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Data Center Renovation Market worth over $70 bn by 2028
- Published Date: April 6, 2022
Data Center Renovation Market size is set to surpass USD 70 billion by 2028, according to a new research report by Global Market Insights Inc.
The growing focus on replacing the older model of the solutions such as power & cooling systems and networking equipment will boost the market growth. The lifespan of rack PDU, rackmount UPS, and remote power panels is between 8 and 12 years, around 4 and 8 years, and nearly 8 and 12 years, respectively. The continued use of outdated solutions can increase power consumption, chances of overheating & fire, and overall operating costs. It can also negatively affect system efficiency and increase cyberthreat possibilities. This factor has propelled the replacement of existing hardware & installation with new edition of the product range.
The COVID-19 pandemic moderately impacted the data center renovation market in 2020. However, in 2021 the industry witnessed the steady growth owing to the vast internet customer base, which is stimulating the demand for advanced data storage facilities. Several technological advancements provided by the manufacturers, such as sophisticated connectivity, airflow management, enhanced cooling system, and high security, have revolutionized the industry and spurred the demand from customers. At present, the market players are focused on expanding their portfolio to gain a competitive position in the developing market.
Greater resiliency & collaboration offered by DCIM to edge data centers will fuel the market progression
Edge data centers are located at remote locations; they lack the necessary IT staff for proper facility management, thereby accelerating the DCIM demand. Next-generation DCIM solutions utilize data analytics, Artificial Intelligence (AI), and cloud technologies to provide better visibility for site administration. It allows timely maintenance upgrades for facility managers and ensures optimum performance levels of service schedules. The software helps in bug fixes, security patches, and the proactive updating of automated device firmware. Improved collaborations among multiple stakeholders and the remote monitoring of entire sites will spur the adoption of DCIM, thereby, surging the market expansion.
Browse key industry insights spread across 300 pages with 203 market data tables and 26 figures & charts from the report, “Data Center Renovation Market Size, By Component (Solution [Cooling, Power, IT Racks & Enclosures, Networking Equipment, DCIM], Service [Professional, Managed]), By Application (BFSI, Colocation, Energy, Government, Healthcare, Manufacturing, IT & Telecom), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 – 2028” in detail along with the table of contents:
IT & telecom sector expansion for increasing customer reach will foster the demand for data center renovation products & solutions
The growing penetration of smartphones and the rising popularity of digital services have encouraged the companies to increase their market presence in different locations. For instance, in September 2021, Bharti Airtel appointed Tejas Network for expanding its optical network capacity in major metros. The system integrator will install TJ1600 DWDM/OTN products to extend the company’s optical infrastructure, enhance broadband applications & B2B service quality, and support 5G backhaul. The enhanced capacity of telecom service providers will proliferate the data center renovation sector growth as companies will need to improve their existing facilities to manage on-going changes.
Easy accessibility to data center renovation services will offer strong growth opportunities in the Europe region
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Europe data center renovation market is poised to register a 20% growth rate by 2028 due to the rising competition in the region. The industry leaders are focusing on entering new locations to gain larger market shares in the region. For instance, in June 2021, APL Data Centers opened an office in Marseille. Similarly, in September 2020, APL Data Centers unveiled a new branch in Switzerland, with a capital investment of around USD 107,526.8. The company delivers data center designs, construction & upgrade, consulting, project management assistance, and auditing services to clients. The increasing number of companies will drive technological development and improve the affordability of solutions.
Focus on product innovations & strategic acquisitions forms a crucial strategy among market players
Key participants operating in the data center renovation market are Vertiv Co., Eaton Corporation, Schneider Electric, Cisco Systems, Inc, APL Data Center, Black & Veatch Holding Company, Panduit Corporation, Dorsalys (Eiffage Énergie Systèmes'), and IBM Corporation. These leaders are emphasizing on increasing their expertise in the sector and escalating R&D activities to develop cutting-edge solutions.