations and real-time analytics for smart grid systems that improve power generation, distribution efficiency, and sustainability. Governments worldwide prioritize secure and resilient data center infrastructures to store sensitive information and maintain national security-related applications. Data center transformation is essential in the healthcare sector as it plays a crucial role in managing electronic health records (EHR) and meeting the escalating storage demands of telemedicine services, which are experiencing exponential growth due to the increased usage of IoT devices. IT and telecom rely heavily on data centers for managing vast amounts of data from mobile communication, internet usage, and cloud services. Manufacturing industries require efficient data centers to handle complex supply chain management systems, IoT-enabled devices, and real-time analytics for Industry 4.0 implementation. Retailers invest in transforming their data center infrastructures to enhance customer experience using AI-driven personalization solutions while supporting eCommerce operations growth. Data center transformation plays a vital role in transportation by facilitating passenger information systems management, fleet tracking systems optimization, and traffic monitoring network improvement efforts.

Regional Insights

In the Americas, North America constitutes the most significant share of the data center transformation market due to the widespread adoption of cloud computing, advanced IT infrastructure, and the presence of major data center technology providers. The United States leads in demand for data center transformation services owing to growing awareness about energy efficiency among enterprises and increasing investments in green data centers. South America is also experiencing growth owing to rising internet penetration rates and governments' efforts to develop digital economies in Brazil, Mexico, and Argentina. Europe experiences considerable market growth due to its well-established IT infrastructure network and stringent environmental regulations encouraging data center modernization initiatives. Countries such as Germany, the UK, France, and the Netherlands contribute significantly towards regional growth through increased adoption of advanced technologies such as AI-driven automation and IoT-based monitoring systems. Middle Eastern countries are also witnessing an upsurge in demand for data center transformation services driven by initiatives to transform city-wide IT infrastructure by leveraging cutting-edge digital solutions. Africa is also witnessing a growing demand for efficient data centers due largely to increasing Information and communications technology (ICT) adoption rates across industries. The Asia-Pacific region has emerged as a rapidly growing data center transformation market, primarily driven by factors such as booming digital economies, favorable government policies, and accelerated adoption of cloud services. Countries such as China, India, Japan, and Australia are at the forefront of driving regional demand with substantial investments in data center infrastructure development projects. The rapid adoption of technologies such as 5G and IoT across various industries is expected to further fuel DCT demand in APAC over the coming years.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Data Center Transformation 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 Transformation 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 Transformation Market, highlighting leading vendors and their innovative profiles. These include ABB Ltd., Accenture PLC, AdaniConneX by Adani Group, Alibaba Group Holding Limited, Arista Networks, Inc., Atos SE, BMC Software, Inc., Bytes Technology Group PLC, Capgemini SE, Cisco Systems, Inc., Cognizant Technology Solutions Corporation, Criticalcase Srl, Dell Technologies Inc., DXC Technology Company, DynTek, Inc., e-Zest Solutions, Eaton Corporation PLC, Emerson Electric Co., Equinix, Inc., exIT Technologies, Fujitsu Limited, General Datatech, L.P., Google LLC by Alphabet Inc., HCL Technologies Limited, Hewlett Packard Enterprise Development LP, Hitachi, Ltd., Honeywell International Inc., Huawei Technologies Co., Ltd., InknowTech Pvt. Ltd., Intel Corporation, International Business Machines Corporation, Johnson Controls International PLC, Juniper Networks, Inc., Lenovo Group Limited, Lunavi, Inc., Mantis Innovation Group, LLC, MetalSoft Cloud Inc., Micro Focus International Limited by OpenText Corporation, Microsoft Corporation, Mindteck, NetApp, Inc., Nippon Telegraph and Telephone Corporation, Oracle Corporation, Redwood Software, Inc., SAP SE, Schneider Electric SE, Siemens AG, Sunbird Software, Inc., Tech Mahindra Limited, Tencent Holdings Ltd., VMware, Inc., and Wipro Limited.

Market Segmentation & Coverage

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

Offering
- Services
  - Automation Services
  - Consolidation Services
  - Infrastructure Management Services
  - Optimization Services

Software

Tier Type
- Tier 1
- Tier 2
- Tier 3
- Tier 4
- Tier 5

Data Center Size
- Large Data Centers
- Midsized Data Centers
- Small Data Centers

Vertical
- Banking, Financial Services, & Insurance
- Energy
- Government & Defense
- Healthcare
- IT & Telecom
- Manufacturing
- Retail & Consumer Goods
- Transportation

End-User
- Cloud Service Providers
- Colocation Providers
- Enterprises

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 Transformation Market?

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

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

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

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

Product Code: MRR-2D6E676CAB1E

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. Increasing data center traffic owing to rising communication devices and enterprises using SaaS-based applications
  - 5.1.1.2. Rising trend of shift to cloud services from client or server
  - 5.1.1.3. Growing expenditure on data center technologies
- 5.1.2. Restraints
  - 5.1.2.1. Low return on investment over low load data centers
- 5.1.3. Opportunities
  - 5.1.3.1. Continuous advancements in data center transformation technologies
  - 5.1.3.2. Relocation or consolidation of data centers to enhance functionality
- 5.1.4. Challenges
  - 5.1.4.1. Issues pertinent to security and privacy in data center transformation
5.2. Market Segmentation Analysis
- 5.2.1. Offering: Growing demand for consolidation services to reduce costs and complexity
- 5.2.2. Tier Type: Wider adoption Tier-3 or Tier-4 data centers for large enterprises
- 5.2.3. Data Center Size: Expanding acceptance of small data centers by small businesses, as affordable option
- 5.2.4. End-User: Increasing implementation by cloud service providers large-scale deployment
- 5.2.5. Vertical: Rising utilization across manufacturing industries for complex supply chain management
5.3. Market Trend Analysis
- 5.3.1. Increasing data center infrastructure with a robust presence of major players in Americas
- 5.3.2. Increasing transformation towards cloud-based solutions along with growing investment in digitalization in the APAC
- 5.3.3. Increasing construction of automated and energy-efficient data centers expanding the scope of data center transformation services 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 Center Transformation Market, by Offering

6.1. Introduction
6.2. Services
6.3. Software

7. Data Center Transformation Market, by Tier Type

7.1. Introduction
7.2. Tier 1
7.3. Tier 2
7.4. Tier 3
7.5. Tier 4
7.6. Tier 5

8. Data Center Transformation Market, by Data Center Size

8.1. Introduction
8.2. Large Data Centers
8.3. Midsized Data Centers
8.4. Small Data Centers

9. Data Center Transformation Market, by Vertical

9.1. Introduction
9.2. Banking, Financial Services, & Insurance
9.3. Energy
9.4. Government & Defense
9.5. Healthcare
9.6. IT & Telecom
9.7. Manufacturing
9.8. Retail & Consumer Goods
9.9. Transportation

10. Data Center Transformation Market, by End-User

10.1. Introduction
10.2. Cloud Service Providers
10.3. Colocation Providers
10.4. Enterprises

11. Americas Data Center Transformation Market

11.1. Introduction
11.2. Argentina
11.3. Brazil
11.4. Canada
11.5. Mexico
11.6. United States

12. Asia-Pacific Data Center Transformation Market

12.1. Introduction
12.2. Australia
12.3. China
12.4. India
12.5. Indonesia
12.6. Japan
12.7. Malaysia
12.8. Philippines
12.9. Singapore
12.10. South Korea
12.11. Taiwan
12.12. Thailand
12.13. Vietnam

13. Europe, Middle East & Africa Data Center Transformation Market

13.1. Introduction
13.2. Denmark
13.3. Egypt
13.4. Finland
13.5. France
13.6. Germany
13.7. Israel
13.8. Italy
13.9. Netherlands
13.10. Nigeria
13.11. Norway
13.12. Poland
13.13. Qatar
13.14. Russia
13.15. Saudi Arabia
13.16. South Africa
13.17. Spain
13.18. Sweden
13.19. Switzerland
13.20. Turkey
13.21. United Arab Emirates
13.22. United Kingdom

14. Competitive Landscape

14.1. Market Share Analysis, 2023
14.2. FPNV Positioning Matrix, 2023
14.3. Competitive Scenario Analysis
- 14.3.1. Equinix, Inc. Partners With NetApp, Inc. to Drive Customer Demand for Cloud Adjacent Storage
- 14.3.2. Digital Realty Makes Gains on Data Center Sustainability in Singapore with New Cooling Tower Initiative
- 14.3.3. Wipro Partners With Pure Storage To Drive Sustainable Technology In Data Storage And Data Centers
- 14.3.4. UK's Loughborough University Modernizes two Data Centers
- 14.3.5. IBM Furthers Flexibility, Sustainability and Security within the Data Center with New IBM z16 and LinuxONE 4 Single Frame and Rack Mount Options
- 14.3.6. New EcoCare services membership from Schneider Electric helps to reduce modular data centers' planned downtime by up to 40%
- 14.3.7. Hitachi Vantara Delivers Data-Driven Sustainability and Operational Transformation for Leading European Manufacturer
- 14.3.8. Accenture Collaborated with Microsoft to Transform Its Azure Supply Chain
- 14.3.9. Huawei Launches Data Center DR Service Solution 2.0
- 14.3.10. Gijima Powers Sustainable Data Infrastructure with Hitachi Virtual Storage Platforms
- 14.3.11. OpenText Buys Micro Focus
- 14.3.12. MetalSoft Cloud Inc. Tackles End-to-End Data Center Automation with USD 16 Million Series A Funding

15. Competitive Portfolio

15.1. Key Company Profiles
15.2. Key Product Portfolio