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Surge In Data Generation Fueling Growth In Data Center Automation Market Emerges as a Core Driver of the Data Center Transformation Market in 2025
Data Center Transformation Market
What Is the Expected CAGR for the Data Center Transformation Market Through 2025?
In recent years, the size of the data center transformation market has witnessed substantial growth. It's projected to expand from $12.05 billion in 2024 to $13.09 billion in 2025, with a compound annual growth rate (CAGR) of 8.6%. The growth experienced during the historical period is due to factors such as surging data center traffic, increasing need for cloud computing services, the prevailing trend of adopting digital enterprise solutions such as ERP and analytics, putting money into state-of-the-art data center technology, and an escalated demand for data center modernization.
What's the Projected Size of the Global Data Center Transformation Market by 2029?
The size of the data center transformation market is predicted to experience accelerated expansion in the forthcoming years, growing to a value of $19.44 billion in 2029, with a compound annual growth rate (CAGR) of 10.4%. Factors contributing to this projected growth during the forecast period include the integration of 5G technology, an increasing need for data centers optimized with software, the expansion of data centers and services based on cloud technology, supportive governmental policies focussed on upgrading data centers, and a rise in technology deployment in data centers. Forecast period trends include the adoption of cutting-edge data center transformation solutions, a focus on sustainable practices through energy-efficient solutions, the launch of innovative products, and strong marketing strategies aimed at enhancing brand visibility.
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Top Growth Drivers in the Data Center Transformation Industry: What's Accelerating the Market?
The surge in the magnitude and velocity of data creation is projected to stimulate the advancement of the data center transformation market. The production of data from various sources and operations is defining data creation, which is escalating because of the broad-scale adoption of digital technologies. These technologies include smartphones, IoT devices, social networks, and e-commerce, which are consistently producing enormous quantities of data from various interactions and sources. Data center transformation furnishes the required infrastructure and tools to manage and analyze the growing volume of generated data effectively. For example, Sky's The Limit (STL), a US firm specializing in optical and digital solutions, stated in their report in December 2022, that the global data generated in 2021 was approximately 79 zettabytes in volume. It is projected that by 2025, the volume will reach around 150 zettabytes, double the projected quantity for 2022. Hence, the upsurge in the volume and speed of data generation is fueling the expansion of the data center transformation market.
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What Trends Will Shape the Data Center Transformation Market Through 2029 and Beyond?
Big names in the data center transformation market are innovating with technologies such as data center suites to boost their market profitability. Essentially, a data center suite is a compartmented space within a data center facility, fully customized to accommodate a client's unique requirements. To illustrate, in September 2023, the American tech firm, Honeywell International Inc., rolled out a novel line of solutions, named Honeywell data center suite. This suite aims to help data center administrators and proprietors enhance uptime, staff productivity, critical asset condition, and manage operational expenses, while also offering a more in-depth understanding of sustainability-focused KPIs. Moreover, this offering facilitates proactive supervision, management of pivotal infrastructure, a condition-directed maintenance plan, and holistic analytics to heighten efficiency and curtail costs associated with data center operations.
What Are the Main Segments in the Data Center Transformation Market?
The data center transformation market covered in this report is segmented -
1) By Service: Consolidation Services, Optimization Services, Automation Services, Infrastructure Management Services
2) By Level Of Data Center: Tier 1, Tier 2, Tier 3, Tier 4
3) By End-User: Information Technology And telecommunications, Banking Financial Services And Insurance (BFSI), Healthcare, Energy, Manufacturing, Government, Other End-Users
Subsegments:
1) By Consolidation Services: Server Consolidation, Storage Consolidation, Network Consolidation, Data Center Migration And Integration
2) By Optimization Services: Energy Efficiency Optimization, Cost Optimization, Performance Optimization, Resource Utilization Optimization
3) By Automation Services: Cloud Automation, Network Automation, Infrastructure Automation, Security Automation
4) By Infrastructure Management Services: Data Center Monitoring And Management, Virtualization Management, Disaster Recovery And Backup Management, Compliance And Risk Management
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Which Top Companies are Driving Growth in the Data Center Transformation Market?
Major companies operating in the data center transformation market are Microsoft Corporation, NTT Communications Corporation, Dell Inc., Amazon Web Services (AWS), accenture* plc, International Business Machines Corporation, Cisco Systems Inc., Schneider Electric SE, ABB Ltd., Google Cloud, Eaton Corporation plc, Cognizant, Emerson Network Power Inc., Hindustan Computers Limited Technologies, Atos, Wipro Ltd., Equinix Inc., NetApp Inc., Digital Realty, Citrix Systems Inc., HDR Inc., Cloud Software Group, Gensler, CyrusOne, Corgan, Acronis
Which Regions Will Dominate the Data Center Transformation Market Through 2029?
North America was the largest region in the data center transformation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center transformation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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