Overview of the data center market in China
According to the market research analysts at Technavio, the data center market in China is expected to witness exponential growth and will post an impressive CAGR of nearly 13% during the forecast period. Data centers process and store business information and form the backbone of all cloud-based operations. Therefore, many large enterprises, such as Amazon Web Services, Microsoft Azure, Google Cloud, and Alibaba operate data centers for their daily business operations. Several growing small and medium-sized enterprises (SMEs) prefer to run their business operations through cloud service providers (CSPs), colocations, and the web hosting cloud data centers because of benefits like scalability, reliability, and cost reduction. Moreover, the demand for public cloud storage is expected to grow because of the decrease in cloud storage cost for Chinese consumers, which will fuel the growth of the data center market in China over the coming years.
One of the emerging trends propelling the growth prospects for this market is the increase in construction of green data centers. Increase in carbon emissions and high consumption of electricity through data centers worldwide are creating awareness among enterprises for the construction of green data center facilities. These facilities help in the operation of energy efficient IT, power, and cooling infrastructure, thereby reducing the electricity consumption and carbon footprint. Moreover, advanced technologies and strategies are implemented in a data center to improve its performance. Concepts such as free cooling, use of renewable energy sources, consolidation, and waste
Outlook of the data center colocation market in Western Europe
Market research analysts at Technavio have predicted that data center colocation market in Western Europe will grow tremendously at a CAGR of more than 9% over the forecast period. Enterprises are witnessing a rapid increase in the digital content transmitted and manipulated in their networks. Due to a rising network traffic and the increase in the complexity of network management, there is a growing need for human expertise to manage operations. However, with the adoption of colocation services, the majority of enterprises are finding it easier to manage network dynamics, control traffic flow, and scale up data infrastructure efficiently, which will drive this market’s growth in the coming years.
The increasing adoption of green data centers is one of the upcoming trends gaining significant traction in the market. The increase in carbon emissions and high consumption of electricity by data centers around the world is bolstering the construction of green data center facilities. These facilities help in the operation of energy efficient IT, power, and cooling infrastructure. Moreover, many novel concepts, such as free cooling, use of renewables, consolidation, and waste recycling are being implemented in green data centers to improve their performance. As a result, several data centers are using renewable energy sources to power their data centers, thereby reducing electricity cost and carbon footprint.
Segmentation by application and analysis of the data center colocation market in Western Europe
- Retail colocation
- Wholesale colocation
Outlook of the global cloud storage gateway market
Technavio’s market research analyst anticipates the global cloud storage gateway (CSG) market to grow at a profound CAGR of approximately 41% during the forecast period. The growing demand for cloud-based storage and the recent increase in enterprise data will aid in the growth of this market. Recently, it has been observed that many enterprises are struggling to handle the data generated by the augmented use of mobile technologies. Consequently, many enterprises are backing up their vital data in the cloud due to its cost effectiveness. The ability of CSG to facilitate the transfer of data from on-premise platforms to a cloud-based storage platform will result in its augmented adoption during the predicted period.
Recent product innovations are expected to boost market growth during the forecast period. During the forecast period, it has been observed that many vendors are constantly innovating in packaging and formulations, and are even inventing new ways to increase the consumption of their products. Cloud service providers such as Amazon and Microsoft offer virtual gateway appliances for enterprises adopting their cloud storage platforms. Also, modern storage arrays are also being equipped with gateway support features to facilitate the transfer data to the cloud. The advent of new and improved gateway support features will help this market to gain significant traction during the estimated period.
Geographical segmentation of the cloud storage gateway market
In this market study, analysts have estimated the Americas to be the largest market for CSG during the forecast period. This region currently dominates the global CSG market and accounts for a market share of around 52%. It is expected that the
Overview of the data center storage market
According to the market research analysts at Technavio, the global data center storage market is anticipated to witness staggering growth and will post an impressive CAGR of more than 15% over the forecast period. Storing data in the cloud is proving to be an effective medium for enterprises around the world. With a large amount of data generated through Internet-of-things (IoT), storing this data on-premise is turning out to be an expensive affair for most enterprises. As a result, the majority of enterprises have started moving their data to the cloud storage through service providers, such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform. Moreover, the demand for cloud storage has also increased because of reduced cost, better scalability, and high availability of storage. With the growing adoption of cloud-based storage, CSPs are involved in the construction of cloud data centers worldwide. These data centers are likely to be installed with advanced storage infrastructures such as flash and hybrid arrays, which will aid in this market’s growth in the coming years.
One of the significant trends bolstering the growth prospects of this market is the rising adoption of flash-based storage. SSD storage, commonly known as flash storage, offers greater efficiency compared to traditional HDD storage. Currently, flash-based storage is more expensive than HDD-based storage arrays. The vendors are continuously
Overview of the data center colocation market in the US
Technavio’s market research analyst predicts the data center colocation market in the US to grow at a CAGR of almost 9% by 2020. The use of data center IT infrastructure has increased with the introduction of virtualization, which has intensified competition among businesses. The growing business requirements have prompted enterprises to use retail and wholesale colocation space to host additional infrastructure for business continuity. Data center colocation reduces the need for capital investment involved in the construction of data centers. It also lowers the operational costs. Colocation vendors are offering several managed colocation services through which enterprises can rent infrastructure managed by the vendors themselves. The vendors provide uninterrupted services and maintenance in data center facilities which increases the productivity and performance of enterprises, resulting in increased demand for colocation facilities.
The demand for energy-efficient data centers with minimum environmental impact has helped in the emergence of different metrics, standards, and certifications for data center environments. Rise in carbon emissions and growing consumption of electricity by data centers across the globe are propelling the construction of green data center facilities. These facilities assist in the operation of energy efficient IT, power, and cooling infrastructure. They are equipped with mechanisms such as free cooling, consolidation, and waste recycling to improve their overall performance. Several colocation vendors are also using renewable energy sources to power their data centers, which will help in reducing electricity cost and carbon footprint.
Competitive landscape and key vendors
Global outlook of the data center market
Technavio’s market research analyst predicts the global data center market to grow at a CAGR of close to 11% between 2016 and 2020. Rise in digitization and cloud computing among organizations have necessitated the construction of data center facilities across the globe. Though cloud computing involves higher computational power it enables flexible, scalable, and efficient business operations, which has led several growing medium-sized enterprises to opt for efficient data centers. These enterprises run their operations through cloud service providers (CSPs), colocations, and web hosting cloud data centers due to benefits such as scalability, reliability, and cost reduction. These requirements have propelled the use of cloud data centers or mega data centers. However, these data centers consume large quantities of power during peak data-intensive operations, which will lead to their renovations in terms of design and deployment in the coming years.
APAC is the fastest-growing region in the market due to the rising significance of data center operations among large enterprises and government agencies. Telecommunications vendors such as NTT and China Telecom and a few global IT service organizations operate the majority of the data centers in the region. Much of the region’s growth can also be attributed to the increase in data center construction by local and global enterprises. Several global