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Revenue in the Data Center market is projected to reach US$8.64bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$5.93bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.51%, resulting in a market volume of US$11.85bn by 2029.
In global comparison, most revenue will be generated United States (US$123.20bn in 2024).

Definition:

The Data Center market is a critical segment of the technology industry focusing on supplying and managing physical infrastructure necessary for hosting and operating IT systems, primarily servers, storage, and network equipment. This market spans from traditional in-house data centers to sophisticated facilities offered by specialized providers, covering services like hosting, shared data center facilities, and managed data center solutions. It targets a diverse client base, ranging from small businesses to large enterprises, offering flexible, scalable solutions for their IT infrastructure needs. This sector is integral to the efficient functioning and security of IT operations in various organizations.

Structure:

The Data Center market is structured in three markets based on the services model provided by the companies.

The Server market covers the resources and services related to servers, integral for hosting websites, managing databases, and supporting cloud computing.
The Storage market covers the resources and services related to data storage systems, crucial for archiving, data backup, and ensuring data recovery.
The Network Infrastructure market covers the resources and services related to network hardware essential for ensuring connectivity, data transmission, and network security.

Additional Information:

The Data Center market includes revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Market values represent revenues paid to primary vendors at the manufacturer price level either directly or through distribution channels (excluding VAT). Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players in the Data Center market include companies such as Dell, HPE, Huawei, and Ericsson.

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Network Infrastructure, such as Cisco Routers and Switches, and Arista Network Ethernet Switches
Infrastructure Firewalls, such as Palo Alto Network Next-Generation Firewall, and Fortinet FortiGate Firewalls
Servers, such as Dell PowerEdge Servers, HPE ProLiant Servers, and IBM Power Systems
Storage, such as Dell EMC Storage Solutions, and NetApp Data Storage Systems

IT Infrastructure for Private Environments, such as VMware vSphere, and Cisco UCS
Software, such as Microsoft Windows Server, and Red Hat Enterprise Linux
Cloud Hosting Services, such as AWS, Microsoft Azure, and GCP
Network Infrastructure Services, such as IT Support Services, and Home Internet Services Providers (ISPs)

The Data Center market in India is seeing slow growth due to factors such as lack of infrastructure, high cost of equipment, and limited adoption of digital technologies. Additionally, the sub-markets of Servers, Storage, and Network Infrastructure are also affected by these challenges. The overall market is expected to see minimal growth due to these barriers, but efforts are being made to improve the situation and increase adoption of digital services.

Customer preferences: With the rise of e-commerce and online shopping in India, there has been a growing demand for reliable and efficient data centers to support the online transactions and operations. This shift towards online shopping has also led to a surge in demand for cloud-based solutions and services, as businesses and consumers seek convenience and accessibility. Additionally, the increasing adoption of IoT devices and smart home technology has also contributed to the growth of the data center market, as these devices require a robust infrastructure to function effectively.

Trends in the market: In India, the Data Center Market is experiencing a surge in demand for cloud-based services, with the adoption of hybrid and multi-cloud strategies by businesses. This trend is driven by the need for cost-effective solutions, scalability, and data security. Another trend is the increasing investments in data center infrastructure, as the country aims to become a global hub for digital services. These developments have significant implications for industry stakeholders, including data center providers, cloud service providers, and technology companies. It is expected that these trends will continue to shape the market in the coming years, with a focus on innovation and efficiency.

Local special circumstances: In India, the Data Center Market is experiencing rapid growth due to the country's large population and increasing demand for digital services. The government's initiatives to promote digitalization and the growing number of internet users have also contributed to this growth. Additionally, India's diverse climate and geographical conditions have led to the development of specialized data centers that cater to unique environmental needs. These local factors play a crucial role in shaping the market dynamics and attracting foreign investments in the Data Center Market.

Underlying macroeconomic factors: The Data Center Market in India is strongly impacted by macroeconomic factors such as government policies, technological advancements, and investment in digital infrastructure. With the Indian government actively promoting digitalization and the country's rapidly growing economy, the demand for data centers is expected to increase significantly. Additionally, with the increasing adoption of cloud computing and the rise of big data analytics, the demand for data centers is further fueled, making India an attractive market for data center providers. Moreover, India's young and tech-savvy population also plays a crucial role in driving the growth of the data center market in the country.

Data coverage:

The data encompasses B2B enterprises. Figures are based on hardware-related expenses of businesses for setting up and maintaining an IT infrastructure.

Modeling approach / Market size:

Market sizes are determined through a top-down approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports and national statistical offices. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of digitization. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques, such as exponential trend smoothing and the S-curve function, is based on the behavior of the relevant market.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Although data centers may not make front page news, they serve a critical role as the infrastructure powering the most exciting developments in tech. While data centers were once known as small rooms housed on-site by business users, they have increasingly become extensive, centralized facilities managed by multinational operators. Many organizations rent data center capacity from a so-called colocation provider such as Equinix or Digital Realty, while others subscribe to cloud subscription services to take care of their storage and compute requirements. The global market was forecast to bring in 344 billion U.S. dollars in 2024, propelled by the adoption data intensive technologies.