The global data center transformation market is anticipated to reach a value of USD 10.05 billion in 2023 and expand at a CAGR of 13.5% between 2023 and 2033. The global market would be worth USD 35.65 billion in 2033. Globally, providers of data centers are gradually transforming their facilities to improve overall effectiveness while lowering operating expenses.
The increasing use of digitalization has also compelled IT companies to transform their current IT infrastructure into effective cloud-based architectures. As a result, there is a greater need for data center transformation services, which make it possible to switch smoothly from on-premises systems to cloud-based designs.
The load placed on data centers is growing due to the fast-expanding usage of the cloud, the Internet of Things, and big data analytics across several organizations as a part of their digital transformation plan.
Given the proliferation of communication devices and the growing number of businesses converting to SaaS-based apps, data center traffic to is rising globally.
| Attributes | Details |
|---|---|
| Data Centre Transformation Market CAGR (From 2023 to 2033) | 13.5% |
| Data Centre Transformation Market Size (2023) | USD 10.05 billion |
| Data Centre Transformation Market Size (2033) | USD 35.65 billion |
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Data center traffic is rising globally as more businesses move to SaaS-based apps and the number of connected devices continues to grow quickly. Popular services like social networking, streaming video, and Internet search are increasingly used by customers.
Enterprise resource planning (ERP), analytics, collaboration, and other digital enterprise solutions, on the other hand, are being adopted by corporate users. The causes listed below stimulate the data center transformation market, which in turn generates new demands for data centers.
One of the major drivers fueling the expansion of the data center transformation market is the rise in data center traffic.
The key players in the market are well known for investing in cutting-edge data center technology and building new data centers to provide cloud services to businesses and governments, among other verticals.
Accelerated investments across data centers are driving the market because of the requirement to support digital transformation initiatives in a post-pandemic environment.
The global data center transformation market is driven by such investments across the data center during the forecast period.
Principal Consultant
The data center transformation market expansion is constrained by a shortage of competent labourers and problems with regulatory and portability compliance. Customers are unable to manage utilities, physical security, building upkeep, or other physical components because colos are managed by a distinct organization.
Location is out of the provider's control; they fully manage their data centers using the public cloud, taking care of equipment upkeep and upgrades. In light of this, the data center transformation market is experiencing growth barriers.
| Segment | Consolidation Services |
|---|---|
| Market Share | 36.2% |
Consolidation, automation, optimization, and infrastructure management services are the different market segments based on services. The sector for consolidation services held a significant revenue share of 36.2% and is anticipated to maintain its dominance during the forecast period.
The segment's expansion can be due to the increased focus on lowering data centre bandwidth and power consumption as well as the rising demand for disaster recovery and data backup services.
| Attributes | Details |
|---|---|
| Top Segment | IT and Telecommunications |
| Segment Size 2033 | USD 8176.48 million |
| Segment CAGR | 12.0% |
The market is divided into BFSI, IT and telecommunications, government and defence, manufacturing, oil and gas, and other verticals based on these divisions.
The IT and telecommunication segment of the verticals section earned USD 8176.48 million in revenue by 2033, and it is predicted that this segment would grow at a CAGR of 12.0% over the projected period. IT and telecom data centres are currently undergoing a transition as a result of the growing demand for scalability, rapid roll-outs, quicker time to market, and upgrades.
| Attributes | BFSI |
|---|---|
| CAGR | 36.2% |
During the projection period, the BFSI segment is anticipated to develop at the significant CAGR of about 14.0%. This can be linked to the increasing use of online and contactless payments, which are becoming more widespread in developing nations.
| Attributes | Details |
|---|---|
| Top Segment | Cloud Service Providers |
| Segment Share | 46.2% |
| Segment CAGR | 13.0% |
The market is divided into cloud service providers, colocation providers, and businesses based on the end user. The category of cloud service providers, which accounted for 46.2% of total revenue, is expected to increase at the substantial CAGR of more than 13.0% throughout the course of the projection period.
This market is expanding as a result of organisations becoming more aware of the advantages of scalability, flexibility, and not being constrained by on-premises servers, as well as the dependability of several data centres with numerous redundancies.
| Attributes | Colocation Providers |
|---|---|
| CAGR | 14.2% |
Over the projected period, the category for colocation providers is likely to experience a considerable CAGR of 14.2%. Since data centres are less expensive than building their own computing infrastructure, smaller companies with limited IT resources are more likely to choose this option.
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| Attributes | Details |
|---|---|
| Market Share | 44.9% |
| CAGR | 13.0% |
With a 44.9% market share, North America led the industry and is projected to grow at a CAGR of more than 13.0% during the forecast period. The primary forces driving market progress in this region are the early construction of data centres and significant investments in technical improvements.
The market is driven by the dominance of this region in the industry and the growing desire to cut operating expenses. Data centre transformation solutions can be adopted because of this. It is anticipated that the growing use of data centres in the BFSI, healthcare, and education sectors would significantly contribute to the industry's growth.
| Region | Asia Pacific |
|---|---|
| CAGR | 14.0% |
During the forecast period, Asia Pacific is anticipated to register a lucrative CAGR of over 14.0%. The fast-growing population in the area and the emergence of e-commerce are both responsible for the market expansion in the area. The supportive government measures are promoting market expansion. The growth of mobile data centres in Asia has been fuelled by the emergence of cloud computing.
As emerging nations speed up digital transformation, the global data centre market may expand. Consequently, developing nations like China and India are making a big contribution to the growth of the data centre sector. Technology advancements are bringing about this era of digital transformation, and innovative techniques are being developed to establish effective data centres and related solutions.
The demand for data centres in the country is primarily being driven by causes such as the expanding cloud computing industry in India, rising internet usage, government laws regarding data generated in the nation, and rising foreign investment.
Over the course of the forecast period, the study market vendors might have a huge advantage due to the digital development of end-user businesses nationwide and state government measures to encourage the construction of data centres in their states for economic growth.
| Attributes | Details |
|---|---|
| CAGR | 13.1% |
| Market Size 2033 | USD 18.53 billion |
In 2023, the size of the Europe market is projected to be USD 18.53 billion. It is anticipated to grow by 13.1% CAGR between 2023 and 2033. The considerable demand for data centre transformation from hyper-scale data centre users like big internet companies and public cloud service providers is what propels the market.
In developed economies like the UK, Germany, and France, introducing disruptive technologies like autonomous vehicles, the Internet of Things (IoT), cloud computing and advanced robotics has raised the demand for edge computing solutions.
The data centre transformation providers now have the chance to offer these services in remote parts of Europe with improved connectivity thanks to the development of 5G, which is fuelling the market's expansion.
Due to the large number of market participants competing in domestic and global markets, the data centre transformation market is hugely competitive. Due to the large number of market participants competing in domestic and global markets, the data centre transformation market is exceptionally competitive.
IBM Corporation, Cisco Systems, Inc., and Dell EMC (Dell Inc.) are a few of the market's main participants.
Recent Development:
Agreement:
| Date | June 2019 |
|---|---|
| Company | Microsoft Corporation and Oracle Corporation |
| Details | In June 2019, it was announced that Microsoft Corporation and Oracle Corporation had achieved an understanding to enable high-speed connections between their respective data centres to connect their two cloud computing services. |
Expansion:
| Date | May 2019 |
|---|---|
| Company | Microsoft Corporation |
| Details | Microsoft Corporation said in May 2019 that it would construct some of its most cutting-edge data centers in Sweden. It is intended for these new data centres in Sandviken and Gävle to rank among the greenest in the entire globe. Microsoft is constructing these data centres to accommodate the requirements of upcoming cloud services. |
Launch:
| Date | December 2021 |
|---|---|
| Company | IBM |
| Details | To speed up the hybrid cloud, IBM unveiled the IBM Z and Cloud Modernization Center in December 2021. To assist IBM Z clients in accelerating the digitalization of their apps, processes, and data in a hybrid cloud environment, it serves as a digital portal to numerous resources, partners in the ecosystem, training opportunities, and tools. |
Partnership/Collaboration:
| Date | October 2022 |
|---|---|
| Company | Kyndryl |
| Details | Kyndryl collaborated with Dell Technologies and Microsoft Corporation to introduce an integrated hybrid cloud solution in October 2022. Utilizing Dell's infrastructure, Kyndryl's managed services, and Microsoft Azure, the answer is made to help clients in data centre, remote, and mainframe settings accelerate their cloud transformation efforts. |
The iron chelating drugs segment is highly preferred in the global market.
The current CAGR of the global market is 13.5%.
The United States is capturing a huge revenue in the global market.
The cloud service providers segment contributes a maximum share of the market.
Asia Pacific is a significantly growing region capturing a CAGR of 14%.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Service Types 5.1. Automation Service Types 5.2. Optimization Service Types 5.3. Consolidation Service Types 5.4. Infrastructure Management Service Types 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Tier Type 6.1. Tier 1 6.2. Tier 2 6.3. Tier 3 6.4. Tier 4 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End-Use 7.1. IT & Telecom 7.2. BFSI 7.3. Healthcare 7.4. Energy 7.5. Manufacturing 7.6. Government 7.7. Others 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. South Asia 8.5. East Asia 8.6. Oceania 8.7. Middle East & Africa (MEA) 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. IBM Corporation 18.2. Cisco Systems, Inc. 18.3. Dell EMC 18.4. Microsoft Corporation 18.5. Schneider Electric SE 18.6. HCL Technologies 18.7. Cognizant 18.8. Accenture 18.9. Atos 18.10. Wipro 18.11. Bytes Technology Group 18.12. General Datatech 18.13. Insight Enterprise 18.14. Tech Mahindra 18.15. NTT Communications 19. Assumptions & Acronyms Used 20. Research Methodology
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Data Center Transformation Market
