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Data Center Services Market size exceeded USD 15 billion in 2020 and is set to grow at 10.5% CAGR from 2021 to 2027. The high demand for maintaining optimum operations and maximum productivity during infrastructure upgrades and storage transformation is expected to fuel the industry growth.
A sharp rise in the number of new data center establishments globally will drive the demand for services that enable maximum throughput from facilities. For instance, in August 2020, Zoom Video Communications launched a data center in Singapore to cater to the growing demand for its video conferencing platform in the country. Similarly, in June 2020, Oracle Corporation launched its second data center in India to accelerate digital transformation and economic growth. Established market players expanding their data center footprint will focus on employing sophisticated services that ensure optimal performance.
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The growing adoption of digitalization across developed & developing economies has stressed the existing data center facilities, boosting the demand for services that ensure optimal functioning of infrastructures. Data center services enable the efficient establishment and functioning of the infrastructure from initial installation to post-deployment maintenance. These services help businesses in minimizing the risk of system downtime, managing scalability requirements, and regulation compliance in a cost-effective manner. These benefits enable businesses to focus on their core competencies that enhance financial & operational efficiency, customer satisfaction, and management of IT infrastructure.
Report Coverage | Details |
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Base Year: | 2020 |
Market Size in 2020: | USD 15 Billion (2020) |
Forecast Period: | 2021 to 2027 |
Forecast Period 2021 to 2027 CAGR: | 10.5% |
2027 Value Projection: | USD 25 Billion (2027) |
Historical Data for: | 2016 to 2020 |
No. of Pages: | 300 |
Tables, Charts & Figures: | 282 |
Segments covered: | Data Center Size, Type, Application and Region |
Growth Drivers: |
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Pitfalls & Challenges: |
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The ongoing coronavirus (COVID-19) pandemic has negatively impacted the economic growth and the data center services market in FY2020. New data center construction projects were halted during the lockdowns imposed by government authorities to maintain social distancing to stop the spread of the virus. These halts, in turn, have hampered the demand for data center services during the first half of the year. However, with relaxation in lockdowns and resumption of industrial activities, the market will witness significant growth. The growing adoption of technologies, such as video conferencing and video on-demand, will stress the need for efficient data center services that support increasing workloads and scalability.
The consulting services market in the U.S. is poised to achieve around 6% CAGR through 2027 owing to a rise in the acceptance of technologies, such as the Cloud, 5G, and AI, increasing the implementation of advanced micro & edge data centers.
Consulting services enable organizations to efficiently transit from traditional facilities to modern infrastructures. Micro & edge data centers have become more vital for organizations as they capitalize on market trends such as cloud computing and IoT. The increasing penetration of modern technologies will spur the demand for consulting services that offer precise guidance on the latest technologies based on specific business requirements.
In 2020, global data center services market for large facilities was worth around USD 5 billion and is likely to expand at 12% CAGR during 2021 to 2027. As large businesses increasing their IT requirements grow, demand for expansive data center establishments to keep up with competitive market demands will increase. This further drives the complexity associated with hardware, servers, and networking equipment. Operators require sophisticated data center services to manage the storage and networking equipment.
As data center downtime can result in huge financial losses, there is a growing demand for services that ensure timely maintenance of assets. Data center services enable large data center operators to minimize energy consumption and boost the management of extensive hardware infrastructure.
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The data center services market from colocation applications in Europe accounted for around 30% share in 2020 and is projected to register growth rate of above 14% till 2027. Data center colocation providers employ advanced technologies to ensure the optimum functioning of assets to ensure customer satisfaction. A rise in the number of SMEs in Europe has resulted in growing popularity of colocation services in the European market.
Colocation providers are increasingly supporting their presence in the region. For instance, in March 2020, Equinix, Inc. opened its third data center in Poland. The facility offers 475 cabinets and around 1,400 square meters of colocation space. Similarly, in July 2019, Digital Reality established data centers in Frankfurt, Germany. As colocation providers focus on enhancing their offerings to sustain the increasing market competition, there will be a high demand for data center services for optimal infrastructure management.
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The Asia Pacific data center services market share is forecast to grow at 13% CAGR over 2021 to 2027. The China data center market will grow at considerable rate due to the growing popularity and adoption of cloud computing technology. The incorporation of cloud technology has resulted in the rising demand for massive storage requirements, in turn, driving the demand for data center services.
In April 2020, Alibaba Cloud announced that the company will invest USD 28 billion over the next three years to build high-performance data centers in the market. In July 2020, the company announced its plans to launch its third data center in Indonesia in 2021 to support Alibaba Cloud services. The expanding cloud industry will spur the demand for data center consulting, training, and integration services.
Key players operating in the data center services market include IBM Corporation, Cisco Systems, Inc., Schneider Electric SE, Dell, Inc., Equinix Inc., Huawei Technologies Co., Ltd., Fujitsu Ltd., HCL Technologies Ltd., and Hewlett Packard Enterprise Company.
Companies are offering innovative solutions for different industry verticals. The increasing adoption of advanced technologies encourages data center service providers to launch innovative services catering to specific end-user requirements.
Market, By Services
Market, By Type
Market, By Application
The above information has been provided for the following regions and countries: