Data Center Infrastructure Market Size By Solution (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), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 - 2027

Published Date: Feb 2021  |  Report ID: GMI2580  |  Authors: Preeti Wadhwani, Saloni Gankar

Report Format: PDF   |   Pages: 300   |   Base Year: 2020




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Data Center Infrastructure Market size surpassed USD 50 billion in 2020 and is poised to grow at a CAGR of 11.5% from 2021 to 2027.
 

Data center infrastructure is a physical facility that houses critical applications and data. A data center infrastructure includes servers, switches, firewalls, storage systems, application-delivery controllers, and routers. Data center components such as UPS, cooling systems, power systems, backup generators, fire suppression, connections, and ventilation require infrastructure to support hardware and software.
 

Data Center Infrastructure Market Research Report

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Increasing demand for high performance cooling, power, network, and security systems among cloud service providers is driving the market growth. Cloud service providers are highly investing in edge data centers to support compute-intensive applications such as AI, IoT, and big data. The data center infrastructure enhances the agility and provides services that fuel maximum value, revenue growth, and energy efficiency.
 

Several manufacturers in the industry are introducing cost-effective and efficient data center infrastructure solutions for business-critical applications. For instance, in November 2019, Schneider Electric SE announced the launch of Galaxy VS 3-phase UPS, a scalable and high-performance solution designed for edge, small, and medium data centers.
 

Technological advancements and innovations in power and cooling solutions are propelling the data center infrastructure market expansion. The implementation of advanced technologies, such as AI and machine learning, in cooling systems is improving the performance and availability of data center infrastructure. These technologies help data center operators to improve safety & efficiency and reduce energy consumption.
 

The market leaders are launching new and innovative solutions to maintain optimal performance of the computing infrastructure. For instance, in August 2019, Huawei Technologies Co., Ltd. launched iCooling intelligent thermal management solution for data centers. The system incorporates AI and big data to reduce the energy consumption of data centers while enabling smart cooling and lowering PUE.
 

The coronavirus (COVID-19) pandemic had a slight impact on the market value in the first and second quarter of 2020. The stringent lockdowns imposed in several countries caused temporary closure of industries and construction of new data centers. However, with resumption of industrial activities, the market regained traction in the third quarter of 2020.
 

With the rise in internet consumption amid COVID-19 pandemic, data centers witnessed an influx of traffic as more businesses moved their operations online and a large number of people adopted at-home entertainment services. This resulted in an increased demand for data center infrastructure solutions in the market for ensuring continued operations of facilities.
 

Data Center Infrastructure Market Report Coverage
Report Coverage Details
Base Year:2020Historical Data for:2016 to 2020
Market Size in 2020:around USD 50 BillionForecast Period:2021 to 2027
Forecast Period 2021 to 2027 CAGR:11.5%No. of Pages:300
2027 Value Projection:over USD 100 Billion Tables, Charts & Figures:279
Geographies covered (20):U.S., Canada, Mexico, UK, Germany, France, Spain, Poland, Benelux, China, India, Japan, Singapore, Australia, Brazil, Argentina, Chile, Colombia, GCC, South Africa
Segments covered:Solution, Component, Application and Region
Growth Drivers:
  • Increasing usage of online services globally
  • Rapid infrastructure development of various end-use segments in North America and Europe
  • Widespread adoption of cloud computing and IoT in Asia Pacific
  • Increasing number of new data centers in South America
  • Rise in the number of SMEs in India
  • Penetration of colocation data centers in Brazil
  • Presence of free trade zones in Colombia
  • Business-friendly regulations in Chile
  • Public sector growth in Peru
  • Rising urbanization in MEA
Pitfalls & Challenges:
  • Balancing cost controls with efficiency
  • Slowdown in the semiconductor industry
  • Rising cost for raw materials and skilled labor

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Rise in power consumption in data centers will spur the demand for energy-efficient power solutions in the industry

In the U.S., data center infrastructure market for power solutions will showcase more than 7% growth rate till 2027 on account of the rising demand for High-Performance Computing (HPC) data centers that incorporate more powerful processors and a higher density server. GPUs and AI processing chips generate significantly more heat compared to traditional CPUs, increasing energy consumption in data centers.
 

According to Energy Technologies Area (ETA), an organization that works under the U.S. Department of Energy (DoE), data centers in the U.S. consumed around 73 billion kWh in 2020. To reduce power consumption and environmental impact, the data center operators are adopting smaller and compact-sized systems.
 

Large enterprises expanding their data center infrastructure will surge the demand for hardware solutions in the industry

Data Center Infrastructure Market Size

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The India data center infrastructure market is predicted to attain a CAGR of 17% through 2027 impelled by increasing expansion of data centers across the country. For instance, in June 2020, Oracle Corporation launched the second data center in India to meet the growing demand for secure cloud services among its existing and new clients. Similarly, in January 2020, Yotta Infrastructure Solutions constructed Yotta NM1 data center to expand its presence in the India market. The data center has an overall capacity of 30,000 racks and 210 MW power. The rise in expansion of data centers is augmenting the market demand for hardware solutions including physical server, racks & chassis, cables, storage, and networking. The data center operators demand reliable and cost-effective hardware solutions to improve the efficiency of data center infrastructure.
 

Rise in expansion of colocation service providers is boosting the demand for advanced data center infrastructure solutions in the market

Leading players in the data center colocation market are rapidly adding more capacity to their infrastructure to accommodate the growing need of enterprise and hyperscale data center facilities. They are establishing large scale data center facilities to enable SMBs easily rent out their IT space and solutions. For instance, in October 2019, Coresite launched a new data center campus in Virginia, U.S. to provide customers cloud connectivity and deliver low latency and high-performance services. The company aims to add around 50 MW of the capacity to the 22-acre land with the Virginia campus projected to reach over 100 MW at full build-out. The increasing expansion of colocation service providers in the market is driving the demand for new sets of storage devices, servers, software, and network equipment.
 

Favorable economic conditions and increasing investments by market players will foster the growth for European region

Europe Data Center Infrastructure Market

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Europe data center infrastructure market accounted for over 30% of revenue share in 2019 led by rise in the number of data centers coupled with growing expansion by various industry leaders. The availability of land, renewable energy sources, tax benefits, and favorable climate condition has encouraged cloud and colocation service providers to establish data center facilities across the region.
 

The increase in business size of major companies in the region is growing the demand for data center infrastructure solutions. The market participants are engaged in developing energy-efficient solutions for data center facilities.
 

Launch of innovative solutions is a key strategy of players operating in the industry

Key companies operating in the market include Vertiv Group Co., Dell, Inc., Hewlett Packard Enterprise Company, Eaton Corporation, Huawei Technologies Co., Ltd., Schneider Electric SE, Panduit Corporation, Cisco Systems, Inc., ABB Ltd., Black Box Corporation, Degree Controls, Inc., and ClimateWorx International. The industry leaders are focusing on strengthening their market reach to cater to the growing demand for efficient data center infrastructure solutions across the globe.
 

The data center infrastructure market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027 for the following segments:

Market, By Solution

  • Cooling
  • Power
    • UPS
  • IT Racks & Enclosures
  • LV/MV Distribution
  • Networking Equipment
  • DCIM

Market, By Component

  • Hardware
  • Software
  • Services

Market, By Application

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

The above information has been 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
    • Singapore
    • Australia
  • South America
    • Brazil
    • Colombia
    • Chile
    • Argentina
  • MEA
    • GCC
    • South Africa

       

Frequently Asked Questions (FAQ) :

The market for data center infrastructure was worth more than USD 50 billion in 2020 and is anticipated to record 11.5% CAGR between the forecast years 2021-2027.
From the power solutions segment, the U.S. market share is expected to witness around 7% CAGR up to 2027 with increased demand for High-Performance Computing data center facilities.
It was estimated that Europe held more than 30% of global data center infrastructure industry share during 2020 and will expand with increased access to renewable power and available tax benefits.
The market share in India is expected register around 17% CAGR between 2021-2027 with continuous expansion of data center providers in the country.

Premium Report Details

  • Published Date: Feb 2021
  • Pages: 300
  • Tables: 251
  • Charts / Figures: 28
  • Companies covered: 20
  • Countries covered: 20

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