Hyperscalers Market by Type and Geography - Forecast and Analysis 2022-2026

Based on Technavio's market sizing methodology, the hyperscalers market size is predicted to surge by USD 45.49 billion from 2021 to 2026 at a CAGR of 25.37%.

This hyperscalers market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. The hyperscalers market report offers information on several market vendors, including Alphabet Inc., Amazon.com Inc., Broadcom Inc., Cisco Systems Inc., Dell Technologies Inc., Hewlett Packard Enterprise Co., Hyper Scalers Pty Ltd., Intel Corp., International Business Machines Corp., Kamatera Inc., Lenovo Group Ltd., Microsoft Corp., NVIDIA Corp., Quanta Computer Inc., Rackspace Technology Inc., SAP SE, Telefonaktiebolaget LM Ericsson, Verizon Communications Inc., VMware Inc., and Oracle Corp. among others.

This report further entails hyperscalers market segmentations, including:

• Type - Solution and service
• Geography - North America, Europe, APAC, South America, and Middle East and Africa

What will the Hyperscalers Market Size be During the Forecast Period?

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Hyperscalers Market: Key Drivers, Trends, and Challenges

The growing investments in data centers is notably driving the hyperscalers market growth, although factors such as data center security challenges 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 hyperscalers industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Hyperscalers Market Driver

• One of the key drivers fueling the hyperscalers market growth is the growing investments in data centers.
• A hyperscale or an enterprise hyperscale data center is a facility that is operated and owned by an organization.
• Hyperscale data centers were built to provide a scalable computer architecture. The architecture of a hyperscale data center consists of various small servers called nodes.
• Enterprises use cost-effective strategies, including more nodes in the data center with an increase in demand, which can help reduce the initial costs of operating data centers. 
• For instance, the annual spending of AWS on data centers across the world has grown steadily. AWS is regarded as the world's largest spender on equipping data centers around the globe.
• Over a nine-year period from 2011 to 2020, AWS reportedly made investments of $35 billion in data centers in Northern Virginia, the data center capital of the world. This represents annual investments worth an average of $3.5 billion in Northern Virginia alone over the past decade. Thus, the increasing investments in data centers will augment the growth of the global hyperscalers market during the forecast period. 

Key Hyperscalers Market Trend

• One of the key hyperscalers market trends supporting market growth is the strategic initiatives of market players.
• Vendors in the global hyperscalers market adopt strategies such as acquiring smaller firms, partnerships, and collaborations to tackle the competition in the market and increase their foothold.
• In March 2022, ITGLOBAL.COM announced the acquisition of Serverspace, a global cloud-based hyperscaler with data centers in six countries, including the US, the Netherlands, and Canada. 
• In September 2021, Novva Data Centers, a data center company and a provider of data center facilities, announced the opening of its new data center facility in Salt Lake City, Utah. The 100-acre campus will have a 330,000 sq ft of data center space and will span 1.5 million sq ft on completion, making it the largest in the state.
• Intense competition in the market is expected to compel the established vendors to increase their market presence. Such activities will drive the growth of the global hyperscalers market during the forecast period. 

Key Hyperscalers Market Challenge

• One of the factors limiting the hyperscalers market growth is the data center security challenges.
• Enterprises need to deploy virtual security measures such as log auditing, heavy data encryption, and access dependent on clearance levels to protect themselves against internal and external attacks and data breaches.
• In hyperscale data centers, activities need to be monitored for anomalies, and any attempts to compromise communications must be reported. The servers in data centers are virtualized, and the workload needs to be managed with no reference to specific hardware. 
• Significantly, data breaches can create more than a financial impact on an enterprise. It can lead to a lack of trust in the vendor, thereby damaging the vendor's image, integrity, and reliability. Thus, such security challenges of data centers can negatively impact the growth of the global hyperscalers market during the forecast period. 

This hyperscalers 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 2022-2026.

Parent Market Analysis

Technavio categorizes the global hyperscalers market as a part of the global Internet services and infrastructure 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 hyperscalers market during the forecast period.

Who are the Major Hyperscalers Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

 

• Alphabet Inc.
• Amazon.com Inc.
• Broadcom Inc.
• Cisco Systems Inc.
• Dell Technologies Inc.
• Hewlett Packard Enterprise Co.
• Hyper Scalers Pty Ltd.
• Intel Corp.
• International Business Machines Corp.
• Kamatera Inc.
• Lenovo Group Ltd.
• Microsoft Corp.
• NVIDIA Corp.
• Quanta Computer Inc.
• Rackspace Technology Inc.
• SAP SE
• Telefonaktiebolaget LM Ericsson
• Verizon Communications Inc.
• VMware Inc.
• Oracle Corp.

 

This statistical study of the hyperscalers market encompasses successful business strategies deployed by the key vendors. The hyperscalers market is fragmented and the vendors are deploying growth strategies such as engaging in strategic initiatives to compete in the market.

Product Insights and News

• Alphabet Inc. - The company offers hyperscalers that supports distributed systems, storage systems, databases, analytics, operating systems, wide-area and data center networking, cluster computing, ML, video acceleration and more. 
• Amazon.com Inc. - The company offers hyperscalers that provide tools and strategies to decouple monolithic applications into microservices and build highly resilient and scalable applications. 
• Cisco Systems Inc. - The company offers hyperscaler namely Cisco Silicon One which is a network processing unit.  

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 hyperscalers 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.

Hyperscalers Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the hyperscalers market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain 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.

Which are the Key Regions for Hyperscalers Market?

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36% of the market's growth will originate from APAC during the forecast period. China and Japan are the key markets for the hyperscalers market in APAC. Market growth in this region will be faster than the growth of the market in other regions.

Another region offering significant growth opportunities for vendors is North America. The continued growth in data center infrastructure solutions in the US will facilitate the hyperscalers market growth in APAC 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 COVID-19 had a positive impact on the regional market during the forecast period. Furthermore, since the onset of the pandemic, many enterprises in the region have transitioned toward the cloud and its applications at a rapid pace. Thus, due to an accelerated need for these technologies, the regional hyperscalers market will continue to witness rapid growth during the forecast period. 

What are the Revenue-generating Type Segments in the Hyperscalers Market?

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The hyperscalers market share growth by the solution segment will be significant during the forecast period. Various solutions offered by hyperscalers include providing cloud, networking, and internet services at scale. This can be done by providing enterprises access to infrastructure through an IaaS model. Some of the leading vendors in the global hyperscaler market include AWS, Google, Microsoft, and Alibaba. These vendors are the major solution providers and mainly dominate cloud services. Such factors will drive the segment growth during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the hyperscalers market size and actionable market insights on post COVID-19 impact on each segment.

 

Hyperscalers Market Scope
Report Coverage	Details
Page number	120
Base year	2021
Forecast period	2022-2026
Growth momentum & CAGR	Accelerate at a CAGR of 25.37%
Market growth 2022-2026	$ 45.49 billion
Market structure	Fragmented
YoY growth (%)	23.75
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	APAC at 36%
Key consumer countries	US, China, Japan, UK, and Germany
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	Alphabet Inc., Amazon.com Inc., Broadcom Inc., Cisco Systems Inc., Dell Technologies Inc., Hewlett Packard Enterprise Co., Hyper Scalers Pty Ltd., Intel Corp., International Business Machines Corp., Kamatera Inc., Lenovo Group Ltd., Microsoft Corp., NVIDIA Corp., Quanta Computer Inc., Rackspace Technology Inc., SAP SE, Telefonaktiebolaget LM Ericsson, Verizon Communications Inc., VMware Inc., and Oracle Corp.
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 forecast period
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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What are the Key Data Covered in this Hyperscalers Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive hyperscalers market growth during the next five years
• Precise estimation of the hyperscalers market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the hyperscalers industry across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of hyperscalers market vendors

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