Hyperscale Data Center Market Revenue, Opportunity, Forecast and Value Chain 2017-2025

Hyperscale data centers are modified data centers which are customized for the particular requirement of an organization. Hyperscale data is a cost-effective technology that can easily blend in with the existing infrastructure and protect & store the integrity of corporate data. The increased adoption of grid computing environments has led to a rise in the demand for computing, networking, and storage resources. The growing popularity of cloud-based infrastructure across various organizational levels is predicted to boost the need for hyperscale data centers over the forecast period. Owing to developments of technology, there has been a significant transition of the business models for various end-user industries. Global cloud-based service providers such as Microsoft Corporation, Amazon, and Google Inc are likely to establish hyperscale data centers over the forecast period. Web service companies are employing these centers to transcode and process videos, which, along with the exponential growth of data, is projected to drive the hyperscale data center market over the next few years. Rise in big data content along with increasing demand for higher energy efficiency is expected to gain traction for the growth of hyperscale data center market. Rapid penetration of hyperscale data centers in manufacturing and healthcare sector is likely to fuel the growth of this market. This data is used in various applications such as social media, e-commerce, big data, and cloud computing. The development of a cloud infrastructure is estimated to create additional scope for hyperscale data centers over the forecast period.

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The market is segregated by component into the solutions and services categories. Solutions have been further sub-segmented into the following divisions: storage, networking, and software & services including installation & deployment, maintenance & support, and consulting. Storage solutions are expected to register significant growth over the forecast period owing to their effective and cost-efficient aspects which help scale IT infrastructure. Maintenance & support is anticipated to hold a considerable share in the hyperscale data center market due to the onsite & offsite services offered which include resale, recycling, device repair, and device wiping. Based on data center size, the hyperscale data center market is divided into the small & medium and large groups. Small- & medium-sized data centers are projected to witness rapid growth due to the rising adoption of cloud-based infrastructure by small- and medium-scale enterprises, especially in the developing countries of Asia Pacific. On the basis of industry vertical, the hyperscale data center market is split into the following classes: IT & telecom, BFSI, health care, media & entertainment, retail, defense, and others. BFSI accounted for a major market share in 2016 and is expected to retain its dominance over the forecast period. The exponential growth of data in the financial sector along with the rising need for consumer analysis to detect fraud and study consumer trends are predicted to drive this sector over the forecast period.

Geographically, the hyperscale data center market is distributed over North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. North America constituted a dominant market share in 2016 and is anticipated to retain its position over the forecast period, propelled by the cost-efficiency of the technology and the presence of numerous vendors, leading to major investments in the development of cloud infrastructure in the region. The U.S. accounted for a major markets share in North America. Asia Pacific is estimated to record a significant growth pace over the forecast period on account of the rising data center traffic and the growth of consumer electronics in this region.

Key players in the hyperscale data center market include International Business Machines Corporation, Hewlett Packard, Cisco Systems, Inc., Dell Inc., NVIDIA Corporation, Intel Corporation, Lenovo Group Ltd., Huawei Technologies Co. Ltd., Broadcom Ltd, Cavium, and Quanta Computer Inc., among others.

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