Datacenter Deployment Spending Market: Future Demand and Growth Analysis

A fresh intelligence study by Transparency Market Research (TMR) notified that the global Datacenter Deployment Spending Market has vast opportunities owing to the emergence of cloud computing and the competitive landscape is experiencing an influx of new entrants, who are eating into the shares of market leaders. Some of the prominent companies currently operating in the global datacenter deployment spending market are: Google Inc., AT&T, NTT Communication Corporation, Equinix, Microsoft, IBM, HP Company, Cisco Systems, and Digital Reality.

If the estimations of the TMR report are to be believed, the demand in the global datacenter deployment spending market will expand at an impressive CAGR of 13.5% during the forecast period of 2017 to 2022. Revenue-wise, this market contained opportunities worth of US$44,346.7 mn in 2017, which will nearly double-up by 2022, when the valuation is projected to reach US$83,650.5 mn. The report observes that most of the key players are staying ahead of the curve by expanding their customer base, focusing on digital data, and serving the growing need for high computation power. In the near future, the companies who have effective and efficient data center for their businesses will be able to sustain themselves in this highly competitive environment, while the new enterprises will construct data center facilities of their own rather than depending on managed infrastructure solutions.

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Based on end-buyers, the global datacenter deployment spending market gains maximum demand for the segment of service provider, which accounted for 52.6% of the overall demand in 2017 and is estimated to constitute 57.3% of the total demand by 2022. In terms of revenue, service provider segment of datacenter deployment spending market is estimated to be worth US$47,897.3 mn by 2022. Region-wise, the report picks out North America are most lucrative region, which is anticipated to serve a demand worth of US$29,389.7 mn by 2022.

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Big Data and IoT a Boon for the Market

Emergence of the Internet of Things (IoT), increased spending on cloud data center, need for colocation and managed service data centers, and growing usage of big data analytics are some of the key factors driving the global datacenter deployment spending market. The report observes that several cloud service providers are constructing cloud data centers in order to offer cloud-based services to end-users of all kind. Small and medium enterprises are inclining towards cloud data centers as it offers striking benefits such as reliability, scalability, and overall reduction in cost of repeated processes.

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Though it is difficult to gauge exactly how much is spent by companies on datacenters as they simply lump them in with other capital expenditures, cloud service providers confess that datacenter spend accounts for the biggest portion of their capital expenditure. In the recent times, major cloud providers have started shifting from third party datacenter facilities to leased processes. For example, Microsoft and IBM have collaborated with 21Vianet, a Chinese datacenter provider, to cater to Asia Pacific market. A number of businesses are now using consumer based applications that are generating large amounts of structured and unstructured data. Big data comes in very hand for this high volume of data in order to help the organizations of understand their business and make decisions based on them. Big data facilitates faster analysis and increases the efficiency of computing resources. The report also attributes the prosperity of the global data center deployment spending market to the growing usage of RFID sensors to track, tag, connect, and read objects in warehouses and logistics to popularize the concept of IoT. With ever increasing number of smart devices, the ideas such as connected home, connected cars, healthcare, and smart cities are seeing the light of the day.

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