Global Data Center Service Market, By Type (Design & Consulting, Installation, Support and Maintenance, Data Storage, Backup and Archiving, Perimeter Security (Firewalls and Virus, Malware and Ransomware Prevention Programs), Outsourcing and Colocation of Data Center Services, Internet Access Optimization, Network Service, Security and Connectivity Management, Website Management, Regulatory and Standard Compliance, Disaster Recovery and Business Continuity Services, and Others), Service Department (Help Desk, Research and Development (R&D), Design and Engineering, Employee Training, Technical Support and Consulting, and Financial Support Services), Tier Standard (TIER III, TIER IV, TIER II, TIER I), Size (Small Size Data Center, Large Data Center, and Medium Size Data Center), Location (Brownfield and Greenfield), End User (Enterprise, Colocation, Hyperscale, Edge Data Centers, and Others), Industry (IT and Telecommunications, Banking, Financial Services and Insurance (BFSI), Government and Defense, Healthcare, Energy and Utility, Retail & E-Commerce, Research & Academic, Manufacturing, Media & Entertainment, Power and Energy, Transport & Logistics, and Others) - Industry Trends and Forecast to 2031.
Data Center Service Market Analysis and Insights
The global data center service market encompasses a diverse range of services tailored to meet the complex needs of enterprises across worldwide. This market includes key segments such as design and consulting, installation, support and maintenance, data storage, backup and archiving, perimeter security (firewalls and virus, malware and ransomware prevention programs), outsourcing and colocation of data center services, internet access optimization, network service, security and connectivity management, website management, regulatory and standard compliance, disaster recovery and business continuity services, and others. Driven by the demand for growing technological advancement and features in data center, the exponential increase in data generated by businesses and consumers, digital transformation initiatives by industries, the rise of outsourcing and colocation of data center services, and increase in cloud computing services, the market is characterized by intense competition among major software vendors and niche players. Setting up and maintaining data centers requires High Initial Investment, and rising Cyber threat on data center services are the restraining factors for the growth of the market. Rise in Edge computing, initiation of green data center, and rising opportunity for micro and modular data centers for small scale industries is opportunity for the growth of the market. Shortage of skilled force in data center management, and challenging regulatory landscape concerning sustainability issues are challenges for the growth of the market.
Data Bridge Market Research analyzes that the global data center service market is expected to reach a value of USD 59.15 billion by 2031 from USD 19.56 billion in 2023, growing at a CAGR of 14.9% during the forecast period of 2024 to 2031.
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Report Metric
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Details
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Forecast Period
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2024 to 2031
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Base Year
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2023
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Historic Years
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2022 (Customizable to 2016-2021)
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Quantitative Units
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Revenue in USD Billion
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Segments Covered
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Type (Design & Consulting, Installation, Support and Maintenance, Data Storage, Backup and Archiving, Perimeter Security (Firewalls and Virus, Malware and Ransomware Prevention Programs), Outsourcing and Colocation of Data Center Services, Internet Access Optimization, Network Service, Security and Connectivity Management, Website Management, Regulatory and Standard Compliance, Disaster Recovery and Business Continuity Services, and Others), Service Department (Help Desk, Research and Development (R&D), Design and Engineering, Employee Training, Technical Support and Consulting, and Financial Support Services), Tier Standard (TIER III, TIER IV, TIER II, TIER I), Size (Small Size Data Center, Large Data Center, and Medium Size Data Center), Location (Brownfield and Greenfield), End User (Enterprise, Colocation, Hyperscale, Edge Data Centers, and Others), Industry (IT and Telecommunications, Banking, Financial Services and Insurance (BFSI), Government and Defense, Healthcare, Energy and Utility, Retail & E-Commerce, Research & Academic, Manufacturing, Media & Entertainment, Power and Energy, Transport & Logistics, and Others)
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Countries Covered
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Germany, France, Italy, U.K., Netherlands, Belgium, Spain, Switzerland, Russia, Turkey, Poland, Sweden, Denmark, Finland, Norway, Rest of Europe, China, Japan, South Korea, India, Taiwan, Vietnam, New Zealand, Australia, Philippines, Thailand, Malaysia, Singapore, Indonesia and the Rest of Asia-Pacific, U.S., Canada, and Mexico, South Africa, U.A.E., Saudi Arabia, Egypt, Bahrain, Oman, Qatar, Kuwait, Israel, Rest of Middle East and Africa, Brazil, Argentina, and Rest of South America
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Market Players Covered
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Dell Inc., Hewlett Packard Enterprise Development LP, IBM, Cisco Systems, Inc., Schneider Electric, Hitachi, Ltd., Huawei Digital Power Technologies Co., Ltd., Fujitsu, Equinix, Inc., HCL Technologies Limited, DC-Datacenter-Group GmbH, Fichtner GmbH & Co. KG, Tetra Tech, Inc., INFINITI IT LIMITED, Vertiv Group Corp., APL Data Center, Azura Consultancy, Comarch SA, NTT DATA Group Corporation, Verizon, NEC Corporation, Capgemini, and Sify Technologies among others
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Market Definition
The data center service refers to the ecosystem of services provided by data center operators and service providers to support the storage, processing, and distribution of digital data and applications. These services include colocation, managed hosting, network connectivity, managed services, security solutions, consulting, and support services.
Global Data Center Service Market Dynamics
This section deals with understanding the market drivers, advantages, opportunities, restraints, and challenges. All of this is discussed in detail below:
Drivers
- Growing Technological Advancement and Features in Data Centre
Technological enhancements are not just incremental improvements but are pivotal in transforming the landscape of the data center service market. Technological advancements have risen and gained a prominent role in economic growth, national security, and international competitiveness. Technological advancement is evolving AI and ML, 5G network integration, server virtualization, advanced cooling systems and many other advancements and add-on features in the data center.
- Exponential Increase in Data Generated by Businesses and Consumers
The global data landscape is witnessing an unprecedented surge, primarily driven by factors such as the proliferation of smart devices, the growth of e-commerce. Businesses are collecting data on customer preferences, market trends, and operational metrics, while consumers contribute through social media interactions, online transactions, and connected devices. This increasing volume of data is projected to leap to 181 zettabytes by 2025. The implications of this data deluge are manifold, with one of the most significant being its role as a catalyst for the global data center service market.
Opportunity
- Rise in Edge Computing
The evolution of edge computing represents a significant shift in the landscape of data processing and management, creating substantial opportunities for the global data center service market. As the demand for real-time data processing and reduced latency continues to grow, edge computing is emerging as a critical solution, poised to transform traditional data center operations and drive innovation.
Edge computing involves processing data closer to the source of data generation, rather than relying solely on centralized cloud data centers. This paradigm shift is essential for applications requiring immediate data processing, such as autonomous vehicles, smart cities, IoT devices, and augmented reality. By minimizing the distance data must travel, edge computing significantly reduces latency and bandwidth usage, enhancing the performance and efficiency of critical applications.
Restraints/Challenges
- Shortage of Skilled Force in Data Center Management
The shortage of skilled workforce in data center management has several negative effects on the efficiency and effectiveness of data center operations. Firstly, without adequate skilled personnel, data centers may struggle to maintain optimal performance levels, leading to increased downtime and potential disruptions in service delivery. Secondly, the lack of skilled workforce hampers innovation and the implementation of advanced technologies within data centers, limiting their ability to adapt to changing market demands and technological advancements. Moreover, inadequate staffing can compromise cybersecurity measures, potentially exposing sensitive data to security breaches and threats.
- Setting Up and Maintaining Data Centres Requires High Initial Investment
Setting up a data center demands a substantial financial outlay, encompassing the costs of land acquisition, construction, and the installation of advanced IT and cooling equipment. These facilities must be equipped with high-performance servers, storage systems, robust networking infrastructure, and sophisticated security measures. Additionally, ensuring energy efficiency and reliability requires the deployment of Uninterruptible Power Supplies (UPS), generators, and advanced cooling systems. The Capital Expenditure (CAPEX) for such an endeavor can run into millions of dollars, making it a formidable barrier to entry for many businesses.
Recent Developments
- In June 2024, Schneider Electric demystified PowerChute with addressing misconceptions. Customer feedback prompted action with a 30-day free trial for PowerChute in virtualized environments, and a new e-learning course. This approach increased Service understanding and adoption, benefiting the company's reputation and customer satisfaction
- In March 2024, Schneider Electric collaborated with NVIDIA to optimize data center infrastructure, introducing AI data center reference designs. This benefitted the company by enhancing deployment efficiency, scalability, and sustainability, meeting the evolving demands of AI workloads and driving innovation across industries
- In June 2024, Dell Inc., APEX Pay-Per-Use solutions delivered substantial benefits, with a 194% three-year ROI, reduced operational costs, and increased staff Serviceivity. These solutions accelerated development, improved agility, and enhanced customer satisfaction, fueling the company's growth and competitiveness in the market
- In May 2024, Dell Inc., introduced PowerEdge XE9680L with direct liquid cooling and rack-scale architecture boosted the company's AI computing capabilities, offering high GPU density, efficient cooling, and seamless deployment, enhancing Serviceivity and innovation in AI workloads
- In September 2021, APL Data Center, recognized as winner of two perfecto 2021 calls for project launch with LCIE Bureau Veritas, advancing environmental impact assessment standards for data centers and telecom services. This collaboration enhances APL's position in promoting eco-friendly digital solution
Global Data Center Service Market Scope
The global data center service market is segmented into seven segments based on type, service department, tier standard, size, location, end user, and industry. The growth among segments helps you analyze niche pockets of growth and strategies to approach the market and determine your core application areas and the differences in your target markets.
Type
- Design and Consulting
- Installation
- Support and Maintenance
- Data Storage, Backup and Archiving
- Perimeter Security (Firewalls and Virus, Malware and Ransomware Prevention Programs)
- Outsourcing and Colocation of Data Center Services
- Internet Access Optimization
- Network Service, Security and Connectivity Management
- Website Management
- Regulatory and Standard Compliance
- Disaster Recovery and Business Continuity Services
- Others
On the basis of type, the market is segmented into design & consulting, installation, support and maintenance, data storage, backup and archiving, perimeter security (firewalls and virus, malware and ransomware prevention programs), outsourcing and colocation of data center services, internet access optimization, network service, security and connectivity management, website management, regulatory and standard compliance, disaster recovery and business continuity services, and others.
Service Department
- Help Desk
- Research and Development (R&D)
- Design and Engineering
- Employee Training
- Technical Support and Consulting
- Financial Support Services
On the basis of service department, the market is segmented into help desk, Research and Development (R&D), design and engineering, employee training, technical support and consulting, and financial support services.
Tier Standard
- TIER III
- TIER IV
- TIER II
- TIER I
On the basis of tier standard, the market is segmented into tier iii, tier iv, tier ii, and tier I.
Size
- Small Size Data Center
- Large Data Center
- Medium Size Data Center
On the basis of size, the market is segmented into small size data center, large data center, and medium size data center.
Location
- Brownfield
- Greenfield
On the basis of location, the market is segmented into brownfield and Greenfield.
End User
- Enterprise
- Colocation
- Hyperscale
- Edge Data Centers
- Others
On the basis of end user, the market is segmented into enterprise, colocation, hyperscale, edge data centers, and others.
Industry
- IT and Telecommunications
- Banking, Financial Services and Insurance (BFSI)
- Government and Defense
- Healthcare
- Energy and Utility
- Retail & E-Commerce
- Research & Academic
- Manufacturing
- Media & Entertainment
- Power and Energy
- Transport & Logistics
- Others
On the basis of industry, the market is segmented into IT and telecommunications, Banking, Financial Services and Insurance (BFSI), government and defense, healthcare, energy and utility, retail & e-commerce, research & academic, manufacturing, media & entertainment, power and energy, transport & logistics, and others.
Global Data Center Service Market Regional Analysis/Insights
Global data center service market is analysed and market size insights and trends are provided based on type, service department, tier standard, size, location, end user, and industry.
The countries covered in global data center service market are Germany, France, Italy, U.K., Netherlands, Belgium, Spain, Switzerland, Russia, Turkey, Poland, Sweden, Denmark, Finland, Norway, rest of Europe, China, Japan, South Korea, India, Taiwan, Vietnam, New Zealand, Australia, Philippines, Thailand, Malaysia, Singapore, Indonesia and the rest of Asia-Pacific, U.S., Canada, and Mexico, South Africa, U.A.E., Saudi Arabia, Egypt, Bahrain, Oman, Qatar, Kuwait, Israel, rest of Middle East and Africa, Brazil, Argentina, and rest of South America.
North America is expected to dominate global data center service market due to increase in cloud computing services. U.S. is expected to dominate North America data center service market due to the rise of outsourcing and colocation of data center services. Germany is expected to dominate Europe data center service market due to growing technological advancement and features in the country. China is expected to dominate Asia-Pacific data center service market due to digital transformation initiatives by industries in the country.
The country section of the report also provides individual market-impacting factors and changes in regulation in the market domestically that impact the current and future trends of the market. Data points such as new sales, replacement sales, country demographics, regulatory acts, and import-export tariffs are some of the major pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, and the impact of sales channels are considered while providing forecast analysis of the country data.
Competitive Landscape and Global Data Center Service Market Share Analysis
The global data center services market competitive landscape provides details of competitors. Details included are company overview, company financials, revenue generated, market potential, investment in R&D, new market initiatives, production sites and facilities, company strengths and weaknesses, product launch, product approvals, product width and breadth, application dominance, and product type lifeline curve. The above data points provided are only related to the company’s focus on the market.
Some of the major players operating in the market are Dell Inc., Hewlett Packard Enterprise Development LP, IBM, Cisco Systems, Inc., Schneider Electric, Hitachi, Ltd., Huawei Digital Power Technologies Co., Ltd., Fujitsu, Equinix, Inc., HCL Technologies Limited, DC-Datacenter-Group GmbH, Fichtner GmbH & Co. KG, Tetra Tech, Inc., INFINITI IT LIMITED, Vertiv Group Corp., APL Data Center, Azura Consultancy, Comarch SA, NTT DATA Group Corporation, Verizon, NEC Corporation, Capgemini, and Sify Technologies among others.
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