Data Center Market Key Growth Factors and Trends Forecast 2030
The growth of e-commerce, digitalization of processes in business as well as the rapid growth of technology like IoT machine learning, IoT, and artificial intelligence produce huge quantities of data. These data are stored and accessed by data centers.
This is the main reason behind the market. However, growing concerns regarding data privacy coupled with the growing need for services managed have acted as obstacles.
Data Center Market is estimated to increase at a CAGR of 12.9% from $ 79.45 Billion in 2023 to $ 296.24 Billion by 2030
Competitive Landscape of the Data Center Market Analysis
- IBM Corporation
- Google LLC
- Equinix, Inc.
- AT&T Inc.
- Apple Inc.
- Cisco Systems Inc
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Trend Analysis
Given the huge quantity of data generated by companies It is easy to see why companies have invested in data centers. However, there's many more aspects to a data center that just storage solutions and servers.
There are heating, cooling and humidity-control equipment, uninterruptible power source systems ventilation; pressurization; the safety of fire utility service planning, and many more. The sheer complexity of these facilities implies that there's an enormous chance of a mistake in the course of construction, which could cause costly delays and adverse effects on the performance of your business.
Therefore the market for data centers is witnessing a high need for physical infrastructure, such as UPSes, uninterruptible power supply (UPSes) along with thermal solutions.
According to an Dell'Oro Group report, revenue for these products is increasing quickly as data center infrastructure managers are looking to increase the number of redundant systems and lower operating costs.
Another reason driving the market for data centers is the growing usage of computing at the edge. These data centers can be close to the customers, which could assist in reducing the amount of latency. For instance the New York City-based data center could meet the requirements of more than 22 million people within the region, rather than having to provide the same content to an international public.
This could reduce the cost of international delivery, reduce the congestion of networks and improve the customer experience. This strategy is also being used by a range of other industries, including manufacturing and financial services.
Growth Factor
Data centers are at the core of modern digital infrastructure providing technology like the Internet of Things, virtual universes, and chatbots that are powered by AI. They consume a lot of energy and produce CO2 emissions. The negative environmental impacts of energy-intensive facilities is an important issue for many businesses.
The need for data center space is increasing across the globe because of the growing technological advancements in business processes and cloud-based services. However, investment in this market is subject to significant fluctuations due to the cost for one-time costs of setting up these data centers exposes projects to economic uncertainty.
As businesses strive to remain relevant in the digital age that is a constant battle, the demand for fast networks and massive capacity storage increases.
This results in large-scale infrastructure projects, such as structures with substantial mechanical electrical, piping and (MEP) installation. This in turn increases the energy usage, which in turn contributes to increasing operational costs for data centers.
Furthermore to this, there are a growing number of requirements from the regulatory world that are driving actions and planning. For instance, California requires data centers of a certain size to reveal their environmental impacts.
This pressures the sector to minimize its carbon footprint by implementing energy efficiency, including renewable energy sources into power supply and promoting environmental consciousness among the end users and contractors.
With budgeting pressures increasing it is imperative for administrators and owners of data centers to come up with ways to cut costs and improve efficiency. This is possible via datacenter virtualization to enhance the efficiency of servers, diversifying suppliers networks, and taking advantage of other components.
Segmentation
Segments Covered in the Data Center Market Report
By Type:
- New Data Centers
- Internal Data Centers
- Service Provider Data Centers
- Data Center Rebuild
By Application:
- Data Centers for IT & Telecom
- Data Centers for BFSI
- Data Centers for Governments
- Data Centers for Healthcare
- Others
By Consulting:
- Network Design
- Network Design & Planning
- Security Consulting
- Network Analysis
- Benchmarking
- Needs Assessment
- Operation Assessment
- Process Improvement
By Integration:
- Project Management
- Installation
- Test & Debug
- Custom Software Development
- Security Implementation
- Change Management
- System Configuration
- Training & Site Preparation
The industry of data centers is a multibillion-dollar market. Many big companies are involved in large-ticket acquisition deals. The rise of the industry is driven by a rise in the demand for cloud-based services, which is fueled with data centres.
Government agencies and large corporations produce huge quantities of data each day and require storage and process the data. This can be accomplished on-premise or in a cloud hosted by a third party or in edge locations.
In addition to these typical applications, a lot of companies are utilizing cloud-based data centers in order to facilitate emerging applications like blockchain technology, autonomous vehicles as well as virtual reality.
This rapid expansion of technologies has prompted increased investment for data centers be it on-premises as well as in the cloud or in remote sites.
Regionally it is the Americas makes up a large portion of the pipeline value for data centers construction projects. Projects located in Virginia are especially significant, accounting for approximately 5 percent of the total US pipe value.
The Americas is also the biggest market for cooling solutions for data centers. The increasing amount of devices connected is causing the need for these cooling solutions that aid in keeping data centers cool, without affecting their operation. It is expected that the North American market is projected to account for a substantial portion of the global market due to the large number of data center hyperscales within the region.
Regional Perspective
Data centers attract more local businesses and increasing local tax revenue. They provide jobs, both in operational and in construction, and generate significant revenues for towns, cities counties, states and counties.
They also aid in the US economic growth by initiating technological advancements and encouraging other companies to invest in the sector and resulting in new investment and more jobs.
The growing acceptance of digitalization around the globe has led to a strong demand for capacity in data centers. But, obstacles like the high cost of capital, unfavorable reimbursement models and the inadequate knowledge of developing countries are likely to limit market growth.
Additionally the data centers consume an enormous amount of energy, straining power grids across many markets. This has raised concerns about climate change, and led to the creation of greener alternatives like district heat reuse and limitations on the amount of power consumed.
Despite these obstacles, the global market for data centers is expected to grow rapidly. It is expected to grow rapidly in the Asia Pacific region is expected to dominate the market due to its thriving IT infrastructure as well as the government's initiatives, as well as the growing number of digital customers.
In the US the demand for data center facilities is expected to be stable despite increasing competition and increasing costs for construction. However, the higher cost of land and issues with power supply will hinder the development of the new centers, especially in the primary markets like Virginia.
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