Data Center Market Projected to Experience Major Revenue Boost during the Period between 2018-2028

Published: Thu Dec 13 2018

As data centers shift toward supporting more digital strategies, their business will depend on capabilities of the IT ecosystem to underpin new initiatives. Requirement for more decentralized approach, to address need of digital business infrastructure, has been recognized by organizations that have embarked on the digital business journey. With rapid rise in velocity and volume of data, inefficiency increases with regard to streaming information to the data center for processing.

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Ubiquity of technologies including broadband and cloud has driven demand for higher IT capacity for enhancing existing capacity of data centers. Rise of third-platform technologies, coupled with the developments in the IoT and cloud computing, has led the requirement for enhanced level of computational data and networking sources. This has resulted in scaling up of existing infrastructure to make it more flexible and modular. Transforming current hardware-defined infrastructure to one that is software-defined has triggered expansion of the hyperscale data centers. These data centers provide superior efficiency, and will continue to record an impressive rise in the near future.

Current and future prospects of the data center market are likely to remain significantly influenced by dynamic economic scenario across developed and developing markets, along with several macroeconomic aspects. Progressive technological advancements in the IT industry and fluctuating economy result in demand for solutions with high computational power and flexibility in the data center industry, leading to outsourcing activities as a consequence.

Data Center Market: Third-Party Providers to Observe an Upward Trend

With rising adoption of cloud technologies for supporting the internet economy, coupled with the acceleration of digital content-driven consumption, an uptake of the third-party data centers has been observed since the recent past. The trend falls in line with the growth of the cloud-managed service sector. As clouds are soaring in prominent markets, enterprises continue to introduce new software as a service (SaaS), and platform-as-a-service (PaaS), meanwhile focusing on reducing the cost and dependence on Infrastructure as a service (IaaS). This will further impact growth prospects of the data center market.

With corporations increasingly taking efforts to make innovations with new product launches, marketing initiatives, and business models, demand for a flexible infrastructure is on the rise. Most organizations are shifting their focus from managing their own infrastructures toward leveraging a service provider data center for shared and dedicated cloud offerings. This is further expected to result in the gradual retirement and consolidation of the existing data centers.

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Data Center Market: Changes in Operational Processes and IT Staff Shortage Confining Growth Prospects

Transformations in technology and data center network have meant that reorganizing and updating operational processes apropos of software and hardware has become imperative. Changes in operational processes have necessitated overall upgradation of the management process in organizations. This further entails challenges such as substantial implementation time, which in turn results in project delays against the backdrop of process re-engineering.

Proliferation of digitization and technological advancements in the data center market have propelled demand for skilled IT professionals for the management and handling of software-defined and connected services. However, shortage of IT staff in lucrative areas such as crisis management, operational efficiency, IoT and software-defined networking, Big Data, cloud computing, and mobility has led to varying uncertainties in solutions, This has further increased the probability of system errors or functional failures, thereby confining growth of the data center market.

Data Center Market: International Regulations on Data Sovereignty Influencing Location Decisions of Stakeholders

Rapid evolutions in the international regulations on data sovereignty, which mandates data to be housed within the country where it is assessed, have been impacting data center location decisions of stakeholders. Domestic data centers aid data protection, while necessitating new investment, thereby enabling prominent data center operators and developers to rapidly expand their international reach. This further aids these operators to meet evolving demand, while helping the users to remain compliant with regulations.

Climate change is another factor affecting location strategies, as data center users evaluate their performance based on financial, environmental, and socially responsible perspectives. This, coupled with efforts of providers to curtail utility consumption through implementation of less resource-intensive powering and cooling strategies, will continue to impact growth of the data center market. Access to water and renewable energy sources have therefore become more important considerations for stakeholders in the data center market.

Table of Content:

Chapter 1 Executive Summary
1.1 Opportunity Analysis
1.2 Mega Trends in Datacenter Market
1.3 Market White Spaces Analysis and Wheel of Fortune Opportunity Analysis

Chapter 2 Global Datacenter Market Overview
2.1 Introduction
2.2 Market Definition
2.3 Market Taxonomy
2.4 Scope of the report
2.5 Market Dynamics
2.5.1 Drivers
2.5.2 Restraints
2.5.3 Trends
2.5.4 Opportunity
2.6 Macroeconomic Factors Analysis
2.7 Value Chain Analysis
2.8 PEST Analysis
2.9 Porter’s Five Forces Analysis
2.10 Forecast Factors Analysis
2.11 Datacenters Footprint in Key Countries, 2017
2.12 Global Digital Technology Penetration, 2017

Chapter 3 Global Datacenter Market Analysis
3.1 Global Market Outlook
3.1.1 Market Forecast and Analysis
3.1.2 Regional Market Assessment


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