Data Center market size to grow by USD 615.96 bn – Technavio
Published on : Wednesday 07-12-2022
Technavio has announced its latest market research report titled Global Data Center Market 2022-2026.
December 2022 – The data center market size is projected to grow by USD 615.96 billion, progressing at a CAGR of 21.98% from 2021 to 2026. By region, the global data center market is segmented into North America, APAC, Europe, South America, and MEA. North America is estimated to contribute 35% to the growth of the global market over the forecast period. The significant increase in the adoption of cloud services by enterprises across industries in countries such as the US and Canada will facilitate the data center market growth in North America over the forecast period.
One of the key factors driving the global data center market growth is the rise in the adoption of multi-cloud and network upgrades to support 5G. Enterprises are embracing multi-cloud architecture to prevent data loss or downtime due to a localized component failure, ensure security compliances, and meet workload requirements. The demand for the deployment of 4G/5G networks globally is also expected to increase during the forecast period. With the implementation of 5G technologies and the consequent increase in speed, the rate at which data is generated, transmitted, and consumed will grow. This will drive the demand for the upgrade of the existing data center network infrastructure and increase in new data centers constructed closer to the data origins to reduce latency, which will positively impact the market growth in the forecast period.
The rise in the adoption of edge computing is another major factor supporting the global data center market growth. The advantage of edge computing is that the stored content is close to the client machine, thereby reducing latency and improving server response. This type of network architecture was initially implemented by SMEs, but the growing demand for efficient and secure data management has spurred its implementation in large-scale enterprises. Market vendors are focusing on developing and introducing new edge computing platforms, which will help clients to improve their data management capabilities at the edge of the network. The growing deployment of edge computing will, thus, spur the demand for edge data centers, and the trend of edge data center deployments will continue during the forecast period.
This market research report segments the data center market by Component (IT infrastructure, Power management system, Mechanical construction, General construction, and Security solutions) and Geography (North America, APAC, Europe, South America, and MEA).
The competitive scenario categorizes companies based on various performance indicators. Some of the factors considered include the financial performance of companies over the past few years, growth strategies, product innovations, new product launches, investments, and growth in market size, among others.