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Industry Statistics
Data Center Services Market size was worth more than USD 15 billion in 2022 and is projected to depict over 15% CAGR from 2023-2032. The steady rise in the number of data center construction activities worldwide will complement the industry outlook.
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Emergence of disruptive technologies and trends, such as robots, driverless cars, and AI/IoT-enabled devices has led to a massive rise in data traffic, fuelling the need for new data centers. Lately, the strong digitalization of work and lifestyles has transformed the global economy and society radically with the rapid penetration of smartphones, connected devices, surveillance systems, and high-resolution tools. As a result, the preference for stronger network bandwidth has emerged stronger with soaring demand for high computing power and larger storage capacity data centers.
| Report Coverage | Details |
|---|---|
| Base Year: | 2022 |
| Market Size in 2022: | USD 15 billion |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 15% |
| 2032 Value Projection: | USD 70 billion |
| Historical Data for: | 2018 to 2022 |
| No. of Pages: | 300 |
| Tables, Charts & Figures: | 282 |
| Segments covered: | Type, Data Center Size, Application and Region |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Surge in privacy breaches to hamper data center services industry
The increase in data security concerns, cyber-attacks, and privacy breaches could restrain the data center services market outlook in near future. The rising dependence on digital systems for work, education, entertainment, and even day-to-day transactions is fueling the susceptibility to cybersecurity breaches. The sophistication of cyberattacks has resulted in record-high public data breach incidents over the past few years.
Thriving demand for large data centers to match surging data traffic & private cloud adoption
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In terms of revenue, data center services market share from large data centers is anticipated to reach USD 30 billion by 2032. Large businesses are turning to private cloud, driving the industry growth. Cloud and large data centers as a service are gaining significant momentum owing to advanced capabilities such as massive volume of data handling capacity as compared to on-premise counterparts. The increasing data traffic and the growing need for the management of large data volumes are further encouraging the adoption of large data centers for their high processing speeds.
Rising need for training services to limit high complexity of modern data centers
| Segment | Market Share, 2022 (%) |
|---|---|
| Small data centers | 42.5% |
| Medium data centers | 19.5% |
| Large data centers | 38.1% |
| Total | 100% |
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Data center services market valuation from training services is estimated to reach USD 10 billion by the end of 2032. The surging demand for training services can be attributed to their ability to help organizations ensure efficiency in operating their data centers and preventing downtime. The ongoing advancements in cloud technology, the increasing complexity of data centers, and the emergence of disruptive trends, such as virtualization are compelling the need for effective training across IT infrastructures. The deployment of sophisticated technologies that necessitate adequate technical expertise in order to maximize operational efficiency and prevent errors will also drive market growth.
Adoption of portable IT infrastructure to fuel data center service applications in energy sector
Energy application segment in the data centers services market is estimated to register more than USD 8 billion by 2032. Data centers and data transmission networks are considered to be a major source of energy demand on account of the rapid digitization worldwide. Additionally, the energy sector is witnessing a surge in the development of energy-efficient and portable IT infrastructure facilities, subsequently adding to the demand for modular data centers.
The demand for data center services across the BFSI sector is expected to pick up pace through 2032 due to the growing dependence on cloud technologies. The rising penetration of smartphones, the increasing number of internet users, and the advent of digital payment solutions are also accelerating the focus on data centers for better management of stacks of data volumes.
Government-led green data center initiatives to complement industry expansion in Europe
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Europe data center services market size is projected to expand at over 10% CAGR between 2023-2032. Europe is experiencing an upsurge in the adoption of data center facilities in the manufacturing sector driven by the robust presence of major automobile giants in the region. The thriving automotive industry along with fast-paced technological advancements such as autonomous cars and driverless vehicles will offer lucrative business prospects for data center service providers.
The deployment of favorable government regulations and the rapid influx of foreign tech giants will pave the way for improved data center services industry growth in Europe. For instance, in December 2022, Microsoft announced plans to roll out a comprehensive data localization offering, EU Data Boundary for Microsoft 365, Power Platform, Dynamics 365 services, and Azure starting January 2023 in Europe. Furthermore, the emergence of green data center initiatives backed by government agencies will complement the industry outlook.
Expansion initiatives to foster competitive landscape of the data center services market trends
Some leading companies in the global data center services market include Cisco Systems, Inc., IBM Corporation, Schneider Electric SE, Dell, Inc., Huawei Technologies Co., Ltd., Equinix Inc., HCL Technologies Ltd., Fujitsu Ltd., and Hewlett Packard Enterprise Company. These industry participants are implementing strategic initiatives including, joint ventures and acquisitions to expand their business presence and customer reach.
Impact of the COVID-19 pandemic on the data center services industry
COVID-19 crisis had a positive impact on the data center services market. With worldwide social distancing norms and lockdowns, the majority of the global workforce as well as students adopted remote working/learning models. As a result, data centers emerged as promising tools for managing high internet traffic and maintaining data security. The pandemic-driven digitization and disruption accelerated the volumes of data generated. Moreover, the increasing use of cloud computing and the need for robust IT infrastructures fueled the demand for data center services. In the post-pandemic era, the influx of digital transformation, social media usage, cloud implementation, and Industry 4.0 technologies such as IoT, AI, and 5G will complement the data center services industry outlook.
The Data Center Services market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2018 to 2032 for the following segments:
by Type
- Installation & integration services
- Training services
- Consulting services
- Maintenance & support services
- Others
by Data Center Size
- Small data center
- Medium data center
- Large data center
by Application
- BFSI
- Colocation
- Energy
- Government
- Healthcare
- IT & telecom
- Manufacturing
- Others
The above information is provided on a regional and country basis for the following:
North America
- U.S.
- Canada
- Mexico
Europe
- UK
- Germany
- France
- Italy
- Poland
- Spain
- Benelux
Asia Pacific
- China
- India
- Japan
- Singapore
- Australia
South America
- Brazil
- Chile
- Peru
- Argentina
MEA
- GCC
- South Africa
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