Data Center Services Market size worth over $25 Bn by 2027
Published Date: January 19, 2021 Authors: Preeti Wadhwani, Saloni Gankar
Data Center Services Market size is set to surpass USD 25 billion by 2027, according to a new research report by Global Market Insights, Inc.
The escalating adoption of web-based services and requirement for effective data storage capacities will support the data center services industry growth. Regulatory bodies, such as The American Society of Heating and Refrigeration and Air-Conditioning Engineers (ASHRAE), have updated standards for the temperature and humidity conditions for computing equipment. The growing demand for reducing energy consumption and ensuring optimum performance will encourage businesses to adopt data center services such as consultation, installation, and integration services. This will help facility managers, IT professionals, and sustainability coordinators in identifying energy efficiency strategies in existing data centers and server rooms.
The coronavirus (COVID-19) pandemic had a negative impact on the data center services market in the first half of 2020 due to stringent lockdown measures imposed by government organizations globally. Unstable economic conditions affected the data center market growth, in turn, negatively impacting the market outlook. However, with industrial activities resuming normal operations in the second half of 2020, the market gradually gained traction. The leading market players, such as AWS, Google, Oracle, and Microsoft, have continued their investment in equipping new hyperscale data centers due to a spike in remote working culture during the pandemic.
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Growing demand for data center services that enable easy setup of new equipment and efficient upgrade of existing infrastructure
The data center services market revenue from installation & integration segment is expected to cross around USD 5 billion by 2027. Data center equipment installation is a complex process that requires unique skills and efficient services to ensure maximum productivity. Market players offer installation services for server cabinet, aisle containment, control room console furniture, and cabling to prevent several problems in an IT infrastructure.
Structured cabling installation services ensure seamless cable management and expert installation of cabling infrastructure including detailed inventory and proper labeling. Professional installing services provide a high degree of flexibility and reliability tailored to unique customer requirements. There is a high demand for these services that include hardware testing, custom assembly & upgrades, rack and stack, operating system, and pre-configuration.
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, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 - 2027” in detail along with the table of contents:
The developing IT & telecom sector globally will propel the demand for data centers for managing the increasing data traffic
The IT & telecom sector globally is witnessing a revolution with the advent of technologies, such as 5G and NFC, in the market. The increasing adoption of 5G technology in North America and Europe will result in increasing number of subscribers using the technology for fast data streaming online. Large generation of digital data will surge the demand for high-performance data management and storage solutions. The IT & telecom market includes infrastructures, such as fiber, telecommunication towers, data centers, and active networks, that require uninterrupted services to effectively serve customers in the industry. This will fuel the demand for efficient data center services to support increasing scalability and workload requirements in large computing facilities.
The robust manufacturing sector in Europe adopting advanced digital technologies will upsurge the demand for data traffic management
The strong automotive manufacturing sector employing advanced technologies, such as IoT, AI, and machine learning, contributing to the exponential rise in the amounts of data collected will boost the data center market demand. The presence of large automotive manufacturers, such as BMW and Mercedes-Benz, that employ advanced digital technologies at their manufacturing facilities is propelling the demand for advanced data center infrastructures that efficiently store large amounts of data. Data center downtime can impact daily operations and lead to huge losses for businesses. This leads to increasing demand for high-quality data center services that ensure optimum functioning of data centers by mitigating the risks of component overheating and data center downtime.
Market players are focusing on enhancing offerings to capture a larger market share
Key players operating in the data center services market include Huawei Technologies Co. Ltd., IBM Corporation, Telefonica SA, Cisco Systems Inc., Fujitsu Ltd., Corporation, HCL Technologies Ltd., and Hewlett Packard Enterprise Company.
Companies are focusing on launching new enhanced services to strengthen their market position. For instance, in July 2020, IBM Corporation collaborated with CBRE, a commercial real-estate services company, to deliver smart maintenance services to data center customers. Powered by IBM Services, the solution leverages IBM Corporation’s augmented reality, deep analytics, and AI technologies to provide vendor-agnostic and predictive hardware maintenance for CBRE's data center customers’ technology assets.