- The rise is predicted to take place from USD 220.0 Billion in 2021 to USD 343.6 by 2023, and the reason is an increase in the volume of data, mobile, analytics, and cloud services.
- In the future, Telecom and the IT sector will dominate the global data center market.
The data center market size is expected to grow at a CAGR of 5.1% to USD 343.6 billion by 2030 from an estimated USD 220.0 billion in 2021, according to a market research report published by P and amp;S Intelligence. The market’s growth is based on an exponential increase in the volume of data on account of increased usage of mobile, analytics, social, and cloud services.
Key leaders offering software, hardware, and construction services for the establishment of facilities are NTT Communications Corporation, Oracle Corporation, Hewlett Packard Enterprise, Equinix Inc, Alphabet Inc, and IBM Corporation.
Major Findings of Data Center Market Report
- The U.K. government introduced proposals in July 2021 to encourage its technology industry and protect customers by boosting competition in the digital sector. Therefore, the government’s role is one of the main drivers of the market advance as it will lead to data storage and management offerings
- In the same way, last year, the government of Malaysia announced plans to spend over RM 56 billion on infrastructure for wide and faster internet connectivity. The objective is the development of the country’s digital economy
- IT infrastructure is dominating the market because it includes network, storage, and server components that are important for such spaces’ functioning. This infrastructure bifurcation will advance in the near future with about a 5% CAGR
- In 2020, data creation reached 64.2 zettabytes, which was 314% more than in 2015. Experts expect that in 2025, data creation will happen at 10 times greater speed when compared in 2017. Additionally, approximately 2.5 quintillion bytes of data are generated every day, requiring ample storage space
- In April 2022, the Seagate Technology Holdings plc and PHISON Electronic Corp declared plans to expand the solid-state drive (SDD) portfolio, to aid data centers in lowering the cost of ownership (TCO).
- In 2021, the data center market of North America was the largest, holding 40% of the global share. There are over 2,600 data centers in the U.S., many of them are situated in Northern California, where firms such as Yelp, Google, Twitter, and Facebook have headquarters.
It is predicted that the IT and Telecom Sector will dominate the global data center market in the coming years. Faster adoption of newer technologies such as cloud computing, the Internet of Things (IoT), and Artificial Intelligence (AI) leads to a high volume of data creation. Because everyone doesn’t have ample space to store the data, they use cloud storage given by data management facilities.
Furthermore, the pandemic has led to a strong rise in investments and initiatives in the data center market across the globe. During the COVID-19 pandemic, the number of such facilities and things grew exponentially.