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Data Center Renovation Market Size

Report ID: GMI5239
Published Date: Sep 2023
Report Format: PDF

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Data Center Renovation Market Size

Data Center Renovation Market was valued at USD 20 billion in 2022 and is estimated to register a CAGR of over 14% between 2023 and 2032. The increasing reliance on online services worldwide, driven by factors such as remote work, e-commerce, and cloud computing, is fueling the demand for data center renovation.

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As businesses expand their digital presence, they require upgraded & more efficient data centers to handle the growing data loads and ensure uninterrupted service delivery. This surge in demand for data center upgrades and expansion is propelling the market with companies investing heavily to meet the escalating data processing needs.

The exponential growth in data, driven by factors such as IoT and digital transformation, is a significant growth factor driving the market trends. Existing data centers may struggle to efficiently handle the expanding data volumes. In such cases, renovation helps optimize infrastructure, cooling systems, and power management to accommodate the surge in data while ensuring reliability & performance. These factors make renovation crucial for businesses striving to meet the demands of the digital age.

Data Center Renovation Market Report Attributes
Report Attribute	Details
Base Year:	2022
Data Center Renovation Market Size in 2022:	USD 20.0 Billion
Forecast Period:	2023 to 2032
Forecast Period 2023 to 2032 CAGR:	14%
2032 Value Projection:	USD 74.6 Billion
Historical Data for:	2018 - 2022
No. of Pages:	230
Tables, Charts & Figures:	242
Segments covered:	Product, Application
Growth Drivers:	Increasing use of online services across the globe Growing demand for data center modernization in Asia Pacific and Europe Government initiatives to reduce the energy consumption of data centers in North America Public sector growth in South America Expansion of the IT & telecom sector in the MEA region
Pitfalls & Challenges:	Disruptions in the daily operational activities of facilities Rising cost of raw materials and skilled labor

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Renovation activities can hamper the day-to-day activities of data centers, which can negatively impact the service offering capabilities of operators. The process can comprise multiple internal changes including the replacement of servers, networking equipment, LV/MV distribution, and UPS. Data center renovation projects can also encompass the reconstruction of the complete cooling & ventilation system. These factors can impact data center administration abilities to consistently provide clients with back-end IT services along with affecting business growth. To address this challenge, market players are focusing on systematically delivering services that do not require a temporary shutdown of the facility.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

Data center renovation industry was valued at USD 20 billion in 2022 and is expected to register over 14% CAGR from 2023 to 2032, fueled by the increase in reliance on online services for remote work, e-commerce, and cloud computing.

Network equipment product segment will account for over 37% share of the market by 2032, owing to rising demand for advanced networking solutions for data traffic management.

North America held more than 37% share of the global market in 2022, driven by the increasing use of AI, which is boosting computational demands amid the rising data traffic.

Key players operating in the data center renovation industry include Vertiv Group Corp., Schneider Electric SE, Dell Inc., Hewlett Packard Enterprise Company, Eaton Corporation, Huawei Technologies Co., Ltd., ABB Ltd., and Rittal GmbH & Co. KG, among others.