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The data center market share is expected to increase by USD 615.96 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 21.98%.
This data center market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers market segmentation by component (IT infrastructure, power management system, mechanical construction, general construction, and security solutions) and geography (North America, APAC, Europe, South America, and MEA). The data center market report also offers information on several market vendors, including Alphabet Inc., Amazon.com Inc., Cisco Systems Inc., Equinix Inc., Microsoft Corp., NTT DATA Corp., Oracle Corp., SAP SE, Huawei Investment & Holding Co. Ltd., and International Business Machines Corp. among others.
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Based on our research output, there has been a neutral impact on the market growth during and post COVID-19 era. The rise in adoption of multi-cloud and network upgrades to support 5G is notably driving the data center market growth, although factors such as cybersecurity issues may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the data center industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Data Center Market Key Driver
One of the key factors driving the global data center market growth is the rise in the adoption of multi-cloud and network upgrades to support 5G. Enterprises are embracing multi-cloud architecture to prevent data loss or downtime due to a localized component failure, ensure security compliances, and meet workload requirements. The demand for the deployment of 4G/5G networks globally is also expected to increase during the forecast period. With the implementation of 5G technologies and the consequent increase in speed, the rate at which data is generated, transmitted, and consumed will grow. This will drive the demand for the upgrade of the existing data center network infrastructure and increase in new data centers constructed closer to the data origins to reduce latency, which will positively impact the market growth in the forecast period.
Key Data Center Market Trend
The rise in the adoption of edge computing is another major factor supporting the global data center market growth. Edge computing is a network architecture wherein the data is stored and processed near its origin. An edge server in this network serves as the connection between separate networks. The advantage of edge computing is that the stored content is close to the client machine, thereby reducing latency and improving server response. This type of network architecture was initially implemented by SMEs, but the growing demand for efficient and secure data management has spurred its implementation in large-scale enterprises. Market vendors are focusing on developing and introducing new edge computing platforms, which will help clients to improve their data management capabilities at the edge of the network. The growing deployment of edge computing will, thus, spur the demand for edge data centers, and the trend of edge data center deployments will continue during the forecast period, led by the advent of 5G and IoT technologies.
Data Center Market Key Challenge
Cybersecurity issues will be a major challenge for the global data center market growth. Data is increasingly recognized as one of the prime assets for enterprises to derive revenue opportunities by analyzing past trends and for decision-making for the future. However, the security of sensitive data, which includes customer/usernames, addresses, telephone numbers, and social security numbers, is a major concern for enterprises. The threat of cyberattacks is rising with the growing adoption of cloud services and an increase in the adoption of IoT-based solutions. With a rise in cybercrime, enterprise server estate is at risk of being hacked by cybercriminals, who can take advantage of the IT security loopholes to gain access to enterprise servers. Such events would be a major challenge in the global data center market during the forecast period.
This data center market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Technavio categorizes the global data center market as a part of the global IT spending market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the data center market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the data center market encompasses successful business strategies deployed by the key vendors. The data center market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The data center market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the data center market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chains is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of the global IT spending market includes the following core components:
The report has further elucidated on other innovative approaches being followed by service providers to ensure a sustainable market presence.
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35% of the market's growth will originate from North America during the forecast period. The US is the key market for data centers in North America. Market growth in this region will be faster than the growth of the market in Europe and MEA.
The significant increase in the adoption of cloud services by enterprises across industries in countries such as the US and Canada will facilitate the data center market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
The outbreak of the COVID-19 pandemic has further propelled the growth of the market in North America. The emergence of a new business environment with the work-from-home culture is increasing the adoption of cloud services and digitization. Thus, service providers and vendors are increasing their investment to gain an edge over their competitors. For instance, in February 2020, Google made an investment of more than USD 10 billion in offices and data centers across the US. Such initiatives by the key market players will substantially drive the growth of the regional data center market during the forecast period.
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The data center market share growth by the IT infrastructure segment will be significant during the forecast period. The significant increase in the adoption of IT infrastructure owing to the increase in demand for computing power and storage to support the growth in global data traffic will drive the market growth through this segment.
This report provides an accurate prediction of the contribution of all the segments to the growth of the data center market size and actionable market insights on post COVID-19 impact on each segment.
Brazil Data Center Market- The market in Brazil to grow at a CAGR of 14.08 percent over the period 2013-2018
US Data Center Market - The market in the US grew at a CAGR of 10.21 percent over the period 2013-2018.
ANZ Data Centre Market - The market in ANZ to grow steadily at a CAGR of above 8% by 2021.
China Data Center Market- The market value in China is projected to grow by USD 55.30 billion at a CAGR of 23.72% during 2020-2025.
MEA Region Data Center Market- The analysts forecast the Data Center market in the MEA region will grow at a CAGR of 10.55 percent over the period 2014-2018.
China Data Center Market- The China data center market size is estimated to grow at a CAGR of 27.22% between 2022 and 2027. The China data center market size is forecast to increase by USD 101,794 million.
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Data Center Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2020 |
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Forecast period |
2021-2026 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 21.98% |
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Market growth 2021-2025 |
$615.96 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
20.22 |
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Regional analysis |
North America, APAC, Europe, South America, and MEA |
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Performing market contribution |
North America at 35% |
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Key consumer countries |
US, China, UK, Australia, Japan, and Germany |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
Alphabet Inc., Amazon.com Inc., Cisco Systems Inc., Equinix Inc., Microsoft Corp., NTT DATA Corp., Oracle Corp., SAP SE, Huawei Investment & Holding Co. Ltd., and International Business Machines Corp. |
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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, 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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
***1. Executive Summary
***2. Market Landscape
**2.1 Market ecosystem
*Exhibit 01: Parent market
*Exhibit 02: Market characteristics
**2.2 Value chain analysis
***3. Market Sizing
**3.1 Market definition
*Exhibit 03: Offerings of vendors included in the market definition
**3.2 Market segment analysis
*Exhibit 04: Market segments
**3.3 Market size 2021
**3.4 Market outlook: Forecast for 2021 - 2026
*3.4.1 Estimating growth rates for emerging and high-growth markets
*3.4.2 Estimating growth rates for mature markets
*Exhibit 05: Global - Market size and forecast 2021 - 2026 ($ billion)
*Exhibit 06: Global market: Year-over-year growth 2021 - 2026 (%)
***4. Five Forces Analysis
**4.1 Five Forces Summary
*Exhibit 07: Five forces analysis 2021 & 2026
**4.2 Bargaining power of buyers
*Exhibit 08: Bargaining power of buyers
**4.3 Bargaining power of suppliers
*Exhibit 09: Bargaining power of suppliers
**4.4 Threat of new entrants
*Exhibit 10: Threat of new entrants
**4.5 Threat of substitutes
*Exhibit 11: Threat of substitutes
**4.6 Threat of rivalry
*Exhibit 12: Threat of rivalry
**4.7 Market condition
*Exhibit 13: Market condition - Five forces 2021
***5. Market Segmentation by Component
**5.1 Market segments
*Exhibit 14: Component - Market share 2021-2026 (%)
**5.2 Comparison by Component
*Exhibit 15: Comparison by Component
**5.3 IT infrastructure - Market size and forecast 2021-2026
*Exhibit 16: IT infrastructure - Market size and forecast 2021-2026 ($ billion)
*5.3.1 Server infrastructure
*Exhibit 17: Server infrastructure: Market size and forecast 2021-2026
*5.3.2 Storage infrastructure
*Exhibit 18: Storage infrastructure: Market size and forecast 2021-2026
*5.3.3 Software-defined data center (SDDC)
*Exhibit 19: Software-defined data center: Market size and forecast 2021-2026
*5.3.4 Network infrastructure
*Exhibit 20: Network infrastructure: Market size and forecast 2021-2026
*5.3.5 Converged infrastructure
*Exhibit 21: Converged infrastructure: Market size and forecast 2021-2026
*5.3.6 Data center automation software
*Exhibit 22: Data center automation software: Market size and forecast 2021-2026
*5.3.7 Data center backup and recovery software
*Exhibit 23: Data center backup and recovery software: Market size and forecast 2021-2026
*5.3.8 DCIM Solutions
*Exhibit 24: DCIM solutions: Market size and forecast 2021-2026
*Exhibit 25: IT infrastructure - Year-over-year growth 2021-2026 (%)
**5.4 Power management - Market size and forecast 2021-2026
*Exhibit 26: Power management - Market size and forecast 2021-2026 ($ billion)
*5.4.1 Generators
*Exhibit 27: Generators: Market size and forecast 2021-2026
*5.4.2 Transformers
*Exhibit 28: Transformer: Market size and forecast 2021-2026
*5.4.3 UPS
*Exhibit 29: UPS: Market size and forecast 2021-2026
*5.4.4 Transfer switches and switchgears
*Exhibit 30: Transfer switches and switchgears: Market size and forecast 2021-2026
*5.4.5 PDUs
*Exhibit 31: PDUs: Market size and forecast 2021-2026
*5.4.6 Energy storage devices
*Exhibit 32: Energy storage devices: Market size and forecast 2021-2026
*Exhibit 33: Power management - Year-over-year growth 2021-2026 (%)
**5.5 Mechanical construction - Market size and forecast 2021-2026
*Exhibit 34: Mechanical construction - Market size and forecast 2021-2026 ($ billion)
*5.5.1 Cooling solutions
*Exhibit 35: Cooling solutions: Market size and forecast 2021-2026
*5.5.2 Rack
*Exhibit 36: Rack: Market size and forecast 2021-2026
*5.5.3 Server rail kit
*Exhibit 37: Server rail kit: Market size and forecast 2021-2026
*5.5.4 Others
*Exhibit 38: Others: Market size and forecast 2021-2026
*Exhibit 39: Mechanical construction - Year-over-year growth 2021-2026 (%)
**5.6 General construction - Market size and forecast 2021-2026
*Exhibit 40: General construction - Market size and forecast 2021-2026 ($ billion)
*5.6.1 Base building shell construction
*Exhibit 41: Base building shell construction: Market size and forecast 2021-2026
*5.6.2 Architecture planning and designing
*Exhibit 42: Architecture planning and designing: Market size and forecast 2021-2026
*Exhibit 43: General construction - Year-over-year growth 2021-2026 (%)
**5.7 Security solutions - Market size and forecast 2021-2026
*Exhibit 44: Security solutions - Market size and forecast 2021-2026 ($ billion)
*5.7.1 Logical security solution
*Exhibit 45: Logical security solution: Market size and forecast 2021-2026
*5.7.2 Physical security solution
*Exhibit 46: Physical security solution: Market size and forecast 2021-2026
*Exhibit 47: Security solutions - Year-over-year growth 2021-2026 (%)
**5.8 Market opportunity by Component
*Exhibit 48: Market opportunity by Component
***6. Customer landscape
**6.1 Customer landscape
*Exhibit 49: ?Customer landscape?
***7. Geographic landscape
**7.1 Geographic Segmentation
*Exhibit 50: Market share by geography 2021-2026 (%)
**7.2 Geographic Comparison
*Exhibit 51: Geographic comparison
**7.3 North America - Market size and forecast 2021-2026
*Exhibit 52: North America - Market size and forecast 2021-2026 ($ billion)
*Exhibit 53: North America - Year-over-year growth 2021-2026 (%)
**7.4 APAC - Market size and forecast 2021-2026
*Exhibit 54: APAC - Market size and forecast 2021-2026 ($ billion)
*Exhibit 55: APAC - Year-over-year growth 2021-2026 (%)
**7.5 Europe - Market size and forecast 2021-2026
*Exhibit 56: Europe - Market size and forecast 2021-2026 ($ billion)
*Exhibit 57: Europe - Year-over-year growth 2021-2026 (%)
**7.6 South America - Market size and forecast 2021-2026
*Exhibit 58: South America - Market size and forecast 2021-2026 ($ billion)
*Exhibit 59: South America - Year-over-year growth 2021-2026 (%)
**7.7 MEA - Market size and forecast 2021-2026
*Exhibit 60: MEA - Market size and forecast 2021-2026 ($ billion)
*Exhibit 61: MEA - Year-over-year growth 2021-2026 (%)
**7.8 Key leading countries
*Exhibit 62: Key leading countries
**7.9 Market opportunity by geography
*Exhibit 63: Market opportunity by geography
***8. Drivers, Challenges, and Trends
**8.1 Market drivers
*8.1.1 Rise in adoption of multi-cloud and network upgrade to support 5G
*8.1.2 Demand planning and expansion by hyperscalers
*8.1.3 Growing demand among SMEs
**8.2 Market challenges
*8.2.1 Cybersecurity issues
*8.2.2 Time to market and high initial costs
*8.2.3 Increasing power consumption
*Exhibit 64: Impact of drivers and challenges
**8.3 Market trends
*8.3.1 Implementation of AI in data centers
*8.3.2 Increased adoption of HPC across enterprises
*8.3.3 Consolidation of data centers
***9. Vendor Landscape
**9.1 Overview
**9.2 Vendor landscape
*Exhibit 65: Vendor landscape
*Exhibit 66: Landscape disruption
*Exhibit 67: Industry risks
***10. Vendor Analysis
**10.1 Vendors covered
*Exhibit 68: Vendors covered
**10.2 Market positioning of vendors
*Exhibit 69: Market positioning of vendors
**10.3 Alphabet Inc.
*Exhibit 70: Alphabet Inc. - Overview
*Exhibit 71: Alphabet Inc. - Business segments
*Exhibit 72: Alphabet Inc. - Key offerings
*Exhibit 73: Alphabet Inc. - Segment focus
**10.4 Amazon.com Inc.
*Exhibit 74: Amazon.com Inc. - Overview
*Exhibit 75: Amazon.com Inc. - Business segments
*Exhibit 76: Amazon.com Inc- Key news
*Exhibit 77: Amazon.com Inc. - Key offerings
*Exhibit 78: Amazon.com Inc. - Segment focus
**10.5 Cisco Systems Inc.
*Exhibit 79: Cisco Systems Inc. - Overview
*Exhibit 80: Cisco Systems Inc. - Business segments
*Exhibit 81: Cisco Systems Inc-Key news
*Exhibit 82: Cisco Systems Inc. - Key offerings
*Exhibit 83: Cisco Systems Inc. - Segment focus
**10.6 DXC Technology Co.
*Exhibit 84: DXC Technology Co. - Overview
*Exhibit 85: DXC Technology Co. - Business segments
*Exhibit 86: DXC Technology Co. - Key offerings
*Exhibit 87: DXC Technology Co. - Segment focus
**10.7 Equinix Inc.
*Exhibit 88: Equinix Inc. - Overview
*Exhibit 89: Equinix Inc. - Business segments
*Exhibit 90: Equinix Inc. - Key news
*Exhibit 91: Equinix Inc. - Key offerings
*Exhibit 92: Equinix Inc. - Segment focus
**10.8 Huawei Investment and Holding Co. Ltd.
*Exhibit 93: Huawei Investment and Holding Co. Ltd. - Overview
*Exhibit 94: Huawei Investment and Holding Co. Ltd. - Business segments
*Exhibit 95: Huawei Investment and Holding Co. Ltd. - Key offerings
*Exhibit 96: Huawei Investment and Holding Co. Ltd. - Segment focus
**10.9 International Business Machines Corp.
*Exhibit 97: International Business Machines Corp. - Overview
*Exhibit 98: International Business Machines Corp. - Business segments
*Exhibit 100: International Business Machines Corp. - Segment focus
**10.10 Microsoft Corp.
*Exhibit 101: Microsoft Corp. - Overview
*Exhibit 102: Microsoft Corp. - Business segments
*Exhibit 103: Microsoft Corp. - Key offerings
&a
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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