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Data Center Infrastructure (DCI) Market - By Product (Cooling, Power, IT Racks & Enclosures, LV/MV Distribution, Networking Equipment, DCIM), By Component (Hardware, Software, Services), By Application & Forecast 2023 – 2032

  • Report ID: GMI2580
  • Published Date: Jul 2023
  • Report Format: PDF

Data Center Infrastructure Market Size

Data Center Infrastructure Market size was valued at USD 57 billion in 2022 and is predicted to grow at a CAGR of over 12% between 2023 and 2032. The commendable growth of digital data and the increasing demand for data storage and processing capabilities are driving the expansion of data center infrastructure. With the proliferation of cloud computing, big data analytics, artificial intelligence, and the Internet of Things (IoT), organizations across industries require robust and scalable data centers to handle the immense volume of data generated.

 

Data Center Infrastructure Market

To understand key trends  

Moreover, the shift towards edge computing is playing a crucial role in driving the data center infrastructure industry expansion. As the need for real-time data processing and reduced latency becomes paramount, edge computing brings computing resources closer to the data source, enabling faster and more efficient data processing. In addition, data center services, including colocation, managed hosting, and cloud services, offer businesses scalable and secure infrastructure products. Meanwhile, data center equipment, such as servers, storage systems, and networking devices, provide the foundation for reliable data processing and storage. Together, these elements work in harmony to support the smooth operation of data centers and enable organizations to deliver reliable and high-performance digital services.

 

Building and maintaining data centers can be expensive due to the need for specialized equipment, power supply, cooling systems, and security measures. The high upfront and ongoing operational costs can be challenging for organizations, especially smaller businesses with limited budgets. Besides, data centers require significant physical space to accommodate racks, servers, cooling systems, and other infrastructure components.

 

This makes finding suitable space for new data centers challenging in densely populated areas or urban environments and may limit the expansion of data center infrastructure in certain regions. However, the adoption of advanced cooling techniques, efficient power management systems, and renewable energy sources is driving innovation in data center infrastructure, favoring market growth.

 

COVID-19 Impact

The COVID-19 pandemic has had a notable impact on the data center infrastructure market. With the surge in remote work, online education, and digital activities, the demand for data storage, processing, and connectivity skyrocketed. Organizations and service providers had to quickly scale up their data center infrastructure to meet the increased demand for cloud services and ensure reliable connectivity. The pandemic highlighted the critical role of data centers in supporting remote operations and accelerating digital transformation. As a result, investments in data center infrastructure, especially in cloud-based products, witnessed significant growth during the pandemic.

 

Data Center Infrastructure Market Trends

The growing trend of data center consolidation and migration to colocation facilities is propelling the market. Many organizations are opting to outsource their data center operations to colocation providers to reduce costs, improve scalability, and focus on their core business functions. This shift towards colocation is driving the demand for robust infrastructure products to support these facilities, positively influencing the industry landscape. Besides, consistent technological breakthroughs and evolving strategic outlook will stimulate the industry growth trajectory through 2032.

 

Data Center Infrastructure Market Analysis

Data Center Infrastructure (DCI) Market Revenue, By Component
To understand key trends  

Based on component, the data center infrastructure market is bifurcated into hardware, software, and services. The software segment generated revenues over USD 2 billion in 2022 owing to the escalating need for efficient data management and automation, the growth of cloud computing, and virtualization. In addition, the increasing complexity of data center operations, the demand for real-time analytics and monitoring, and the focus on scalability and flexibility in managing data center resources have fueled the adoption of software products. These helps optimize data center operations, enhance resource utilization, and provide seamless management and control of infrastructure components, thus, propelling segment gains.

 

Data Center Infrastructure (DCI) Market Revenue, By Application,
To understand key trends  

Based on application, the data center infrastructure market is classified into BFSI, Colocation, Energy, Government, Healthcare, Manufacturing, IT & telecom and others. The data center infrastructure industry share from the IT & Telecom segment is anticipated to grow at over 10% CAGR during the forecast period, driven by the exponential growth of data traffic and the expansion of 5G networks and IoT devices. The need for high-speed connectivity and low latency, the increasing demand for cloud services, and the requirement for robust security and data storage product will support the expansion of data center infrastructure in this space. Organizations in the IT and telecom sectors are investing in data center infrastructure to support their expanding network capacities, handle massive data volumes, ensure reliable and fast connectivity, and meet the evolving demands of digital services, streamline segment growth.

 

Asia Pacific Data Center Infrastructure Market Revenue,
To understand key trends  

Asia Pacific data center infrastructure market held a significant share of around 20% in 2022 due to rapid digital transformation in various industries, the growing adoption of cloud computing and big data analytics, and the increasing demand for internet services and mobile connectivity. Additionally, the rise of e-commerce and digital payments and the emergence of smart cities in the region have augmented the need for robust data center infrastructure to support the region's booming digital economy and address the growing data storage, processing, and connectivity requirements.

 

Data Center Infrastructure Market Share

Major companies operating in the data center infrastructure market include:

  • ABB Ltd.
  • Black Box Corporation
  • Cisco Systems, Inc
  • ClimateWorx International
  • Cyber Power Systems, Inc.
  • Degree Controls, Inc.
  • Dell Technologies, Inc.
  • Eaton Corporation
  • Green Revolution Cooling, Inc.
  • Hewlett Packard Enterprise Company
  • Huawei Technologies Co. Ltd.
  • IBM Corporation
  • Mitsubishi Electric Corporation
  • Panduit Corporation
  • Rittal GmbH & Co. KG.
     

Data Center Infrastructure Industry News

  • In 2022, Schneider announced the launch of EcoStruxure Data Center Operation 4.0 platform in 2022. This platform provides data center operators with a single view of their infrastructure, which can be used to improve efficiency and manage risk.
     

The data center infrastructure market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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By Product

  • Cooling
  • Power
  • UPS 
  • IT racks & enclosures
  • LV/MV distribution
  • Networking equipment
  • DCIM

By Component

  • Hardware
  • Software
  • Services

By Application

  • BFSI
  • Colocation
  • Energy
  • Government
  • Healthcare
  • Manufacturing
  • IT & telecom
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Poland
    • Benelux
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • Singapore
  • Latin America
    • Brazil
    • Argentina
    • Chile
    • Colombia
  • MEA
    • GCC
    • South Africa

 

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

Global data center infrastructure (DCI) industry size was USD 57 billion in 2022 and will grow at over 12% CAGR between 2023 and 2032 driven by the increasing demand for data storage and processing capabilities
Data center infrastructure industry size from the IT & telecom application segment is anticipated to witness over 10% CAGR from 2023-2032 propelled by the exponential growth of data traffic and the expansion of 5G networks and IoT devices.
Asia Pacific held 20% of the DCI industry share in 2022 due to rapid digital transformation in various industries, the growing adoption of cloud computing and big data analytics, and the increasing demand for internet services and mobile connectivity.
Few of the major data center infrastructure industry players include ABB Ltd., Black Box Corporation, Cisco Systems, Inc, ClimateWorx International., Cyber Power Systems, Inc., Degree Controls, Inc., Dell Technologies, Inc., Eaton Corporation, and Green Revolution Cooling, Inc.

Data Center Infrastructure Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 14
  • Tables & Figures: 289
  • Countries covered: 19
  • Pages: 262
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