Home > Pressrelease > Data Center Services Market size to surpass $70Bn by 2032
Data Center Services Market size to surpass $70Bn by 2032
- Published Date: January 25, 2023
Data Center Services Market size is estimated to reach over USD 70 billion by 2032, according to a recent research report announced by Global Market Insights Inc.
The dramatic rise in the use of OTT services, particularly across MEA and South America will foster demand for data centers and associated services. The developing economies of the world are experiencing a dynamic technological evolution with burgeoning volumes of online content consumption, accelerating the need for robust data center management solutions. In recent times, the number of people preferring streaming platforms for entertainment has significantly escalated. Furthermore, the emergence of the COVID-19 pandemic spurred the viewer interest in easily accessible online content during lockdown situations. OTT providers also rely heavily on data center facilities for storing, delivering, encoding and decoding video content sourced from broadcast, cable, or telecom networks.
Rising need for installation & integration services for data traffic management to drive industry demand
Installation & integration services held more than 35% share of the data center services market in 2022. An exponential rise in data traffic as a result of the rapid proliferation of IoT-enabled connected devices is propelling the demand for advanced data center installation and integration services. The data center integration service (DCIS) helps enterprises in designing, creating, deploying, delivering, and securing applications across diverse distributed enterprise architectures. These are compatible with different on-premises as well as hosted commercial models. The rising number of data centers will also fuel the demand for installation and integration services, complimenting the industry expansion.
Development of new medium-sized modular data centers to augment industry growth
Data center services market size from medium data centers is poised to exhibit over 10% CAGR between 2023-2032. Medium data centers have a high preference for their favorable scalability and easy deployment as compared to conventional facilities. These centers also feature portability, allowing end-users to establish or even relocate data centers to new sites. For instance, in January 2022, Huawei and China Mobile entered an agreement to build a modular data center to cater to the rapid influx of mobile data driven by tourists.
Browse key industry insights spread across 300 pages with 256 market data tables and 26 figures & charts from the report “Data Center Services Market Size By Type (Installation & Integration, Training, Consulting, Maintenance & Support), By Data Center Size (Small Data Center, Medium Data Center, Large Data Center), By Application (BFSI, Colocation, Energy, Government, Healthcare, IT & Telecom, Manufacturing) Industry Analysis Report, Application Potential, Competitive Market Share & Forecast, 2023 – 2032”, in detail along with the table of contents:
Digitization of the healthcare sector to foster demand for data center services
In terms of revenue, the data center services industry share from healthcare applications is expected to reach over USD 10 billion by the end of 2032. Rapid digitization of the healthcare sector has increased the dependency on next-generation technologies. Hospitals and healthcare facilities worldwide rely on data centers for collecting and analyzing data. It also allows them to store massive volumes of patient data such as billing records, administrative enrolment, medical records, clinical trials, and health surveys safely. Moreover, the rising trend of remote healthcare and the adoption of digital platforms supporting telehealth services are further contributing to data traffic.
Infrastructure initiatives to boost APAC data center services market trends
Asia Pacific recorded more than 25% of the data center services market share in 2022. Robust population growth in countries such as China and India is resulting in exponentially high internet consumption, representing lucrative business prospects for data center service providers. The growing acceptance of modern technologies has fueled the need for better processing speeds and larger bandwidths. Additionally, the region is witnessing a series of government-backed initiatives focusing on the development of advanced IT infrastructures.
Strategic initiatives to boost data center services industry development
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 are some of the leading companies operating in the global data center services industry. These players are focusing on acquisitions, mergers, collaborations, and deals to expand their customer networks.
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