PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1456922
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1456922
The global data centre infrastructure market is expected to grow at a CAGR of 9.58%, reaching a market size of US$5.991 billion in 2029 from US$3.158 billion in 2022.
Datacenter infrastructure includes IT infrastructure devices, equipment, and technologies that strongly comprise a data centre. Datacenter infrastructure is even required by IT and big multinational companies for storing data and running networks across their businesses. The data centre infrastructure market is growing due to increasing colocation and data centres in the world. The increasing demand for cloud networking is majorly driving the market for data centre infrastructure. The increasing need for data centres to store this ever-growing volume of data is fueling the demand for data centre infrastructure.
The data centre infrastructure market is also growing due to an increase in demand for servers, computers, networking equipment like routers or switches, security components like firewalls or biometric security sensors, storage capacity, and data centre management software and applications. The market is also witnessing noteworthy growth owing to the ageing IT infrastructure, which is insufficient to store the current data volume. As such, companies are moving towards more intelligent physical infrastructure data centre systems.
The global data centre infrastructure market is segmented by solution, end-user, and geography. By solution, the global data centre infrastructure market is segmented into hardware, software, and services. The market is further segmented by end-users as cloud providers, enterprise, and colocation providers.
Rising demand for hardware data solutions
The hardware segment holds a major share of the data centre infrastructure market. The growing number of data centres around the world is augmenting the demand for hardware solutions to manage data centres. The increasing number of cloud service providers is demanding more storage facilities with a growing volume of big data generated every year. This, in turn, is spurring the demand for servers, cables, networking equipment, storage space, and physical server racks & chassis, thus driving the market for the data centre infrastructure.
The software and service segment is also projected to experience a rise in its market share in the data centre infrastructure market. The growing use of data centres is increasing the requirement for data centre infrastructure software for managing data centres and colocation centres. Increasing investments to create a skilled workforce is likely to support the growth of service solutions. For example, companies like Cisco are providing certified courses for special training in data centre networking and technology for improving employees for better fit according to advancing technology.
Increasing use by cloud service providers
The growth of this end-user segment is attributed to the increasing number of cloud service providers across the world for storing data and providing smooth access to their customers by using efficient networking devices. This, in turn, is bolstering the market growth of data centre infrastructure. The colocation centre as an end-user segment also holds considerable market share with increasing investments in colocation centres due to the requirement for large data storage spaces for big IT and multinational companies that need additional space for storing data and for networking purposes.
A lot of cloud service providers and colocation centres are collaborating to provide data centre infrastructure in various countries across the world for better connectivity and networking. For example, Interxion, a leading provider of carrier and cloud-neutral colocation data centre services in Europe announced that dedicated access to Google Cloud Platform will be available across Europe through its Cloud Connect. Also, the company announced the construction of a new data centre in Frankfurt in response to continued customer demand.
North America is expected to hold a significant share during the forecast period
Numerous innovators in technology reside in North America. Cloud computing and Internet of Things technologies are in high demand in the region. To handle the growing complexity of these technologies, reliable data centre facilities are required. Furthermore, the US economy is among the fastest-growing in the world, which is expected to spur the expansion of data centres that are based in the public cloud. Data centres are widely used in the United States, where the IT industry is the largest employer in the private sector and drives the market growth. Moreover, the nation has seen an increase in its hyper-scale platforms, making data centre services essential for the hyper-scale platforms in the United States.
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