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Global Data Center Transformation Market Expected to Achieve 10.3% CAGR by 2029: Growth Forecast Insights
Data Center Transformation
What Is the Expected CAGR for the Data Center Transformation Market Through 2025?
The market size for data center transformation has seen robust growth in the past few years. The market, which was valued at $12.05 billion in 2024, is set to expand further to $13.09 billion in 2025, with a compound annual growth rate (CAGR) of 8.6%. The notable growth during the historical duration was spurred by factors such as an increase in data center traffic, a rise in the demand for cloud computing services, implementation of innovative corporate solutions like ERP and analytics, investments into advanced data center technologies, and the growing necessity for data center modernization.
What's the Projected Size of the Global Data Center Transformation Market by 2029?
In the upcoming years, the data center transformation market is projected to experience swift expansion. The market is predicted to reach a value of $19.38 billion in 2029, growing at a compound annual growth rate (CAGR) of 10.3%. The predicted growth during this period can be linked to the implementation of 5G technology, an increase in demand for data centers optimized by software, the growth of cloud-based services and data centers, positive governmental policies advocating data center enhancements, and the escalated use of technology in data centers. Key trends during this forecast period are expected to include the adoption of sophisticated solutions for data center transformation, a focus on sustainable, energy-efficient solutions, the launch of innovative products and strong marketing strategies to bolster brand visibility.
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Top Growth Drivers in the Data Center Transformation Industry: What's Accelerating the Market?
The surge in the quantity and pace of data being produced is predicted to drive the expansion of the data center transformation market. The creation of data, via a variety of sources and activities, is increasing due to the prevalent use of digital technologies. Examples of these technologies include smartphones, IoT devices, social media platforms, and online transactions, all of which are consistently producing large quantities of data. Data center transformation offers the required infrastructure and tools to effectively handle and process this growing amount of data. For example, a report from Sky's The Limit (STL), a US-based optical and digital solutions company, indicated that the global data produced in 2021 was approximately 79 zettabytes. By 2025, it is projected that around 150 zettabytes of data, double the predicted quantity for 2022, will be created. Therefore, the surge in data generation quantity and pace is fuelling 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?
Leading firms in the data center transformation market are focusing on the development of innovative technologies such as data center suites to enhance their market profitability. A data center suite is a specialized and fully-enclosed area within a data center facility, customized to fulfill specific requirements of a client or tenant. For example, in September 2023, Honeywell International Inc., a technology firm based in the US, introduced a new suite of solutions known as the Honeywell data center suite. This suite aims to help data center owners and managers improve uptime, employee productivity, the health of essential assets, and operational costs, while offering improved understanding of sustainability KPIs. Moreover, the suite facilitates anticipatory monitoring, management of crucial infrastructure, condition-based maintenance approaches, and in-depth analytics to enhance efficiency and minimize costs related to data center operations.
What Are the Main Segments in the Data Center Transformation Market?
The data center transformationmarket 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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