The Data Center Services Market was valued at USD 48.90 billion in 2020 and is expected to reach USD 105.6 billion by 2026, at a CAGR of 13.69% over the forecast period 2021 - 2026. Business leaders are facing an influx of data, and thus, they are under pressure to manage all business-critical data, along with the constant need to outpace their competitors.
Key Highlights
- The emerging cloud technology in data centers is one of the key factors driving the demand for data center systems and technology, thereby, fueling the market growth. Cloud technology is more flexible, because it can be accessed with different devices and it is easy to recover the lost data. At the same time, cloud computing offers high speed, which helps the other businesses to grow.
- The increase in demand for online retail or e-commerce has acted as a catalyst for the data center industry. Customers want more personalized data and for this data center, services are very helpful. They help in storing and analyzing the data.
- On the flip side, concerns relating to data privacy is a major concern nowadays, which is acting as a limitation for this market to grow. As the data are not being hosted locally, there are high chances of leakage of data.
Key Market Trends
Cloud and Hosting is Expected to Capture a Major Share in the Data Center Services Market
- Currently, with fresh data being generated at a fast pace over time, the intelligence from data becomes even harder to capture in a timely manner. New digital landscapes, such as smart cities and intelligent buildings, are offering more data readily available.
- Moreover, public cloud is increasing because of lower costs and low maintenance associated with it. The data can be accessed at any time and on any device. This is helping small- and medium-sized businesses to grow tightly, controlling their costs by paying for the infrastructure only based on their needs.
- Owing to the aforementioned factors, the data center services market is expected to grow during the forecast period.
Asia-Pacific is Expected to Witness the Highest Growth Rate
- India is one of the fastest-growing economies in the world, and it is likely to boost the growth of public cloud-based data centers. The IT industry dominates the Indian market, as the largest private sector employer in the country, where data centers are widely used, thereby, propelling the market growth.
- The Government of India has extended tax holidays to the IT sector for software technology parks of India (STPI) and Special Economic Zones (SEZs). Furthermore, India is providing procedural ease and single window clearance for setting up facilities. The government of India is setting up a USD 745.82 million fund for realizing the potential sectors.
- Moreover, China has also witnessed a rise in its hyper-scale platforms, owing to which providing data center services for Chinese hyper-scale platforms has become necessary.
Competitive Landscape
The global data center service market is fragmented and the competitive rivalry is high. The key players in this market are Fujitsu Ltd, Reliance Group, Capgemini, HCL Technologies Limited, etc. Sustainable competitive advantage can be attained through innovation in this market, owing to the growing need for differentiated products for various applications.
Ventures over the world are progressively hoping to arrange information, store data, and be benefited from cloud specialists. This move, together with the interest to store media and other information, represents gigantic development in the market for cloud benefits.
- April 2019 - Qualcomm launched data center AI inference chip family, 'Cloud AI 100'. The ASIC family of products may come in a variety of form factors and thermal design points for different use cases. This chip is enhanced with sophisticated features of AI to provide good performance for the devices.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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