The data center market is estimated to stand at US$ 30.41 billion in 2024. The market is forecasted to exceed a valuation of US$ 117.24 billion by 2034, recording a CAGR of 14.40%. Data center demand is primarily driven by the exponential upsurge in data consumption and data generation by organizations across multiple industries.
Attributes | Details |
---|---|
Estimated Data Center Market Size (2024) | US$ 30.41 billion |
Forecasted Market Size (2034) | US$ 117.24 billion |
Projected Value CAGR (2024 to 2034) | 14.40% |
The growing need for cloud computing boosts data center demand. Businesses switch to cloud solutions for storage, processing, and software, driving the need for multi-tenant data centers to host these services.
The rise of big data and IoT fuels data center market growth. Data centers are crucial for storing, managing, and analyzing massive amounts of data devices and applications generate.
The surge in eCommerce and digital content drives data center demand. With more people shopping online and streaming media, companies need strong data center infrastructure to handle their digital platforms and services.
Data privacy and security rules lead to investment in data center solutions. Businesses require secure and reliable data center environments to meet strict data protection regulations.
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From 2019 to 2023, the data center market showed strong growth, boasting a 12.70% CAGR. During this period growth accelerated because of the COVID-19 pandemic. This has pushed organizations towards digital transformation.
Around every organization shifted to remote working. This mandated the demand for speedy mobilization of cloud computing to handle the substantial amount of data. This has positively impacted the market outlook.
Attributes | Quantitative Outlook |
---|---|
Data Center Market Size (2023) | US$ 26.83 billion |
Historical CAGR (2019 to 2023) | 12.70% |
Short-term Data Center Market Analysis
The introduction of 5G networks speeds up data transmission and enables new applications. This, in turn, is creating a need for more data center infrastructure to handle the increased data flow. This wireless technology requires quicker downloads, faster access, and seamless streaming, leading to increased demand for high-speed data centers.
Long-term Data Center Market Analysis
Cloud services rely on strong data centers to support applications and computing resources. Cloud providers are prioritizing edge computing, which requires smaller data center infrastructures closer to users.
Consequently, this is leading to a rise in demand for micro data centers. The growing use of cloud services by small, medium, and large businesses is likely to contribute to the market expansion through 2034.
The emergence of micro data centers is likely to create significant opportunities for market players. The rising interest in small, convenient, and modular data centers is expected to create a large foundation for micro data centers.
Micro data centers can be set up or expanded easily as needed, helping companies react swiftly to customer needs without extra costs. This increasing demand for micro data centers is likely to bring about future prospects for the market.
The North America data center market stands out as a moderately performing regional market. The adoption of cloud facilities and the trend toward digital transformation in every field is driving the demand for hyperscale data center edifice in this region. Europe is witnessing continuous and steady growth in demand for data centers.
Countries | Data Center Industry Forecasted CAGR (2024 to 2034) |
---|---|
United States | 11.30% |
Germany | 9.90% |
China | 15.00% |
Demand for data centers in the United States is set to rise with an anticipated CAGR of 11.30% through 2034. Key factors influencing the data center market include:
The Germany data center market is expected to surge at a CAGR of 9.90% through 2034. The topmost dynamic forces supporting the data center adoption in the country include:
The market in China is likely to exhibit a CAGR of 15.00% through 2034. Reasons supporting the growth of the data center market in the country include:
As far as the component of data center is concerned, the hardware segment is likely to acquire 51.80% data center market share. Similarly, the tier 3 data center segment is expected to generate considerable profit in terms of data center tier, possessing a 38.10% revenue share of Data Center industry in 2024.
Segment | Estimated Market Share in 2024 |
---|---|
Hardware | 51.80% |
Tier 3 Data Center | 38.10% |
The hardware segment is anticipated to perform better than others in the market. Here are a few key factors that contribute to its acceptance in the market:
The tier 3 data center segment is set to take a little less than 1/3rd of the market share, a trend validated by factors such as:
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Data center market players implement diverse strategies to gain an edge in this fiercely competitive market. Many companies focus on differentiation through innovative technologies and services.
Some prioritize cost leadership by offering competitive pricing and efficient operations. Others emphasize customer service and support,. Additionally, partnerships and strategic alliances are common strategies to expand market reach and enhance service offerings.
Recent Developments
The market size for data center is forecasted to be worth US$ 30.41 billion in 2024.
The data center market value is projected to surpass US$ 117.24 billion by 2034.
The CAGR of the data center industry is estimated to be around 14.40% through 2034.
China and the United States is the key consumer of data centers as of 2024.
IBM Corporation and Cisco System, Inc. are data center industry leaders.
1. Executive Summary 1.1. Global Market Outlook 1.2. Demand-side Trends 1.3. Supply-side Trends 1.4. Technology Roadmap Analysis 1.5. Analysis and Recommendations 2. Market Overview 2.1. Market Coverage / Taxonomy 2.2. Market Definition / Scope / Limitations 3. Market Background 3.1. Market Dynamics 3.1.1. Drivers 3.1.2. Restraints 3.1.3. Opportunity 3.1.4. Trends 3.2. Scenario Forecast 3.2.1. Demand in Optimistic Scenario 3.2.2. Demand in Likely Scenario 3.2.3. Demand in Conservative Scenario 3.3. Opportunity Map Analysis 3.4. Investment Feasibility Matrix 3.5. PESTLE and Porter’s Analysis 3.6. Regulatory Landscape 3.6.1. By Key Regions 3.6.2. By Key Countries 3.7. Regional Parent Market Outlook 4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034 4.1. Historical Market Size Value (US$ Million) Analysis, 2019 to 2023 4.2. Current and Future Market Size Value (US$ Million) Projections, 2024 to 2034 4.2.1. Y-o-Y Growth Trend Analysis 4.2.2. Absolute $ Opportunity Analysis 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Component 5.1. Introduction / Key Findings 5.2. Historical Market Size Value (US$ Million) Analysis By Component, 2019 to 2023 5.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Component, 2024 to 2034 5.3.1. Hardware 5.3.1.1. Power Systems 5.3.1.2. Racks 5.3.1.3. Servers 5.3.1.4. Networking Devices 5.3.1.5. Others 5.3.2. Software 5.3.3. Service 5.3.3.1. Integration & Implementation 5.3.3.2. Consulting 5.3.3.3. Support & Maintenance 5.3.3.4. Managed Services 5.4. Y-o-Y Growth Trend Analysis By Component, 2019 to 2023 5.5. Absolute $ Opportunity Analysis By Component, 2024 to 2034 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Size 6.1. Introduction / Key Findings 6.2. Historical Market Size Value (US$ Million) Analysis By Size, 2019 to 2023 6.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Size, 2024 to 2034 6.3.1. Small Data Center 6.3.2. Mid-Sized Data Center 6.3.3. Large Data Center 6.4. Y-o-Y Growth Trend Analysis By Size, 2019 to 2023 6.5. Absolute $ Opportunity Analysis By Size, 2024 to 2034 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Industry 7.1. Introduction / Key Findings 7.2. Historical Market Size Value (US$ Million) Analysis By Industry, 2019 to 2023 7.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Industry, 2024 to 2034 7.3.1. IT & Telecom 7.3.2. BFSI 7.3.3. Manufacturing 7.3.4. Healthcare 7.3.5. Media & Entertainment 7.3.6. Others 7.4. Y-o-Y Growth Trend Analysis By Industry, 2019 to 2023 7.5. Absolute $ Opportunity Analysis By Industry, 2024 to 2034 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 8.1. Introduction 8.2. Historical Market Size Value (US$ Million) Analysis By Region, 2019 to 2023 8.3. Current Market Size Value (US$ Million) Analysis and Forecast By Region, 2024 to 2034 8.3.1. North America 8.3.2. Latin America 8.3.3. Western Europe 8.3.4. Eastern Europe 8.3.5. South Asia and Pacific 8.3.6. East Asia 8.3.7. Middle East and Africa 8.4. Market Attractiveness Analysis By Region 9. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 9.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 9.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 9.2.1. By Country 9.2.1.1. USA 9.2.1.2. Canada 9.2.2. By Component 9.2.3. By Size 9.2.4. By Industry 9.3. Market Attractiveness Analysis 9.3.1. By Country 9.3.2. By Component 9.3.3. By Size 9.3.4. By Industry 9.4. Key Takeaways 10. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 10.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 10.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 10.2.1. By Country 10.2.1.1. Brazil 10.2.1.2. Mexico 10.2.1.3. Rest of Latin America 10.2.2. By Component 10.2.3. By Size 10.2.4. By Industry 10.3. Market Attractiveness Analysis 10.3.1. By Country 10.3.2. By Component 10.3.3. By Size 10.3.4. By Industry 10.4. Key Takeaways 11. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 11.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 11.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 11.2.1. By Country 11.2.1.1. Germany 11.2.1.2. UK 11.2.1.3. France 11.2.1.4. Spain 11.2.1.5. Italy 11.2.1.6. Rest of Western Europe 11.2.2. By Component 11.2.3. By Size 11.2.4. By Industry 11.3. Market Attractiveness Analysis 11.3.1. By Country 11.3.2. By Component 11.3.3. By Size 11.3.4. By Industry 11.4. Key Takeaways 12. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 12.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 12.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 12.2.1. By Country 12.2.1.1. Poland 12.2.1.2. Russia 12.2.1.3. Czech Republic 12.2.1.4. Romania 12.2.1.5. Rest of Eastern Europe 12.2.2. By Component 12.2.3. By Size 12.2.4. By Industry 12.3. Market Attractiveness Analysis 12.3.1. By Country 12.3.2. By Component 12.3.3. By Size 12.3.4. By Industry 12.4. Key Takeaways 13. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 13.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 13.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 13.2.1. By Country 13.2.1.1. India 13.2.1.2. Bangladesh 13.2.1.3. Australia 13.2.1.4. New Zealand 13.2.1.5. Rest of South Asia and Pacific 13.2.2. By Component 13.2.3. By Size 13.2.4. By Industry 13.3. Market Attractiveness Analysis 13.3.1. By Country 13.3.2. By Component 13.3.3. By Size 13.3.4. By Industry 13.4. Key Takeaways 14. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 14.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 14.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 14.2.1. By Country 14.2.1.1. China 14.2.1.2. Japan 14.2.1.3. South Korea 14.2.2. By Component 14.2.3. By Size 14.2.4. By Industry 14.3. Market Attractiveness Analysis 14.3.1. By Country 14.3.2. By Component 14.3.3. By Size 14.3.4. By Industry 14.4. Key Takeaways 15. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 15.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 15.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 15.2.1. By Country 15.2.1.1. GCC Countries 15.2.1.2. South Africa 15.2.1.3. Israel 15.2.1.4. Rest of MEA 15.2.2. By Component 15.2.3. By Size 15.2.4. By Industry 15.3. Market Attractiveness Analysis 15.3.1. By Country 15.3.2. By Component 15.3.3. By Size 15.3.4. By Industry 15.4. Key Takeaways 16. Key Countries Market Analysis 16.1. USA 16.1.1. Market Share Analysis, 2023 16.1.1.1. By Component 16.1.1.2. By Size 16.1.1.3. By Industry 16.2. Canada 16.2.1. Market Share Analysis, 2023 16.2.1.1. By Component 16.2.1.2. By Size 16.2.1.3. By Industry 16.3. Brazil 16.3.1. Market Share Analysis, 2023 16.3.1.1. By Component 16.3.1.2. By Size 16.3.1.3. By Industry 16.4. Mexico 16.4.1. Market Share Analysis, 2023 16.4.1.1. By Component 16.4.1.2. By Size 16.4.1.3. By Industry 16.5. Germany 16.5.1. Market Share Analysis, 2023 16.5.1.1. By Component 16.5.1.2. By Size 16.5.1.3. By Industry 16.6. UK 16.6.1. Market Share Analysis, 2023 16.6.1.1. By Component 16.6.1.2. By Size 16.6.1.3. By Industry 16.7. France 16.7.1. Market Share Analysis, 2023 16.7.1.1. By Component 16.7.1.2. By Size 16.7.1.3. By Industry 16.8. Spain 16.8.1. Market Share Analysis, 2023 16.8.1.1. By Component 16.8.1.2. By Size 16.8.1.3. By Industry 16.9. Italy 16.9.1. Market Share Analysis, 2023 16.9.1.1. By Component 16.9.1.2. By Size 16.9.1.3. By Industry 16.10. Poland 16.10.1. Market Share Analysis, 2023 16.10.1.1. By Component 16.10.1.2. By Size 16.10.1.3. By Industry 16.11. Russia 16.11.1. Market Share Analysis, 2023 16.11.1.1. By Component 16.11.1.2. By Size 16.11.1.3. By Industry 16.12. Czech Republic 16.12.1. Market Share Analysis, 2023 16.12.1.1. By Component 16.12.1.2. By Size 16.12.1.3. By Industry 16.13. Romania 16.13.1. Market Share Analysis, 2023 16.13.1.1. By Component 16.13.1.2. By Size 16.13.1.3. By Industry 16.14. India 16.14.1. Market Share Analysis, 2023 16.14.1.1. By Component 16.14.1.2. By Size 16.14.1.3. By Industry 16.15. Bangladesh 16.15.1. Market Share Analysis, 2023 16.15.1.1. By Component 16.15.1.2. By Size 16.15.1.3. By Industry 16.16. Australia 16.16.1. Market Share Analysis, 2023 16.16.1.1. By Component 16.16.1.2. By Size 16.16.1.3. By Industry 16.17. New Zealand 16.17.1. Market Share Analysis, 2023 16.17.1.1. By Component 16.17.1.2. By Size 16.17.1.3. By Industry 16.18. China 16.18.1. Market Share Analysis, 2023 16.18.1.1. By Component 16.18.1.2. By Size 16.18.1.3. By Industry 16.19. Japan 16.19.1. Market Share Analysis, 2023 16.19.1.1. By Component 16.19.1.2. By Size 16.19.1.3. By Industry 16.20. South Korea 16.20.1. Market Share Analysis, 2023 16.20.1.1. By Component 16.20.1.2. By Size 16.20.1.3. By Industry 16.21. GCC Countries 16.21.1. Market Share Analysis, 2023 16.21.1.1. By Component 16.21.1.2. By Size 16.21.1.3. By Industry 16.22. South Africa 16.22.1. Market Share Analysis, 2023 16.22.1.1. By Component 16.22.1.2. By Size 16.22.1.3. By Industry 16.23. Israel 16.23.1. Market Share Analysis, 2023 16.23.1.1. By Component 16.23.1.2. By Size 16.23.1.3. By Industry 17. Market Structure Analysis 17.1. Competition Dashboard 17.2. Competition Benchmarking 17.3. Market Share Analysis of Top Players 17.3.1. By Regional 17.3.2. By Component 17.3.3. By Size 17.3.4. By Industry 18. Competition Analysis 18.1. Competition Deep Dive 18.1.1. IBM Corporation 18.1.1.1. Overview 18.1.1.2. Product Portfolio 18.1.1.3. Profitability by Market Segments 18.1.1.4. Sales Footprint 18.1.1.5. Strategy Overview 18.1.1.5.1. Marketing Strategy 18.1.2. Cisco System, Inc. 18.1.2.1. Overview 18.1.2.2. Product Portfolio 18.1.2.3. Profitability by Market Segments 18.1.2.4. Sales Footprint 18.1.2.5. Strategy Overview 18.1.2.5.1. Marketing Strategy 18.1.3. HPE 18.1.3.1. Overview 18.1.3.2. Product Portfolio 18.1.3.3. Profitability by Market Segments 18.1.3.4. Sales Footprint 18.1.3.5. Strategy Overview 18.1.3.5.1. Marketing Strategy 18.1.4. Dell Technologies 18.1.4.1. Overview 18.1.4.2. Product Portfolio 18.1.4.3. Profitability by Market Segments 18.1.4.4. Sales Footprint 18.1.4.5. Strategy Overview 18.1.4.5.1. Marketing Strategy 18.1.5. Hitachi Ltd 18.1.5.1. Overview 18.1.5.2. Product Portfolio 18.1.5.3. Profitability by Market Segments 18.1.5.4. Sales Footprint 18.1.5.5. Strategy Overview 18.1.5.5.1. Marketing Strategy 18.1.6. NTT Communications 18.1.6.1. Overview 18.1.6.2. Product Portfolio 18.1.6.3. Profitability by Market Segments 18.1.6.4. Sales Footprint 18.1.6.5. Strategy Overview 18.1.6.5.1. Marketing Strategy 18.1.7. Schneider Electric 18.1.7.1. Overview 18.1.7.2. Product Portfolio 18.1.7.3. Profitability by Market Segments 18.1.7.4. Sales Footprint 18.1.7.5. Strategy Overview 18.1.7.5.1. Marketing Strategy 18.1.8. Comarch SA 18.1.8.1. Overview 18.1.8.2. Product Portfolio 18.1.8.3. Profitability by Market Segments 18.1.8.4. Sales Footprint 18.1.8.5. Strategy Overview 18.1.8.5.1. Marketing Strategy 18.1.9. ABB 18.1.9.1. Overview 18.1.9.2. Product Portfolio 18.1.9.3. Profitability by Market Segments 18.1.9.4. Sales Footprint 18.1.9.5. Strategy Overview 18.1.9.5.1. Marketing Strategy 18.1.10. Huawei Technologies Co., Ltd. 18.1.10.1. Overview 18.1.10.2. Product Portfolio 18.1.10.3. Profitability by Market Segments 18.1.10.4. Sales Footprint 18.1.10.5. Strategy Overview 18.1.10.5.1. Marketing Strategy 19. Assumptions & Acronyms Used 20. Research Methodology
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December 2022
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250 pages
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