The data center market is estimated to stand at US$ 30.41 billion in 2024. The market is forecasted to exceed a valuation of US$ 117.24 billion by 2034, recording a CAGR of 14.40%. Data center demand is primarily driven by the exponential upsurge in data consumption and data generation by organizations across multiple industries.
Attributes | Details |
---|---|
Estimated Data Center Market Size (2024) | US$ 30.41 billion |
Forecasted Market Size (2034) | US$ 117.24 billion |
Projected Value CAGR (2024 to 2034) | 14.40% |
The growing need for cloud computing boosts data center demand. Businesses switch to cloud solutions for storage, processing, and software, driving the need for multi-tenant data centers to host these services.
The rise of big data and IoT fuels data center market growth. Data centers are crucial for storing, managing, and analyzing massive amounts of data devices and applications generate.
The surge in eCommerce and digital content drives data center demand. With more people shopping online and streaming media, companies need strong data center infrastructure to handle their digital platforms and services.
Data privacy and security rules lead to investment in data center solutions. Businesses require secure and reliable data center environments to meet strict data protection regulations.
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From 2019 to 2023, the data center market showed strong growth, boasting a 12.70% CAGR. During this period growth accelerated because of the COVID-19 pandemic. This has pushed organizations towards digital transformation.
Around every organization shifted to remote working. This mandated the demand for speedy mobilization of cloud computing to handle the substantial amount of data. This has positively impacted the market outlook.
Attributes | Quantitative Outlook |
---|---|
Data Center Market Size (2023) | US$ 26.83 billion |
Historical CAGR (2019 to 2023) | 12.70% |
Short-term Data Center Market Analysis
The introduction of 5G networks speeds up data transmission and enables new applications. This, in turn, is creating a need for more data center infrastructure to handle the increased data flow. This wireless technology requires quicker downloads, faster access, and seamless streaming, leading to increased demand for high-speed data centers.
Long-term Data Center Market Analysis
Cloud services rely on strong data centers to support applications and computing resources. Cloud providers are prioritizing edge computing, which requires smaller data center infrastructures closer to users.
Consequently, this is leading to a rise in demand for micro data centers. The growing use of cloud services by small, medium, and large businesses is likely to contribute to the market expansion through 2034.
The emergence of micro data centers is likely to create significant opportunities for market players. The rising interest in small, convenient, and modular data centers is expected to create a large foundation for micro data centers.
Micro data centers can be set up or expanded easily as needed, helping companies react swiftly to customer needs without extra costs. This increasing demand for micro data centers is likely to bring about future prospects for the market.
The North America data center market stands out as a moderately performing regional market. The adoption of cloud facilities and the trend toward digital transformation in every field is driving the demand for hyperscale data center edifice in this region. Europe is witnessing continuous and steady growth in demand for data centers.
Countries | Data Center Industry Forecasted CAGR (2024 to 2034) |
---|---|
United States | 11.30% |
Germany | 9.90% |
China | 15.00% |
Demand for data centers in the United States is set to rise with an anticipated CAGR of 11.30% through 2034. Key factors influencing the data center market include:
The Germany data center market is expected to surge at a CAGR of 9.90% through 2034. The topmost dynamic forces supporting the data center adoption in the country include:
The market in China is likely to exhibit a CAGR of 15.00% through 2034. Reasons supporting the growth of the data center market in the country include:
As far as the component of data center is concerned, the hardware segment is likely to acquire 51.80% data center market share. Similarly, the tier 3 data center segment is expected to generate considerable profit in terms of data center tier, possessing a 38.10% revenue share of Data Center industry in 2024.
Segment | Estimated Market Share in 2024 |
---|---|
Hardware | 51.80% |
Tier 3 Data Center | 38.10% |
The hardware segment is anticipated to perform better than others in the market. Here are a few key factors that contribute to its acceptance in the market:
The tier 3 data center segment is set to take a little less than 1/3rd of the market share, a trend validated by factors such as:
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Data center market players implement diverse strategies to gain an edge in this fiercely competitive market. Many companies focus on differentiation through innovative technologies and services.
Some prioritize cost leadership by offering competitive pricing and efficient operations. Others emphasize customer service and support,. Additionally, partnerships and strategic alliances are common strategies to expand market reach and enhance service offerings.
Recent Developments
The market size for data center is forecasted to be worth US$ 30.41 billion in 2024.
The data center market value is projected to surpass US$ 117.24 billion by 2034.
The CAGR of the data center industry is estimated to be around 14.40% through 2034.
China and the United States is the key consumer of data centers as of 2024.
IBM Corporation and Cisco System, Inc. are data center industry leaders.
1. Executive Summary
1.1. Global Market Outlook
1.2. Demand-side Trends
1.3. Supply-side Trends
1.4. Technology Roadmap Analysis
1.5. Analysis and Recommendations
2. Market Overview
2.1. Market Coverage / Taxonomy
2.2. Market Definition / Scope / Limitations
3. Market Background
3.1. Market Dynamics
3.1.1. Drivers
3.1.2. Restraints
3.1.3. Opportunity
3.1.4. Trends
3.2. Scenario Forecast
3.2.1. Demand in Optimistic Scenario
3.2.2. Demand in Likely Scenario
3.2.3. Demand in Conservative Scenario
3.3. Opportunity Map Analysis
3.4. Investment Feasibility Matrix
3.5. PESTLE and Porter’s Analysis
3.6. Regulatory Landscape
3.6.1. By Key Regions
3.6.2. By Key Countries
3.7. Regional Parent Market Outlook
4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034
4.1. Historical Market Size Value (US$ Million) Analysis, 2019 to 2023
4.2. Current and Future Market Size Value (US$ Million) Projections, 2024 to 2034
4.2.1. Y-o-Y Growth Trend Analysis
4.2.2. Absolute $ Opportunity Analysis
5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Component
5.1. Introduction / Key Findings
5.2. Historical Market Size Value (US$ Million) Analysis By Component, 2019 to 2023
5.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Component, 2024 to 2034
5.3.1. Hardware
5.3.1.1. Power Systems
5.3.1.2. Racks
5.3.1.3. Servers
5.3.1.4. Networking Devices
5.3.1.5. Others
5.3.2. Software
5.3.3. Service
5.3.3.1. Integration & Implementation
5.3.3.2. Consulting
5.3.3.3. Support & Maintenance
5.3.3.4. Managed Services
5.4. Y-o-Y Growth Trend Analysis By Component, 2019 to 2023
5.5. Absolute $ Opportunity Analysis By Component, 2024 to 2034
6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Size
6.1. Introduction / Key Findings
6.2. Historical Market Size Value (US$ Million) Analysis By Size, 2019 to 2023
6.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Size, 2024 to 2034
6.3.1. Small Data Center
6.3.2. Mid-Sized Data Center
6.3.3. Large Data Center
6.4. Y-o-Y Growth Trend Analysis By Size, 2019 to 2023
6.5. Absolute $ Opportunity Analysis By Size, 2024 to 2034
7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Industry
7.1. Introduction / Key Findings
7.2. Historical Market Size Value (US$ Million) Analysis By Industry, 2019 to 2023
7.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Industry, 2024 to 2034
7.3.1. IT & Telecom
7.3.2. BFSI
7.3.3. Manufacturing
7.3.4. Healthcare
7.3.5. Media & Entertainment
7.3.6. Others
7.4. Y-o-Y Growth Trend Analysis By Industry, 2019 to 2023
7.5. Absolute $ Opportunity Analysis By Industry, 2024 to 2034
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
8.1. Introduction
8.2. Historical Market Size Value (US$ Million) Analysis By Region, 2019 to 2023
8.3. Current Market Size Value (US$ Million) Analysis and Forecast By Region, 2024 to 2034
8.3.1. North America
8.3.2. Latin America
8.3.3. Western Europe
8.3.4. Eastern Europe
8.3.5. South Asia and Pacific
8.3.6. East Asia
8.3.7. Middle East and Africa
8.4. Market Attractiveness Analysis By Region
9. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
9.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023
9.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034
9.2.1. By Country
9.2.1.1. USA
9.2.1.2. Canada
9.2.2. By Component
9.2.3. By Size
9.2.4. By Industry
9.3. Market Attractiveness Analysis
9.3.1. By Country
9.3.2. By Component
9.3.3. By Size
9.3.4. By Industry
9.4. Key Takeaways
10. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
10.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023
10.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034
10.2.1. By Country
10.2.1.1. Brazil
10.2.1.2. Mexico
10.2.1.3. Rest of Latin America
10.2.2. By Component
10.2.3. By Size
10.2.4. By Industry
10.3. Market Attractiveness Analysis
10.3.1. By Country
10.3.2. By Component
10.3.3. By Size
10.3.4. By Industry
10.4. Key Takeaways
11. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
11.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023
11.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034
11.2.1. By Country
11.2.1.1. Germany
11.2.1.2. UK
11.2.1.3. France
11.2.1.4. Spain
11.2.1.5. Italy
11.2.1.6. Rest of Western Europe
11.2.2. By Component
11.2.3. By Size
11.2.4. By Industry
11.3. Market Attractiveness Analysis
11.3.1. By Country
11.3.2. By Component
11.3.3. By Size
11.3.4. By Industry
11.4. Key Takeaways
12. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
12.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023
12.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034
12.2.1. By Country
12.2.1.1. Poland
12.2.1.2. Russia
12.2.1.3. Czech Republic
12.2.1.4. Romania
12.2.1.5. Rest of Eastern Europe
12.2.2. By Component
12.2.3. By Size
12.2.4. By Industry
12.3. Market Attractiveness Analysis
12.3.1. By Country
12.3.2. By Component
12.3.3. By Size
12.3.4. By Industry
12.4. Key Takeaways
13. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
13.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023
13.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034
13.2.1. By Country
13.2.1.1. India
13.2.1.2. Bangladesh
13.2.1.3. Australia
13.2.1.4. New Zealand
13.2.1.5. Rest of South Asia and Pacific
13.2.2. By Component
13.2.3. By Size
13.2.4. By Industry
13.3. Market Attractiveness Analysis
13.3.1. By Country
13.3.2. By Component
13.3.3. By Size
13.3.4. By Industry
13.4. Key Takeaways
14. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
14.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023
14.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034
14.2.1. By Country
14.2.1.1. China
14.2.1.2. Japan
14.2.1.3. South Korea
14.2.2. By Component
14.2.3. By Size
14.2.4. By Industry
14.3. Market Attractiveness Analysis
14.3.1. By Country
14.3.2. By Component
14.3.3. By Size
14.3.4. By Industry
14.4. Key Takeaways
15. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
15.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023
15.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034
15.2.1. By Country
15.2.1.1. GCC Countries
15.2.1.2. South Africa
15.2.1.3. Israel
15.2.1.4. Rest of MEA
15.2.2. By Component
15.2.3. By Size
15.2.4. By Industry
15.3. Market Attractiveness Analysis
15.3.1. By Country
15.3.2. By Component
15.3.3. By Size
15.3.4. By Industry
15.4. Key Takeaways
16. Key Countries Market Analysis
16.1. USA
16.1.1. Market Share Analysis, 2023
16.1.1.1. By Component
16.1.1.2. By Size
16.1.1.3. By Industry
16.2. Canada
16.2.1. Market Share Analysis, 2023
16.2.1.1. By Component
16.2.1.2. By Size
16.2.1.3. By Industry
16.3. Brazil
16.3.1. Market Share Analysis, 2023
16.3.1.1. By Component
16.3.1.2. By Size
16.3.1.3. By Industry
16.4. Mexico
16.4.1. Market Share Analysis, 2023
16.4.1.1. By Component
16.4.1.2. By Size
16.4.1.3. By Industry
16.5. Germany
16.5.1. Market Share Analysis, 2023
16.5.1.1. By Component
16.5.1.2. By Size
16.5.1.3. By Industry
16.6. UK
16.6.1. Market Share Analysis, 2023
16.6.1.1. By Component
16.6.1.2. By Size
16.6.1.3. By Industry
16.7. France
16.7.1. Market Share Analysis, 2023
16.7.1.1. By Component
16.7.1.2. By Size
16.7.1.3. By Industry
16.8. Spain
16.8.1. Market Share Analysis, 2023
16.8.1.1. By Component
16.8.1.2. By Size
16.8.1.3. By Industry
16.9. Italy
16.9.1. Market Share Analysis, 2023
16.9.1.1. By Component
16.9.1.2. By Size
16.9.1.3. By Industry
16.10. Poland
16.10.1. Market Share Analysis, 2023
16.10.1.1. By Component
16.10.1.2. By Size
16.10.1.3. By Industry
16.11. Russia
16.11.1. Market Share Analysis, 2023
16.11.1.1. By Component
16.11.1.2. By Size
16.11.1.3. By Industry
16.12. Czech Republic
16.12.1. Market Share Analysis, 2023
16.12.1.1. By Component
16.12.1.2. By Size
16.12.1.3. By Industry
16.13. Romania
16.13.1. Market Share Analysis, 2023
16.13.1.1. By Component
16.13.1.2. By Size
16.13.1.3. By Industry
16.14. India
16.14.1. Market Share Analysis, 2023
16.14.1.1. By Component
16.14.1.2. By Size
16.14.1.3. By Industry
16.15. Bangladesh
16.15.1. Market Share Analysis, 2023
16.15.1.1. By Component
16.15.1.2. By Size
16.15.1.3. By Industry
16.16. Australia
16.16.1. Market Share Analysis, 2023
16.16.1.1. By Component
16.16.1.2. By Size
16.16.1.3. By Industry
16.17. New Zealand
16.17.1. Market Share Analysis, 2023
16.17.1.1. By Component
16.17.1.2. By Size
16.17.1.3. By Industry
16.18. China
16.18.1. Market Share Analysis, 2023
16.18.1.1. By Component
16.18.1.2. By Size
16.18.1.3. By Industry
16.19. Japan
16.19.1. Market Share Analysis, 2023
16.19.1.1. By Component
16.19.1.2. By Size
16.19.1.3. By Industry
16.20. South Korea
16.20.1. Market Share Analysis, 2023
16.20.1.1. By Component
16.20.1.2. By Size
16.20.1.3. By Industry
16.21. GCC Countries
16.21.1. Market Share Analysis, 2023
16.21.1.1. By Component
16.21.1.2. By Size
16.21.1.3. By Industry
16.22. South Africa
16.22.1. Market Share Analysis, 2023
16.22.1.1. By Component
16.22.1.2. By Size
16.22.1.3. By Industry
16.23. Israel
16.23.1. Market Share Analysis, 2023
16.23.1.1. By Component
16.23.1.2. By Size
16.23.1.3. By Industry
17. Market Structure Analysis
17.1. Competition Dashboard
17.2. Competition Benchmarking
17.3. Market Share Analysis of Top Players
17.3.1. By Regional
17.3.2. By Component
17.3.3. By Size
17.3.4. By Industry
18. Competition Analysis
18.1. Competition Deep Dive
18.1.1. IBM Corporation
18.1.1.1. Overview
18.1.1.2. Product Portfolio
18.1.1.3. Profitability by Market Segments
18.1.1.4. Sales Footprint
18.1.1.5. Strategy Overview
18.1.1.5.1. Marketing Strategy
18.1.2. Cisco System, Inc.
18.1.2.1. Overview
18.1.2.2. Product Portfolio
18.1.2.3. Profitability by Market Segments
18.1.2.4. Sales Footprint
18.1.2.5. Strategy Overview
18.1.2.5.1. Marketing Strategy
18.1.3. HPE
18.1.3.1. Overview
18.1.3.2. Product Portfolio
18.1.3.3. Profitability by Market Segments
18.1.3.4. Sales Footprint
18.1.3.5. Strategy Overview
18.1.3.5.1. Marketing Strategy
18.1.4. Dell Technologies
18.1.4.1. Overview
18.1.4.2. Product Portfolio
18.1.4.3. Profitability by Market Segments
18.1.4.4. Sales Footprint
18.1.4.5. Strategy Overview
18.1.4.5.1. Marketing Strategy
18.1.5. Hitachi Ltd
18.1.5.1. Overview
18.1.5.2. Product Portfolio
18.1.5.3. Profitability by Market Segments
18.1.5.4. Sales Footprint
18.1.5.5. Strategy Overview
18.1.5.5.1. Marketing Strategy
18.1.6. NTT Communications
18.1.6.1. Overview
18.1.6.2. Product Portfolio
18.1.6.3. Profitability by Market Segments
18.1.6.4. Sales Footprint
18.1.6.5. Strategy Overview
18.1.6.5.1. Marketing Strategy
18.1.7. Schneider Electric
18.1.7.1. Overview
18.1.7.2. Product Portfolio
18.1.7.3. Profitability by Market Segments
18.1.7.4. Sales Footprint
18.1.7.5. Strategy Overview
18.1.7.5.1. Marketing Strategy
18.1.8. Comarch SA
18.1.8.1. Overview
18.1.8.2. Product Portfolio
18.1.8.3. Profitability by Market Segments
18.1.8.4. Sales Footprint
18.1.8.5. Strategy Overview
18.1.8.5.1. Marketing Strategy
18.1.9. ABB
18.1.9.1. Overview
18.1.9.2. Product Portfolio
18.1.9.3. Profitability by Market Segments
18.1.9.4. Sales Footprint
18.1.9.5. Strategy Overview
18.1.9.5.1. Marketing Strategy
18.1.10. Huawei Technologies Co., Ltd.
18.1.10.1. Overview
18.1.10.2. Product Portfolio
18.1.10.3. Profitability by Market Segments
18.1.10.4. Sales Footprint
18.1.10.5. Strategy Overview
18.1.10.5.1. Marketing Strategy
19. Assumptions & Acronyms Used
20. Research Methodology
Oil and Gas
December 2022
REP-GB-1952
250 pages
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