Global Hyperscale Data Center Market Segmentation, By Infrastructure (IT Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, General Construction), Component (Solutions, Services), Data Center Size (Small and Medium-Sized Data Centers, Large Data Centers), Application (Banking, Financial Services, and Insurance, IT and Telecom, Research and Academics, Government and Defense, Retail, Manufacturing, Healthcare, Others), End User (Cloud Providers, Colocation Providers, Enterprises) – Industry Trends and Forecast to 2031.
Hyperscale Data Center Market Analysis
Governments all around the globe have taken initiatives to strongly promote the deployment of hyperscale data centers along with emphasizing on the importance of digitalization. Governments have developed special economic zones and industrial parks for data center development. Tax exemptions have been provided to both large scale and small and medium scale enterprises for the development of hyperscale data centers.
Hyperscale Data Center Market Size
Global hyperscale data center market size was valued at USD 3.69 billion in 2023 and is projected to reach USD 3.37 billion by 2031, with a CAGR of 1.5% during the forecast period of 2024 to 2031.
Report Scope and Market Segmentation
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Attributes
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Hyperscale Data Center Key Market Insights
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Segmentation
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Countries Covered
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U.S., Canada and Mexico in North America, Brazil, Argentina and Rest of South America as part of South America, Germany, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA).
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Key Market Players
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Intel Corporation (U.S.), Cisco Systems Inc. (U.S.), Hewlett Packard Enterprise Development LP (U.S.), Telefonaktiebolaget LM Ericsson (Sweden), Marvell (U.S.), IBM (U.S.), NVIDIA Corporation (U.S.), Amazon Web Services, Inc. (U.S.), Equinix, Inc. (U.S.), Apple Inc. (U.S.), NTT Communications Corporation (Japan), Microsoft (U.S.), Dell (U.S.), VIAVI Solutions Inc. (U.S.), QTS Realty Trust, Inc. (U.S.), Inspur (China), Western Digital Corporation (U.S.), Schneider Electric (France), and Broadcom (U.S.) among many others.
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Market Opportunities
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Hyperscale Data Center Market Definition
The hyperscale data centers manage the functioning of large scale physical and virtual data servers at a given point of time. The hyperscale data center provide a unified and computational architecture to store and support the cloud technology. The hyperscale data center architecture comprises of small servers, popularly known as nodes, that offer storage, networking, and processing. The major feature of hyperscale data centers is that they can easily be integrated with the existing organizational infrastructure.
Hyperscale Data Center Market Dynamics
This section deals with understanding the market drivers, advantages, opportunities, restraints and challenges. All of this is discussed in detail as below:
Drivers
- Growing number of data centers
Due to the growing need for computing and storage to support high-end applications, data centres have recently evolved to be incredibly powerful. The number of business-critical apps is increasing, which has led to a rise in data centre complexity. The role of hyperscale data centers has proven to significantly and positively impact the data center handling and will carve the way for market growth.
- Increased demand for higher productivity
Rising volume of organizational and consumer data will widen the scope of growth to a great extent. The rising need for high application performance has directly impacted the expansion of the hyperscale data centre market. The market for hyperscale data centres is also prospering due to the growing need to reduce Capex and Opex. Spending on data centre technology is also rising quickly, which is helping the market expand.
Furthermore, the factors such as rising urbanization, industrialization and growing number of end users globally have further contributed to the overall market expansion during the forecast period. Additionally, evolution of the industrial internet of things (IIoT) and rising adoption of smart automation solutions are anticipated to drive the growth rate of the market.
Opportunities
- Rising deployment of advanced technologies
Growing adoption of advanced technologies such as Web 2.0, e-commerce, social media, big data, cloud computing, online game hosting, and Hadoop will positively influence the market growth rate. The need for hyperscale data centre installations is anticipated to rise as a result of the need for the addition of intelligent and advanced data centre technologies to meet the expanding demands for data centre performance.
- Increasing internet adoption
Growing access to high speed internet and improving internet infrastructure in the developing economies will yet again propel the market growth rate. Organizations can add resources to their infrastructure for increased performance, capacity, and throughput, allowing high availability, thanks to the hyperscale data centre design. The need for hyperscale data centres is expanding as a result of these requirements brought on by an increase in complexity. Penetration of 4G and 5G internet services will widen the scope of growth and expansion globally.
Restraints/Challenges
- High costs and investment
High deployment and maintenance costs of the technology will impede the growth rate. Also, rising overhead costs will narrow down the scope of growth. The government's lack of standardization and regulations and power consumption and storage problem for hyperscale data centers will yet again derail the market growth rate.
- Lack of technical expertise
Dearth of expert knowledge and technical expertise especially in the developed and developing economies and lack of skilled professionals and awareness among management level individuals will create hurdles for the market in regards to the smooth growth in the market value. Further, lack of skilled professionals in combination with low experience quotient will yet again hamper the market growth rate.
This hyperscale data center market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the hyperscale data center market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
COVID-19 Impact on Hyperscale Data Center Market
The COVID-19 pandemic aided the hyperscale data center market owing to the growing penetration of internet and online viewing services. Entertainment and media sector witnessed a good growth during the lockdown that subsequently resulted in the expansion of this market. The extensive application of consumer electronic devices such as smartphones, laptops, computers, iPads, tablets and others also translated into growth for the hyperscale data center market. The hyperscale data center also aided the computational capacity, providing uninterrupted content delivery on the online platforms.
Hyperscale Data Center Market Scope
The hyperscale data center market is segmented on the basis of infrastructure, component, data center size, application and end user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Infrastructure
- IT Infrastructure
- Server
- Storage
- Network
- Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches & Switchgears
- PDUs
- Other Electrical Infrastructure
- Mechanical Infrastructure
- Cooling Systems
- CRAC & CRAH Units
- Chiller Units
- Cooling Towers, Condensers & Dry Coolers
- Economizers & Evaporative Coolers
- Other Cooling Units
- Racks
- Other Mechanical Infrastructure
- General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Building & Engineering Design
- Physical Security
- DCIM/BMS
Component
- Solutions
- Server
- Storage
- Networking
- Software
- Services
- Consulting
- Installation and deployment
- Maintenance and support
Data Center Size
- Small and Medium-Sized Data Centers
- Large Data Centers
Application
- Banking, Financial Services, and Insurance
- IT and Telecom
- Research and Academics
- Government and Defense
- Retail
- Manufacturing
- Healthcare
- Others
End User
- Cloud Providers
- Colocation Providers
- Enterprises
Hyperscale Data Center Market Regional Analysis
The hyperscale data center market is analyzed and market size insights and trends are provided by country, infrastructure, component, data center size, application and end user as referenced above.
The countries covered in the hyperscale data center market report are U.S., Canada and Mexico in North America, Brazil, Argentina and Rest of South America as part of South America, Germany, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA).
North America dominates the hyperscale data center market due to the increased investment on futuristic technologies and growing number of low cost operations in the region. Prevalence of advanced infrastructure in in the region is another important factor determining the dominance of this region.
Asia-Pacific region is showing a promising potential and is set to grow with the highest growth rate during the forecast period. This is because of the rising number of data centers in the region, expanding IT infrastructure and growing presence of major players in the region.
The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the 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, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Hyperscale Data Center Market Share
The hyperscale data center market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to hyperscale data center market.
Hyperscale Data Center Market Leaders Operating in the Market Are:
- Intel Corporation (U.S.)
- Cisco Systems Inc. (U.S.)
- Hewlett Packard Enterprise Development LP (U.S.)
- Telefonaktiebolaget LM Ericsson (Sweden)
- Marvell (U.S.)
- IBM (U.S.)
- NVIDIA Corporation (U.S.)
- Amazon Web Services, Inc. (U.S.)
- Equinix, Inc. (U.S.)
- Apple Inc. (U.S.)
- NTT Communications Corporation (Japan)
- Microsoft (U.S.)
- Dell (U.S.)
- VIAVI Solutions Inc. (U.S.)
- QTS Realty Trust, Inc. (U.S.)
- Inspur (China)
- Western Digital Corporation (U.S.)
- Schneider Electric (France)
- Broadcom (U.S.)
Latest Developments in Hyperscale Data Center Market
- A storage-as-a-service solution is being developed by IBM, European cloud provider OVHcloud, and data management company Atempo Group for data centres across Europe. In the following months, there are larger plans to roll out the service globally. The service will be built on IBM's 3592 enterprise tape technologies and make use of Atempo's Miria platform, and it will be hosted and run by OVHcloud through data centres in France.
- July 2020: The construction of a sizable data centre campus in Utah has already begun, and the data centre startup Novva has received a US$1 billion investment and support from the CIM Group.
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