Press release
Data Center Solutions Market Trends, Size, Growth and Segments by Forecast 2028
The Data Center Solutions Market is expected to grow from USD 338.8 billion in 2023 to USD 591.7 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 11.8% during the forecast period.Download Report Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=232213604
The data center solutions market is fueled by the surging volume of data, accelerated adoption of cloud and edge computing, and the pervasive influence of technologies like AI and IoT. Opportunities arise from the demand for scalable and secure data management, the growth of hybrid and multi-cloud strategies, and the push towards sustainability. Additionally, factors such as 5G integration and heightened security needs contribute to a dynamic market with ample prospects for innovation and expansion.
By offering, the hardware segment will hold the largest market size during the forecast period.
The hardware segment involves physical components that constitute a data center's foundation, including servers, storage systems, networking equipment, and power and cooling infrastructure. Servers serve as the computational backbone, while storage systems house and manage data. Networking equipment facilitates communication between different components, and power and cooling solutions ensure efficient and reliable operation. Hardware offerings are characterized by continuous advancements in performance, energy efficiency, and scalability to meet the evolving demands of modern data centers. Data centers are increasingly adopting specialized hardware accelerators, such as GPUs for parallel processing and AI workloads, FPGAs (Field-Programmable Gate Arrays), and other accelerators designed to optimize performance for specific applications and tasks. The hardware segment has seen the emergence of modular and converged infrastructure solutions. These pre-integrated systems offer simplified deployment, scalability, and ease of management, providing a more streamlined approach to building and expanding data center infrastructure.
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By data center size, the mid-sized data center segment holds the second-largest market share during the forecast period.
Data centers considered mid-sized have an area ranging from 10,000 to 25,000 square feet. Both enterprises and cloud service providers use these types of data centers, and they are known for their ability to handle large amounts of computing power. Due to their operational costs and the need for energy efficiency, these data centers have tight constraints. To optimize the use of servers, mid-sized data centers have a high use of virtualized environments, and efficient allocation of data center resources is required. To facilitate high performance, efficient design, and easy deployment, these data centers are increasingly adopting data center transformation services. Organizations that have outgrown small data centers but do not require the extensive capacity of large data centers often opt for mid-sized facilities to meet their specific scaling requirements. Mid-sized data centers also offer a cost-effective solution for organizations seeking to expand their IT infrastructure without overspending. They have redundancy and high availability features, ensuring business continuity and minimizing the risk of downtime due to equipment failure or maintenance.
By region, Asia Pacific will grow at the highest CAGR during the forecast period.
The data center solutions market in the Asia Pacific (APAC) region is experiencing robust growth, driven by the rapid digitalization of economies, the proliferation of cloud services, and the increasing adoption of emerging technologies. Countries such as China, India, Japan, and Singapore are witnessing a surge in demand for data center infrastructure to support the expanding digital ecosystem. With the rise of e-commerce, IoT applications, and data-driven businesses, there is a pressing need for scalable and efficient data storage and processing facilities. The region's data center market is also influenced by the deployment of 5G networks, fueling demand for edge computing and low-latency data processing.
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Key Players
Some of the key players operating in the data center solutions market are - AWS (US), Microsoft (US), Google (US), Equinix (US), Dell (US), Huawei (China), Digital Realty (US), NTT (Japan), KDDI (Japan), and HPE (US).
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