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Global Managed Data Center Services Market Outlook 2025-2034: Trends, Innovations, And Future Outlook
Managed Data Center Services Market Size
What Is the Managed Data Center Services Market Size and Projected Growth Rate?
The market value of managed data center services has seen a swift expansion recently. The market, which was valued at $413.39 billion in 2024, is expected to surge to $470.6 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 13.8%. The increased necessity for data storage, broader digitalization, heightened dependence on data-centric processes, greater intricacy of infrastructure, and the worldwide expansion of businesses contributed to the growth observed in the historical period.
Expectations for the managed data center services market size suggest a swift expansion over the forthcoming years, with a projected growth to $893.98 billion in 2029 at a compound annual growth rate (CAGR) of 17.4%. This anticipated growth during the forecast period can be linked to various factors such as the adoption of cloud computing, the surge in data generation, the necessity for scalable and flexible infrastructure, escalating cybersecurity concerns, and the globalization of businesses. Noteworthy trends for the forecast period include the implementation of artificial intelligence in data center management, the emphasis on sustainable and green data centers, the inclusion of edge computing solutions, growing demand for modular data centers and heightened utilization of software-defined data center (SdDC) solutions.
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What Are the Major Segments in the Managed Data Center Services Market?
The managed data center services market covered in this report is segmented -
1) By Type: Managed Storage, Managed Hosting, Managed Collocation, Other Types
2) By Deployment Type: Cloud, On-Premise
3) By Enterprise Size: Small Enterprises, Medium Enterprises, Large Enterprises
4) By End-User Industry: BFSI (Banking, Financial Services, And Insurance), Energy, Retail, Healthcare, Manufacturing, Other End-User Industries
Subsegments:
1) By Managed Storage: Backup And Recovery Solutions, Data Archiving Services
2) By Managed Hosting: Dedicated Hosting, Virtual Private Servers (VPS)
3) By Managed Collocation: Rack Space Services, Power And Cooling Management
4) By Other Types: Disaster Recovery As A Service (DRaaS), Security Management Services
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What Are The Driving Managed Data Center Services Market Evolution?
The proliferation of data centers is anticipated to boost the expansion of the managed data center services market in the future. Essentially, a data center is a physical location designed for the purpose of storing and managing data, utilized for diverse reasons such as the creation of new products or services or the upkeep and repair of existing ones. Comprehensive functionality, maintenance, and scrutiny regarding system health and wellbeing are offered by a managed data center, alleviating the responsibility of deployment, management, and oversight. For example, the Korea Data Center Council (KDCC), an organization based in Korea devoted to encouraging the growth of the data center industry, reported in February 2022 that the total capacity of colocation data centers' information technology (IT) load reached 430 MW, comprising 11% of the entire APAC IT load. Savills Korea's forecasts anticipated that the total commercial data center IT load in Korea will increase by 700 MW between 2021 and 2023, making up 15% of the total capacity in the Asia-Pacific region. Consequently, the increasing count of data centers is fueling the expansion of the managed data center services market.
Which Firms Dominate The Managed Data Center Services Market Segments?
Major companies operating in the managed data center services market include Microsoft Corporation, Verizon Communications Inc., AT&T Inc., Deutsche Telekom AG, Dell Inc., plc, International Business Machines Corporation, Cisco Systems Inc., Orange S.A., Fujitsu Limited, Hewlett Packard Enterprise Development LP, Tata Consultancy Services Ltd., Telefonaktiebolaget LM Ericsson, Capgemini SE, NTT Data Inc., Cognizant Technology Solutions U.S. Corporation, Infosys Limited, ZTE Corporation, Lumen Technologies Inc., DXC Technology, CGI Inc., Atos SE, Wipro Ltd., HCL Technologies Limited, Equinix Inc., Rackspace Inc., Hitachi Vantara Corporation, LTIMindtree Limited, Unisys Corporation, Cyxtera Technologies Inc.
What Trends Are Expected to Dominate the Managed Data Center Services Market in the Next 5 Years?
The surge in technological progression has been identified as a leading trend influencing the managed data center services market. Dominant firms in this sector are turning to new technologies to maintain their market standing. To site an example from June 2022, Cisco Umbrella, a company based in the US that specializes in flexible cloud-based protection, unveiled its Secure Access Service Edge (SASE) data centers for security. This system integrates elements such as firewalls, a secure web gateway (SWG), DNS-layer protection, a cloud access security broker (CASB), and threat intelligence into one comprehensive cloud service. This allows organizations of any size to ensure their customer's safety no matter their location. Cisco Umbrella data centers have been strategically situated near Internet exchange points (IXPs) to assure swift and trustworthy service. These data centers operate on a carrier-neutral basis and have been selected purely for their ability to deliver superior connectivity and services to the regions they encompass.
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Which Is The Largest Region In The Managed Data Center Services Market?
North America was the largest region in the managed data center services market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the managed data center services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Managed Data Center Services Market?
2. What is the CAGR expected in the Managed Data Center Services Market?
3. What Are the Key Innovations Transforming the Managed Data Center Services Industry?
4. Which Region Is Leading the Managed Data Center Services Market?
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