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The data center IT infrastructure market is estimated to grow at a CAGR of 6.56% between 2022 and 2027. The size of the market is forecast to increase by USD 84.17 billion. The growth of the market depends on several factors, including technology refresh cycles, a shift toward edge computing, and increased investments in data centers and particularly hyper-scale data centers (HDCs).
This report extensively covers market segmentation by component (server infrastructure, storage infrastructure, software-defined data center, network infrastructure, and others), end-user (BFSI, energy, information system, and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The technology refresh cycles are notably driving the market growth, although factors such as data security concerns and increasing cybersecurity threats may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Data Center IT Infrastructure Market Driver
The technology refresh cycles are notably driving market growth. The need for servers is being driven by businesses going through IT system refresh cycles to make sure their server, storage, and network infrastructure is prepared for future computing demands. Enterprises are not only buying standard x86 server units for high-performance computing tasks. Several vendors have signed and even completed major server refresh deals with their customers.
Dell Technologies introduced a flexible consumption model to offer its clients a fixed and buffer server installed base. This model can track the server requirements and usage patterns of the clients using automated tools. For instance, if a client uses the buffer server installed base frequently, then the consumption model is modified, and the fixed server installed base is scaled up. Thus, enterprises' initiatives for scaling up on-premise data centers are fueling the growth of the global data center server market during the forecast period.
Significant Data Center IT Infrastructure Market Trend
Increasing use of HCI solutions as an alternative to the public cloud is an emerging trend in the market. HCI solutions can eliminate the need for multiple experts required to manage different data center components and can be deployed faster than traditional data center systems. One of the biggest advantages of HCI solutions is that they can work with any commodity hardware.
There are several risks and regulations associated with storing data on the public cloud. In such cases, HCI systems act as a good alternative to the public cloud as they are simple to manage and help cut the costs associated with traditional data center systems. One of the value propositions of HCI is to bring cloud-like flexibility to on-premise data centers. In fact, many cloud service providers are implementing HCI systems in their cloud data centers and, therefore, are among the key customers of HCI vendors. The abovementioned factors will lead to steady growth of the market during the forecast period.
Major Data Center IT Infrastructure Market Challenge
Data security concerns and increasing cybersecurity threats is the major challenge impeding the market growth. Cybercrime is increasing with the growing adoption of cloud services and the IoT and enterprise servers are at risk of being hacked by cybercriminals. These hackers take advantage of IT security loopholes to gain access to enterprise servers. Cyberattacks have also evolved from hit-and-trial methods to more targeted, methodological, and long-standing attacks.
Cyberattacks can compromise the enterprises' data and can even result in the shutting down of certain segments of the business operations of enterprises. Strict data protection regulations are being enforced, and failure to comply can lead to the imposition of hefty penalties and fines on enterprises. This will restrict the growth of the market during the forecast period.
Key Data Center IT Infrastructure Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Data Center IT Infrastructure Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Sunbird Inc. - The company offers solutions for data center IT infrastructure which helps to manage a data center become easier and more user-friendly than ever before. The company offers DCIM solutions that provide an accurate real-time view of the data centers including servers, storage, networking equipment, rack PDUs, patch panels, and applications for asset management.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the server infrastructure segment will be significant during the forecast period. Servers account for a major share of the overall cost of IT infrastructure in a data center. Enterprises and data center service providers are focusing on shifting their server-related investments from CAPEX to OPEX models to ensure optimum utilization of their server infrastructure and reduce cost. Server estate is scalable enough to meet their current and near-term computing requirements and also helps them overcome challenges associated with space, power, and cooling.
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The server infrastructure segment was valued at USD 69.01 billion in 2017 and continued to grow until 2021. The global server infrastructure market has witnessed significant growth over the past five years. The growth can be validated by the results reported by one of the leading vendors, Dell Technologies. Factors such as data center expansion, technology refresh cycles, and the expansion of colocation data centers and HDCs are expected to drive the server infrastructure segment during the forecast period.
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North America is estimated to contribute 31% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The demand for data center IT infrastructure will continue to increase in North America, driven by higher investments by hyper-scale cloud providers, colocation service providers, and enterprises, which are upgrading their IT infrastructure to support edge computing, 5G, multi-cloud services, big data analytics, and IoT. Similarly, with a rising number of cloud services, the demand for data centers in North America is increasing. The US is the data center hub in North America, with cities such as Atlanta, Chicago, Dallas/Ft. Worth and Silicon Valley dominate the data center market in the region. Several data center service providers and enterprises have announced their expansion plans, which would fuel the server market in the US.
In 2020, COVID-19 propelled the growth of the market in North America. Also, the initiation of vaccination drives has led to the lifting of lockdowns in the region. This has resulted in the resumption of business operations by several data centers in North America, such as Apple Inc., Google LLC, and Equinix, Inc., which increased the demand for data center IT infrastructure in North America. Such factors are expected to drive the growth of the regional market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Data Center IT Infrastructure Market Scope |
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Report Coverage |
Details |
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Page number |
186 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.56% |
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Market growth 2023-2027 |
USD 84.17 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
5.68 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 31% |
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Key countries |
US, China, Australia, Japan, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ABB Ltd., Aplena Inc., BGIS Global Integrated Solutions, Broadcom Inc., Cisco Systems Inc., CommScope Holding Co. Inc., Device42 Inc., Eaton Corp. Plc, FNT GmbH, Huawei Technologies Co. Ltd., Modius Inc., Nlyte Software Ltd., Panduit Corp., Rackwise Inc., RF Code Inc., Schneider Electric SE, Siemens AG, Sunbird Inc., Vertiv Holdings Co., and Legrand SA |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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