Data Center Infrastructure Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Solution (Hardware, Software, Services), By End Users (Cloud Provider, Enterprise, Colocation Provider), And By Geography - Forecasts From 2022 To 2027

Published:  Oct 2022 Report Code: KSI061610009 Pages: 114

Global Data Center Infrastructure Market is expected to grow at a CAGR of 9.33%, reaching a market size of US$314.384 billion in 2027 from US$168.393 billion in 2020.

Datacenter infrastructure includes IT infrastructure devices, equipment, and technologies that strongly comprise a data center. Datacenter infrastructure is even required by IT and big multinational companies for storing data and running networks across their businesses. The data center infrastructure market is growing due to increasing colocation and data center in the world. The increasing demand for cloud networking is majorly driving the market for data center infrastructure. The increasing need for data centers to store this ever-growing volume of data is fueling the demand for data center infrastructure.

The data center infrastructure market is also growing due to an increase in demand for servers, computers, networking equipment like routers or switches, security components like firewalls or biometric security sensors, storage capacity, and data center management software and applications. The market is also witnessing noteworthy growth owing to the aging IT infrastructure, which is insufficient to store the current data volume. As such, companies are moving towards more intelligent physical infrastructure data center systems.

The global data center infrastructure market is segmented by solution, end-user, and geography. By solution, the global data center infrastructure market is segmented into hardware, software, and services. The market is further segmented by end-user as cloud providers, enterprise, and colocation providers.

Hardware to hold a major share

The hardware segment holds a major share in the data center infrastructure market. The growing number of data center around the world is augmenting the demand for hardware solutions to manage the data centers. The increasing number of cloud service providers is demanding more storage facilities with a growing volume of big data generated every year. This, in turn, is spurring the demand for servers, cables, networking equipment, storage space, and physical server racks & chassis, thus driving the market for the data center infrastructure.

The software and service segment are also projected to experience a rise in their market share in the data center infrastructure market. The growing use of data centers is increasing the requirement of data center infrastructure software for managing data centers and colocation centers. Increasing investments to create a skilled workforce is likely to support the growth of service solutions. For example, companies like Cisco are providing certified courses for special training in data center networking and technology for improvising employees for better fit according to advancing technology.

Cloud Service providers have a significant share

Cloud service providers accounted for a significant market share in 2019. The growth of this end-user segment is attributed to the increasing number of cloud service providers across the world for storing data and providing smooth access to their customers by using efficient networking devices. This, in turn, is bolstering the market growth of data center infrastructure. The colocation center as an end-user segment also holds considerable market share with increasing investments in colocation centers due to the requirement for large data storage spaces for big IT and multinational companies that need additional space for storing data and for networking purposes.

A lot of cloud service providers and colocation centers are collaborating to provide data center infrastructure in various countries across the world for better connectivity and networking. For example, Interxion, a leading provider of carrier and cloud-neutral colocation data center services in Europe, announced that dedicated access to Google Cloud Platform will be available across Europe through its Cloud Connect. Also, the company announced the construction of a new data center in Frankfurt in response to continued customer demand.

In January 2019, Equinix extended interconnection and data center services to Hamburg. Equinix will purchase the building for expanding Platform Equinix into the fourth German metro to support the Digital Edge strategy. In June 2019, E-Shelter opened its fourth data center campus in Frankfurt. The new site will offer carrier-neutral colocation services connected to e-shelter’s e-connect platform and provide access to multiple carriers and major cloud providers. The enterprise segment is expected to see a rise in the usage of the data center infrastructure market due to the increasing need for on-premise computing systems for storing data and for networking purposes.

By geography, North America is one of the major regional markets

Regionally, the global data center infrastructure market is classified into North America, South America, Europe, the Middle East, and Africa, and Asia Pacific. North America accounted for a significant market share in 2019 owing to the rising investments in data centers by both colocation and cloud service providers, supported by the presence of major market players in the region. Growing big data volume owing to technological advancements in artificial intelligence, and augmented reality for improving technology and providing better services to customers in the region is further contributing to the market growth as this requires the construction of more efficient data center infrastructure. The Asia Pacific region will witness the fastest regional market growth owing to the rising construction of data centers and emerging demand for cloud computing solutions across the region. The European and Middle East and Africa (MEA) markets for data center infrastructure will expand owing to the increase in adoption of cloud computing and the presence of some of the major players, catering to the demand with a wide range of solutions across different industry verticals.

Key Developments

  • March 2022: To accommodate the rising demand for cloud computing services, Amazon Web Services announced it would spend over £1.8 billion ($2.36 billion) developing and running data centers in the UK over the next two years. According to AWS, it has committed to spending hundreds of millions of pounds to teach 29 million workers in cloud computing by 2025. According to the company, cloud computing can help advance the government's leveling-up strategy, which aims to distribute investment across the nation.
  • June 2022: The third International Business Exchange (IBX) data center, to be known as MB3, will be built in Mumbai by Equinix, Inc., a US-based provider of digital infrastructure. By increasing its infrastructure and interconnection-rich data center platform in India, Equinix will be able to handle the enormous demand from both local and international clients. This growth would help Indian organizations improve their digital transformation plans and allow multinational corporations from many industries to increase their operations in India.

Product Offerings:

  • Cisco Prime Infrastructure: A network management solution called Cisco Prime Infrastructure enables lifetime management of complete network infrastructure via a single graphical interface. Network administrators may provision, monitor, optimize, and troubleshoot both wireless and wired devices with Cisco Prime Infrastructure's centralized solution. Device installations and operations are simple and economical due to robust graphical interfaces. From the wireless user in the branch office over the WAN, Cisco PrimeTM Infrastructure offers a management system, assurance monitoring, and troubleshooting capabilities network-wide.
  • Microsoft Azure Data Lake Storage (ADLS): Microsoft Azure Data Lake Storage (ADLS) is a managed service, adaptable, and secure file system that adheres to HDFS semantics and functions in the Apache Hadoop ecosystem. It offers enterprise-grade security, industry-standard dependability, and unlimited capacity to store an enormous quantity of data. Big data's variety is its primary feature. Azure Data Lake offers storage for an infinite amount of data. Data can come from a variety of sources, including databases, applications, the web, etc., and can be of any size. Clients can also store both relational and non-relational data with it.

Data Center Infrastructure Market Scope:

 

Report Metric Details
 Market Size Value in 2020  US$168.393 billion
 Market Size Value in 2027  US$314.384 billion
 Growth Rate  CAGR of 9.33% from 2020 to 2027
 Base Year  2020
 Forecast Period  2022–2027
 Forecast Unit (Value)  USD Billion
 Segments Covered  Solution, End-User, And Geography
 Regions Covered  North America, South America, Europe, Middle East and Africa, Asia Pacific
 Companies Covered Hewlett Packard Enterprise Development LP, Cisco Systems, Inc., Microsoft, Eaton, Intel Corporation, Siemens, Hitachi, Ltd., FriedHelm Loh Group (Rittal – The System)
 Customization Scope  Free report customization with purchase

 

Segmentation

  • By Solution
    • Hardware
    • Software
    • Services
  • By End-User
    • Cloud Provider
    • Enterprise
    • Colocation Provider
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • Germany
      • France
      • United Kingdom
      • Spain
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • Israel
      • UAE
      • Others
    • Asia Pacific
      • China
      • Japan
      • South Korea
      • India
      • Taiwan
      • Thailand
      • Indonesia
      • Others

Frequently Asked Questions (FAQs)

Q1. What are the growth prospects for the data center infrastructure market?
A1. The data center infrastructure market is projected to grow at a CAGR of 9.33% during the forecast period.


Q2. What is the size of the global data center infrastructure market?
A2. Data Center Infrastructure Market was valued at US$168.393 billion in 2020.


Q3. What will be the data center infrastructure market size by 2027?
A3. The global data center infrastructure market reach a market size of US$314.384 billion by 2027.


Q4. Which region holds the largest share of the data center infrastructure market?
A4. North America accounted for a significant share of the data center infrastructure market owing to the rising investments in data centers by both colocation and cloud service providers, supported by the presence of major market players in the region.


Q5. What factors are anticipated to drive the data center infrastructure market growth?
A5. The increasing demand for cloud networking is majorly driving the data center infrastructure market growth.


1. Introduction

1.1. Market Overview

1.2. COVID-19 Scenario

1.3. Market Definition

1.4. Market Segmentation

 

2. Research Methodology

2.1. Research Data

2.2. Assumptions

 

3. Executive Summary

3.1. Research Highlights

 

4. Market Dynamics

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

 

5. Global Data Center Infrastructure Market Analysis, By Solution

5.1. Introduction

5.2. Hardware

5.3. Software

5.4. Services

 

6. Global Data Center Infrastructure Market Analysis, By End User

6.1. Introduction

6.2. Cloud Provider

6.3. Enterprise

6.4. Colocation Provider

 

7. Global Data Center Infrastructure Market Analysis, By Geography

7.1. Introduction

7.2. North America

7.2.1. North America Data Center Infrastructure Market, By Solution, 2020 to 2025

7.2.2. North America Data Center Infrastructure Market, By End-User, 2020 to 2025

7.2.3. By Country

7.2.3.1. USA

7.2.3.2. Canada

7.2.3.3. Mexico

7.3. South America

7.3.1. South America Data Center Infrastructure Market, By Solution, 2020 to 2025

7.3.2. South America Data Center Infrastructure Market, By End-User, 2020 to 2025

7.3.3. By Country

7.3.3.1. Brazil

7.3.3.2. Argentina

7.3.3.3. Others

7.4. Europe

7.4.1. Europe Data Center Infrastructure Market, By Solution, 2020 to 2025

7.4.2. Europe Data Center Infrastructure Market, By End-User, 2020 to 2025

7.4.3. By Country

7.4.3.1. Germany

7.4.3.2. France

7.4.3.3. United Kingdom

7.4.3.4. Spain

7.4.3.5. Others

7.5. Middle East and Africa

7.5.1. Middle East and Africa Data Center Infrastructure Market, By Solution, 2020 to 2025

7.5.2. Middle East and Africa Data Center Infrastructure Market, By End-User, 2020 to 2025

7.5.3. By Country

7.5.3.1. Saudi Arabia

7.5.3.2. Israel

7.5.3.3. UAE

7.5.3.4. Others

7.6. Asia Pacific

7.6.1. Asia Pacific Data Center Infrastructure Market, By Solution, 2020 to 2025

7.6.2. Asia Pacific Data Center Infrastructure Market, By End-User, 2020 to 2025

7.6.3. By Country

7.6.3.1. China

7.6.3.2. Japan

7.6.3.3. South Korea

7.6.3.4. India

7.6.3.5. Taiwan

7.6.3.6. Thailand

7.6.3.7. Indonesia

7.6.3.8. Others

 

8. Competitive Environment and Analysis

8.1. Major Players and Strategy Analysis

8.2. Emerging Players and Market Lucrativeness

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Vendor Competitiveness Matrix

 

9. Company Profiles

9.1. Hewlett Packard Enterprise Development LP

9.2. Cisco Systems, Inc.

9.3. Microsoft

9.4. Eaton

9.5. Intel Corporation

9.6. Siemens

9.7. Hitachi, Ltd.

9.8. FriedHelm Loh Group (Rittal – The System)

Hewlett Packard Enterprise Development LP

Cisco Systems, Inc.

Microsoft

Eaton

Intel Corporation

Siemens

Hitachi, Ltd.

FriedHelm Loh Group (Rittal – The System)

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