Global Hyperscale Data Center Market Overview
The key driver impacting the hyper-scale data center market is the rising adoption of e-commerce, Web 2.0, big data, cloud computing, and hadoop is creating the infrastructural necessities to increase application performance, server density, and energy efficiency. for instance, according to the BSA Global Cloud Computing Scorecard report estimations, In 2018 globally there are over half of enterprises had adopted cloud computing. during the time period 2012 and 2015, the demand for cloud computing reached 70% and is anticipated to stand for 60 percent of growth during 2020. moreover, the rising adoption and spending on data center technology are estimated to be a significant factor that adds to the market growth.
According to Value Market Research, the global hyperscale data center market size was valued at around USD 21500 million in 2020 and is projected to grow at a CAGR of about 20% during the forecast period of 2021 to 2027.
The rising data traffic is driving data storage thus leads to the constant expansion of the global data center market, which is estimated to augment hyper-scale data center demand in the forecast period. For instance, for instance, as per International Energy Agency(IEA), the requirement for digital services and data is expected to continue its exponential growth in the coming years, with global internet traffic estimated to get double by the end of 2022 and reached to 4.2 zettabytes per year (4.2 trillion gigabytes). mobile internet users number is predictable to augment from 3.8 billion in 2019 to 5 billion by 2025. In contrast, the number of Internet of Things (IoT) connections is anticipated to double from 12 billion to 25 billion. however, high investment and installation costs may hamper the global hyperscale data center market in the long run. also, the storage challenge for hyper-scale data centers is negatively impacting the market. The current industry trends, such as the surge in the trend of colocation and the rising need for high application performance, are expected to provide market players with new market opportunities.
The hyperscale data center market is vast, with many local and global players. the key leaders follow different strategies to advance their market position, such as contracts, amalgamation, extending product portfolio, acquisitions, expansions, acquisitions, and product upgrades to raise their market share across the globe. The major players in the report are Dell Inc., Quanta Computer Inc., Hewlett Packard Enterprise Development LP, Cavium, IBM Corporation, Cisco Systems, Inc., Ericsson, NVIDIA Corporation, Huawei Technologies Co. Ltd., Lenovo Group Ltd., Quanta Computer Inc., Broadcom Ltd., and Intel Corporation.
In this research report, the hyperscale data center market is segmented by component, industry, and region.
Analysis by Component:
By component, the report is categorized into Solution (Server, Storage, Networking, Software), Service (installation & deployment, maintenance & support, monitoring services). The networking equipment segment dominates the component segment with over 30% share in 2020. It is due to the rising demand owing to a rapid rise in the size of IT facilities to sustain the extensive business operations. Moreover, the rising integration of many servers and storage devices needs adequate network infrastructure to make certain the devices can share and communicate enterprise data efficiently, driving demand for networking equipment in the forecast period.
Analysis by Industry:
By industry, the report is categorized into it and telecom, banking financial services, and insurance (BFSI), government and defense, research and academics, retail, healthcare, manufacturing, media and entertainment, and others (ransportation and logistics and energy and utilities). The IT & Telecom segment dominates the application segment with over 45% share in 2020. It is due to the advancements in communication technology creating a need for extreme-reliability and advanced computing solutions to store and handle massive data traffic deriving from several data sources. Moreover, the growing deployment of hyper-scale data centers in this IT and Telecom industry, due to their benefits in scalability, contributes to the high market demand in the IT and telecom industry in the forecast period.
Analysis by Region
In the regional outlook of the global hyperscale data center market, the North America region dominates globally with a 30% market share during the forecast period. It is due to the increasing technological development and technical awareness amongst the users in countries like U.S. and Canada that are driving regional growth. Moreover, the presence of significant players, Cavium, IBM corporations, and the presence of several data centers contribute to the development of the hyper-scale data center market in North America.
Market Segmentation covered in the Report:
- Installation and deployment
- Maintenance and support
- Banking, Financial Services, and Insurance (BFSI)
- IT and telecom
- Research and academics
- Government and defense
- Media and entertainment
- Others (energy and utilities, and transportation and logistics)
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
This market research report has been produced by gathering information on the basis of primary and secondary research. Secondary research has been done by using various sources which include (but not limited to) Company Websites, Paid Data Sources, Technical Journals, Financial Reports, SEC Filings, and other different industry publications.
If specific information is required which is not currently within the scope of the report, it can be provided as a part of customization.