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Data Center Market Insights 2025-2034: Growth Forecast and Strategic Priorities
Data Center
Data Center Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
The size of the data center market has seen substantial growth in the last few years. It is projected to increase from $268.76 billion in 2024 to $289.31 billion in 2025, with a compound annual growth rate (CAGR) of 7.6%. The growth in the historical period can be credited to the expansion of enterprise IT, the spread of mobile devices, the revolution of the internet and digital technologies, the need for business continuity, and data center consolidation.
Data Center Market Size Forecast: What's the Projected Valuation by 2029?
The size of the data center market is predicted to experience swift expansion in the coming years, reaching a value of $432.61 billion by 2029, with a 10.6% Compound Annual Growth Rate (CAGR). The reason behind this growth during the forecast period can be attributed to factors such as enhanced digitalization, the proliferation of cloud services, the adoption of the hybrid cloud, focus on sustainability and green initiatives, and prioritizing cybersecurity, as well as the impact of a remote workforce. Key trends to be observed during the projected period will be the expansion of edge computing, moving towards the cloud, embracing hybrid cloud, integrating AI and machine learning, and the implementation of sustainability initiatives.
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What Are the Drivers Transforming the Data Center Market?
The surge in data volumes is likely to stimulate growth in the data centers market. Data in this context refers to information, converted into a format that can be processed and utilized easily. Every day, diverse organizations process and store significant amounts of information in data centers, resulting in a sustained increase in data volumes that directly influences the growth of the data centers market. To illustrate, a report by Firebolt Analytics Inc., an Israel-based data software firm, indicated in December 2022 that companies are witnessing an uptick in data volumes, with average capacities escalating from 107 TB (terabytes) in 2021 to a projected 213 TB by 2023. This surge underscores the ongoing expansion of data management scale within organizations. Consequently, the rising growth in data volumes is contributing to the expansion of the data center market.
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What Long-Term Trends Will Define the Future of the Data Center Market?
The primary trend gaining traction in the data center market is technology advancement. Major market players are manufacturing products with advanced technology such as mobile data centers with remarkable power capability and streamlined design. Take for example, Verakaria, an American cryptocurrency hosting and mining service provider that launched the Mobile Datacenter. The distinctive characteristics of this data center consist of supporting up to 2.57 MW of power - equivalent to 696 miners - within a 10'W-50'L-14'H product dimension. It's further designed with enhanced power capabilities and a simplistic design. Additional advantages are that this unit is designed from scratch to manage fluctuating weather conditions in any locale. Moreover, it's created for fast transportation and on-site installation.
Which Segments in the Data Center Market Offer the Most Profit Potential?
The data center market covered in this report is segmented -
1) By Type: Colocation, Hyperscale, Edge, Other Types
2) By Component: Solution, Services
3) By Enterprise Size: Large Enterprises, Small And Medium Enterprises (SMEs)
4) By End User: BFSI, IT And Telecom, Government, Energy And Utilities, Other End Users
Subsegments:
1) By Colocation: Retail Colocation, Wholesale Colocation
2) By Hyperscale: Cloud Service Providers, Large-Scale Enterprises
3) By Edge: Micro Data Centers, Mobile Edge Computing
4) By Other Types: Modular Data Centers, Containerized Data Centers, Traditional Data Centers
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Which Firms Dominate the Data Center Market by Market Share and Revenue in 2025?
Major companies operating in the data center market are Caterpillar Inc., Cummins Inc., ABB Ltd., Generac Power System Inc., KOHLER Group, Hitech Power Protection, Rolls Royce Power Systems AG, Aggreko Company, Eaton Corporation, F.G. Wilson, Atlas Copco, Himoinsa SL, MTU Friedrichshafen GmbH, Wärtsilä Corporation, Schneider Electric SE, Siemens AG, Emerson Electric Co., Socomec Group, Riello UPS, Vertiv Co., Delta Electronics Inc., Toshiba Corporation, Fuji Electric Co.Ltd., Kirloskar Electric Company, Yanmar Co. Ltd.
Which Regions Offer the Highest Growth Potential in the Data Center Market?
North America was the largest region in the data center market in 2024. The regions covered in the data center market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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