Global Managed Data Center Services Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (Managed Hosting, Managed Colocation, Managed Storage, Others), By Enterprise Size (Small Enterprises, Medium Enterprises, And Large Enterprises), By Industry Vertical (Banking And Financial Services, Manufacturing, Communication And Technology, Healthcare, Energy, Education, Government, Media And Entertainment, Others), And By Geography - Forecasts From 2022 To 2027

Published:  Nov 2022 Report Code: KSI061610035 Pages: 132

The managed data center services market size is projected to grow at a CAGR of 14.68% to reach US$617.646 billion by 2027, from US$236.831 billion in 2020.

Managed data center services comprise managed hosting, managed colocation, and managed storage services, among others. Other services comprise disaster recovery, network security, compliance, and network connectivity, to name a few.

Managed data center services are expected to witness rapid growth over the next five years due to the growing number of data centers worldwide. Complexities are involved in setting up and operating data centers. Hence, enterprises are looking towards outsourcing as a primary option that helps them to optimize business processes while keeping control over critical IT infrastructure. North America is expected to be the major market for managed data center services, constituting the maximum share, followed by Europe, while the Asia Pacific region is expected to witness maximum expansion over the forecast period on account of high growth being observed in the data center market, favorable government policies, economic growth, and increasing investment towards IT infrastructure.

Enterprises are looking forward to the adoption of managed data center services due to their cost-efficiency.

There is an increasing trend toward large and medium enterprises opting for managed data centers owing to their cost-efficiency, flexibility, and improvement in organizational efficiency. The cost of setting up an in-house data center involves high capital expenditure, along with periodic maintenance expenditure. In addition, an enterprise has to incur high wages for hiring technical staff for upgrading, maintenance, and compliance with stringent government regulations. The space in an in-house data center is also limited and it can be scaled by increasing the capital expenditure on IT infrastructure. Resultantly, enterprises are opting for managed data centers as it saves on huge capital expenditure on IT infrastructure. In addition, managed data centers offer flexibility and scalability by offering a pay-per-use model, so any enterprise can increase their use at their convenience without the need to incur any substantial expenditure. This is one of the major factors driving the demand for managed data center services worldwide. Furthermore, increasing investment towards the adoption of automation solutions and big data across industry verticals coupled with state-of-the-art services offered by vendors to comply with standard government regulations will further propel the demand for managed data center services over the forecast period.

On the basis of enterprise size, large enterprises are expected to hold a major share in the global managed data center services.

Large enterprises are projected to hold a major share of this market on account of a major share of global data center space held by them. Huge volumes of data added to these data centers and huge costs associated with running and managing these data centers are steering business owners towards managed data center services. Small and medium enterprises also hold a significant share in this market. The growth of this market among small and medium enterprises is being driven by the increasing popularity of data center colocation among them. Furthermore, the growth of this market among large enterprises is being driven by the rapidly increasing digitization of business processes and the continuously increasing traffic on the internet, both of which are adding to the huge volumes of data at data centers every day. Currently, large enterprises hold a lion’s share of the total data center space owned by enterprises worldwide and thus hold a major share of the data generated worldwide. As cost reduction continues to be at the forefront of the enterprises’ growth strategies, and the cost of running and maintaining data centers continues to surge exponentially on account of increasing data volumes. Therefore, enterprises are cutting back on their investments in the IT workforce and moving towards managed data center services, thus boosting the market’s growth.

Key Developments

  • In August 2021, QTS Realty Trust was acquired by Blackstone for approximately US$10 billion, including debt. The acquisition enables Blackstone to further scale its business operations with the aim to meet the rising demand for data centers.
  • DXC Technology expanded its data center infrastructure services in North America through a co-location service agreement with Credit Suisse (USA) in May 2019. The company expanded its market presence in data centers to serve its enterprise clients needing mission-critical infrastructure.

COVID-19 Impact on Managed Data Center Services Market

The managed data center services market responded positively to the changes bought upon by the pandemic. Owing to the restrictions and safety concerns, the general workforce had to halt their operations temporarily. The companies had to revise their operating model to incorporate the increased support for remote working. This further led to a higher need for improved cybersecurity arrangements, which further aided the growth of managed data center services market.

Managed Data Center Services Market Scope:

 

Report Metric Details
 Market Size Value in 2020  US$236.831 billion
 Market Size Value in 2027  US$617.646 billion
 Growth Rate  CAGR of 14.68% from 2020 to 2027
 Base Year  2020
 Forecast Period  2022–2027
 Forecast Unit (Value)  USD Billion
 Segments Covered  Type, Enterprise Size, Industry Vertical, And Geography
 Regions Covered  North America, South America, Europe, Middle East and Africa, Asia Pacific
 Companies Covered DXC Technology Company, Dell Inc., HCL Technologies Limited, Fujitsu, Ensono, QTS Realty Trust, Cloudways Ltd.
 Customization Scope  Free report customization with purchase

 

Segmentation:

  • By Type
    • Managed Hosting
    • Managed Colocation
    • Managed Storage
    • Others
  • By Enterprise Size
    • Small Enterprises
    • Medium Enterprises
    • Large Enterprises
  • By Industry Vertical
    • Banking and Financial Services
    • Manufacturing
    • Communication and Technology
    • Healthcare
    • Energy
    • Education
    • Media and Entertainment
    • Others
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • UK
      • Germany
      • France
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • UAE
      • Israel
      • Others
    • Asia Pacific
      • China
      • Japan
      • India
      • South Korea
      • Indonesia
      • Others

Frequently Asked Questions (FAQs)

Q1. What will be the managed data center services market size by 2027?
A1. The managed data center services market is projected to reach US$617.646 billion by 2027.


Q2. What are the growth prospects for the managed data center services market?
A2. The global managed data center services market is projected to grow at a CAGR of 14.68% over the forecast period.


Q3. What is the size of the managed data center services market?
A3. Managed Data Center Services Market was valued at US$236.831 billion in 2020.


Q4. What factors are anticipated to drive the managed data center services market?
A4. Managed data center services are expected to witness rapid growth over the forecast period due to the growing number of data centers worldwide.


Q5. Which region holds the largest market share in the managed data center services market?
A5. North America is expected to be the major market for managed data center services constituting the maximum share, followed by Europe.


1. Introduction

1.1. Market Definition

1.2. 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. Porters 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. Managed Data Center Services Market Analysis, by Type

5.1. Introduction

5.2. Managed Hosting

5.3. Managed Colocation

5.4. Managed Storage

5.5. Others

 

6. Managed Data Center Services Market Analysis, by Enterprise Size

6.1. Introduction

6.2. Small Enterprises

6.3. Medium Enterprises

6.4. Large Enterprises

 

7. Managed Data Center Services Market Analysis, by Industry Vertical

7.1. Introduction

7.2. Banking and Financial Services

7.3. Manufacturing

7.4. Communication and Technology

7.5. Healthcare

7.6. Energy

7.7. Education

7.8. Media and Entertainment

7.9. Others

 

8. Managed Data Center Services Market Analysis, by Geography

8.1. Introduction

8.2. North America

8.2.1. USA

8.2.2. Canada

8.2.3. Mexico

8.3. South America

8.3.1. Brazil

8.3.2. Argentina

8.3.3. Others

8.4. Europe

8.4.1. Germany

8.4.2. France

8.4.3. United Kingdom

8.4.4. Spain

8.4.5. Others

8.5. Middle East and Africa

8.5.1. Saudi Arabia

8.5.2. UAE

8.5.3. Israel

8.5.4. Others

8.6. Asia Pacific

8.6.1. China

8.6.2. Japan

8.6.3. India

8.6.4. South Korea

8.6.5. Indonesia 

8.6.6. Others

 

9. Competitive Environment and Analysis

9.1. Major Players and Strategy Analysis

9.2. Emerging Players and Market Lucrativeness

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Vendor Competitiveness Matrix

 

10. Company Profiles

10.1. DXC Technology Company

10.2. Dell Inc.

10.3. HCL Technologies Limited

10.4. Fujitsu

10.5. Ensono

10.6. QTS Realty Trust

10.7. Cloudways Ltd.

DXC Technology Company

Dell Inc.

HCL Technologies Limited

Fujitsu

Ensono

QTS Realty Trust

Cloudways Ltd.

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