Data Center Infrastructure Market worth over $100bn by 2027
Published Date: February 26, 2021 Authors: Preeti Wadhwani, Saloni Gankar
Data Center Infrastructure Market size is set to exceed USD 100 billion by 2027, according to a new research report by Global Market Insights, Inc.
The rise in demand for High-Performance Computing (HPC) to meet the needs of scalable workloads will drive the market growth. With the growing number of AI and HPC applications, the deployment of accelerated compute servers integrated with specialized processors, such as FPGAs, ASICs, and GPUs, is increasing in data centers. These specialized processors are capable of handling AI training and inference workloads more efficiently compared to traditional processors such as CPUs. Manufacturers are developing next generation accelerated platform to secure data center infrastructure and support modern workloads.
Increasing consumer and organizational data generation are boosting the demand for data centers globally. According to Cisco Systems, Inc., it is estimated that IP traffic in data centers will reach 20.6 ZB by the end of 2021, representing an increase of around 7 ZB since 2016. This is encouraging leading cloud service providers, such as Microsoft, Amazon, and Google, to continue investment in hyperscale data center infrastructures. These companies are adopting greener power technologies by incorporating efficient and smarter systems.
The ongoing coronavirus (COVID-19) pandemic is projected to increase the demand for data center infrastructure market globally. The government-imposed nation-wide lockdowns caused an increase in the usage of internet-related services. In October 2020, Internet Measurement Conference (IMC) found that COVID-19 pandemic increased the internet traffic between 25% and 30% during March 2020 - April 2020, that is ten times higher than the normal growth. Cloud-based services have witnessed spike as enterprises required to store, transfer, and secure confidential data and information. To accommodate this high data traffic, the companies in the market are increasing their investments in scalable data center infrastructure solutions.
Demand for efficient cooling systems to reduce power consumption will fuel the market expansion
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The cooling solutions in the data center infrastructure market is expected to witness exponential growth during the forecast time period. The data center operators are increasingly accepting energy-efficient cooling infrastructure solutions to reduce power consumption and carbon emissions. The implementation of liquid cooling techniques has increased considerably for cooling high-density cabinets in data centers. The technology has proven to reduce power consumption computing performance and improve Power Usage Effectiveness (PUE) in data center facility. Data center owners are relying on liquid immersion cooling techniques that directly submerge the heat generating components in a non-conductive liquid, resulting in better efficiency and performance.
Browse key industry insights spread across 300 pages with 251 market data tables and 28 figures & charts from the report, “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” in detail along with the table of contents:
Enterprises are modernizing their network systems by implementing dynamic software tools to improve network performance and monitoring
The software segment is predicted to experience a rise in data center infrastructure market value during the forecast timeline. The advent of cloud computing technologies along with explosion in server visualization is encouraging enterprises to modernize their conventional network architectures. Data center operators are implementing software tools, such as Software Defined Networking (SDN) and Network Function Virtualization (NFV), to develop a dynamic and flexible network architecture that can respond to constantly changing market requirements. SDN adoption in data centers is gaining strong traction owing to its benefits of scalability, ease of deployment, flexibility, security, and management.
Increasing need to store and process 5G data in the IT & telecom sector will foster the need for data center infrastructure solutions
The development of 5G network across several countries is anticipated to provide a substantial growth opportunity to the data center infrastructure market in the IT & telecom sector. In April 2019, South Korea became the first country to launch 5G network services. According to the country’s Ministry of Science and ICT, 5G subscribers in South Korea reached 5.77 million since the launch. Similarly, in October 2019, China launched 5G services in the country at a low price of USD 18 per month. The massive amount of data generated by 5G technology is encouraging telecommunication service providers to invest in data center facilities. To augment mobile services, content delivery, and cloud services, the demand for scalable and sustainable data center infrastructure solutions is poised to grow over the coming years.
Growing demand for energy-efficient solutions will spur the North America market revenue
The North America data center infrastructure market will showcase growth of over 9% till 2027 on account of exponential increase in the number of data centers across the region. Canada has become an ideal location for colocation and disaster recovery data centers, due to its benefits of cold weather and affordable power.
Colocation service providers are focusing on implementing energy-efficient systems to minimize the power consumption levels and enhance data center infrastructure performance. The established market players in the U.S., such as Hewlett Packard Enterprise (HPE), IBM Corporation, and Facebook Inc., are constantly advancing their data centers with energy-efficient servers, racks, and other IT equipment, providing significant opportunities for the market.
Partnerships and product launches remain key growth strategies among market leaders in the industry
Key companies operating in the data center infrastructure market are Panduit Corporation, Hewlett Packard Enterprise Company, Black Box Corporation, Vertiv Group Co., ClimateWorx International, Eaton Corporation, Huawei Technologies Co., Ltd., Cisco Systems, Inc., ABB Ltd, Schneider Electric SE, Degree Controls, Inc., and Dell, Inc. The market participants are engaged in developing long-term partnerships for providing data center infrastructure in various countries globally.