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Data Center Transformation Market Size, COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023 – 2032

  • Report ID: GMI4937

Data Center Transformation Market size is anticipated to witness healthy growth during 2023 to 2032, given the rapid emergence of the cloud-based IT infrastructure trend.

Several businesses are deploying cloud-based systems to improve their operational scalability and flexibility. Approximately 94% of organizations adopted cloud solutions in 2022 since almost 61% of companies transferred their workloads to cloud networks in 2020 following the onset of the COVID-19 pandemic.

The growing penetration of digitalization has also urged IT firms to turn their existing IT setup into efficient cloud-based structures. This has boosted the demand for data center transformation services, as they enable the seamless transition from traditional systems to cloud-based architectures.

Based on service, the infrastructure management services segment is expected to hold a sizeable share of the data center transformation market by 2032. IT enterprises are looking for different ways to efficiently manage all the components of a facility. Asset maintenance, security arrangements, network quality, and management of various power & cooling equipment are crucial for the effective functioning of data centers.

Intuitive software solutions are also being introduced by cloud service providers to assist users in managing and supervising different phases of their data center facilities. For example, in November 2022, IBM Corporation announced the launch of its Business Analytics Enterprise, a new software to help organizations break down data and analytics silos and make quicker data-driven decisions. The software was also designed to assist them in navigating through unexpected disturbances.

In terms of tier, global data center transformation market size from the tier 4 data center segment is projected to record a considerable CAGR through 2032, attributed to high complexity associated with these systems. The network of these data centers is expanding at a strong rate across the world. For instance, in November 2022, HostDime, a specialist in edge data center infrastructure development, released design plans for its upcoming Tier IV data center facility to be built in Guadalajara, Mexico.

Tier 4 data centers comprise several complex components, boosting the need for solutions that enable organizations to optimize their operations. These data centers also have multiple active power & cooling paths, making their infrastructure quite complicated. Operators are often confronted with the challenge of upgrading and enhancing the performance of these data centers, thereby driving the adoption of data center transformation services.

The IT & telecom end-use sector may account for a large share of the data center transformation market by 2032. This sector is witnessing appreciable growth globally, which might augment the need for the establishment of robust IT infrastructures that can handle massive volumes of data. The increasing penetration of internet-enabled devices has caused a sharp rise in the quantity of data collected every day.

The introduction of 5G technology has increased data streaming & downloading speeds, which will encourage more people to avail of digital services. This has motivated IT & telecom service providers to adopt advanced technologies to facilitate efficient data storage and transfer, propelling the usage of data center transformation solutions.

Europe data center transformation market value will see massive growth till 2032, on account of region’s expanding manufacturing sector. According to the European Commission, the region’s R&D investments saw an 8.9% increase in 2021 from the -2.2% drop witnessed in 2020. Most of these investments are focused on Europe’s automotive sector.

Manufacturers are thus leveraging advanced technologies, such as AI, machine learning, and IoT to streamline their daily operations and improve their data traffic management techniques, spurring the need for high-quality IT infrastructures. Automakers in major European countries, including Germany and France, are using cutting-edge technologies in their production processes to maximize productivity. This will amplify the need to upgrade the existing data centers, which in turn, is likely to assert a positive influence on the market forecast.

Some of the leading companies operating in the data center transformation market include Microsoft Corporation, Cisco Systems Inc., IBM Corporation, Rahi Systems (Wesco International), Accenture PLC, Dell Inc., Schneider Electric SE, HCL Technologies, Hitachi Ltd., and ABB Ltd, among others. These firms are focusing on launching innovative solutions to extend their product portfolio and strengthen their market position.

For example, in October 2022, Kyndryl, the largest IT infrastructure services provider in the world, partnered with Dell Technologies and Microsoft Corporation to unveil an integrated hybrid cloud solution. The solution is designed to assist clients in data center, remote and mainframe environments in speeding up their cloud transformation projects by utilizing Dell’s infrastructure, Kyndryl’s managed services, and Microsoft Azure.

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

Market, By Service Type

  • Consolidation Services
  • Optimization Services
  • Automation Services
  • Infrastructure Management Services

Market, By Tier Type

  • Tier 1
  • Tier 2
  • Tier 3
  • Tier 4

Market, By End-Use

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

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Taiwan
    • Australia
  • Latin America
    • Brazil
    • Mexico
  • MEA
    • GCC
    • South Africa


What Information does this report contain?

Historical data coverage: 2018 to 2022; Growth Projections: 2023 to 2032.
Expert analysis: industry, governing, innovation and technological trends; factors impacting development; drawbacks, SWOT.
6-7 year performance forecasts: major segments covering applications, top products and geographies.
Competitive landscape reporting: market leaders and important players, competencies and capacities of these companies in terms of production as well as sustainability and prospects.
Authors: Preeti Wadhwani

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