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Data Center Market Investigation Reveals Enhanced Growth during the forecast Period, 2018-2028

Mar 18th 2019 at 4:21 AM

A new Fact.MR study foresees the data center market to bring in nearly US$ 178,000 Mn revenues by 2028-end. Reliance on the data center continues to grow, albeit more workloads are shifting to multi-tenant sites from on-premise facilities. The rise of hyperscale cloud providers, coupled with the hybrid cloud and edge data center trends will continue to influence growth of the data center market.

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Internet of things (IoT) has gained traction as the backbone of advancements, thereby creating the need for managed services across commercial sectors. This has remarkably spurred demand for efficient deployment of software for effective management & storage of data. Additionally, the trend of green data center has gained increased momentum against the backdrop of the incessant requirement for energy and cost savings. Enhanced efficiency and sustainability are top agendas emphasized in the green data center development.

Data Center Market: Installation & Construction Activities Spearhead with Surging Activities of New Data Center Construction

Revenues from installation & construction of data centers are poised to remain significantly larger than those from consulting & integration services, albeit the latter will present a comparatively higher growth rate through 2028. Construction of new data center space has demonstrated a five-year high. North American Data Centers, a firm that tracks the data center industry in North America, has stated data center projects of nearly 300 megawatts capacity are under construction in the region.

The surge in construction activities of new data centers is underpinned by a five-year high inventory of the industry, and reflecting increased confidence of space leases by real estate developers across leading geographic markets. Revenues from new data centers are likely to surpass US$ 104,000 Mn by 2028-end.Although data center rebuilds currently account for significantly lower share of the data center market, an impressive growth rate, even though slightly lower than new data center construction, has been foreseen for data center rebuilds in the upcoming years.

Growth of the data center rebuilds is primarily driven by the hyperscale service providers, who are changing ways an IT space is sold and built. In the meantime, the data center providers are revamping their construction strategies for delivering capacity faster in larger chunks. Ongoing shift of the enterprise IT workloads, moving out of the on-premises data center to purpose-built facilities that are operated by colocation and cloud platforms providers, is the “trend behind the trend”.

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Data Center Market: Impressive Momentum for Consulting & Integration of Data Centers

Data center consulting and integration services are likely to record an impressive rise in light of rising complexity pertaining to the network design requirements. This coupled with growing need for data centers across a wide range of industrial sectors will continue to augur well for growth of the data center market in the near future. Revenues from data center consulting & integration are projected to exhibit an impressive 12.5% CAGR through 2028, which is greater than those from installation & construction.

Data center end-user proliferation, in combination with the rise in customizability and versatility in relevant network designs, will continue to be a key growth determinant for data center the market. With data center transformation being one of the top agendas among enterprises, demand for consulting & integration services is high as enterprises seek expertise for aiding their business strategy, planning, and implementation. “Data center service providers that invest in the consulting & integration skills, for supporting the digital initiatives of their customers, will continue to witness robust remunerativeness in the near future” says a lead Fact.MR analyst.

The data center market will continue to showcase high growth in North America, wherein majority share of the market will continue to be accounted by the U.S. The data center market in Europe will trail that of North America, in terms of revenues; however revenues from Europe will increase at a comparatively higher rate than those from North America through 2028.

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About Fact.MR

Fact.MR is a fast-growing market research firm that offers the most comprehensive suite of syndicated and customized market research reports. We believe transformative intelligence can educate and inspire businesses to make smarter decisions. We know the limitations of the one-size-fits-all approach; that's why we publish multi-industry global, regional, and country-specific research reports.

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