The global data center market is expected to be valued at around US$ 77 Bn in 2022. Revenue generation from data centers is likely to accelerate at a high CAGR of 13.8% to top US$ 279 Bn by 2032.
Demand for new data centers is likely to surge at a CAGR of 14.3%. The global ICT market was valued at around US$ 5 trillion in 2020, with data centers holding 1.38% share of the same.
Given the growing demand for cost-effective and energy-saving data centers, as well as increased efficiency and sustainability, the idea of green data centers has gained pace. Data centers are likely to see considerable growth opportunities throughout mature and emerging regions, owing to digitization in every industry. Market participants are capitalizing on the digitization megatrend. Market leaders’ primary goal is to enrich their services through value addition at each node of their offers.
On the back of increased company investments and the availability of improved IT infrastructure, the North American area will maintain its supremacy in the data center architectural space. In terms of both absorption and construction, the region has seen an increase in propagation in the United States.
According to the Economic Report, the San Francisco Bay Area has surpassed Washington, DC, and Dallas as the third-largest data center business in the United States. Around 120 data centers and 335 service providers with nine network fabrics are located in the Bay Area.
As countries in the Middle East and Africa (MEA) strive to change their economies, technology is likely to play a key role, with cloud services at the forefront of this shift. Companies are also contemplating investments in MEA in order to gain a large piece of the region’s cloud computing market.
For example, Microsoft Corporation intends to enter Middle Eastern markets such as Abu Dhabi and Dubai in order to establish cloud data centers there.
“Mounting cloud-based services has boosted development of digital infrastructure, thereby accelerating the need for new data centers across regions,” says a Fact.MR analyst.
- By consulting, network design is predicted to have a 25% market share in data centers, according to consultancy.
- By type, new data centers are estimated to generate a market value of US$ 200 billion.
- The data center sector is predicted to have a market share of almost 35% in North America.
- The data center industry is estimated to generate a market value of US$ 11 billion in MEA.
- The top four countries driving data center demand are the United States, Japan, China, and India.
- Growing trend of virtualization and need for high efficiency quotient regarding data and information security and deployment will increase the demand for data centers
- Increasing adoption of advanced technologies such as AI and IoT and rising digitization in data centers will drive the demand across healthcare and government sectors.
Major corporations have extensive customer networks all around the world. Market leaders are IT behemoths with enormous finances, allowing them to invest extensively in research and development. Furthermore, these firms provide a wide range of services that are tailored to the needs of individual customers.
Market players use agreements and contracts, collaborations, and new product development as growth tactics to maintain their market position.
- In 2019, Qualcomm Technologies, Inc. released Cloud AI 100, an AI-based chip family. The ASIC family is available in a number of thermal designs and form factors to suit a variety of applications. This newly released chip has been enhanced with improved AI functions to improve device performance.
Some of the leading players in the market profiled by Fact.MR are:
- IBM Corporation
- Google LLC
- Equinix, Inc.
- AT&T Inc.
- Apple Inc.
- Cisco Systems Inc.