Data Center Infrastructure Market Introduction

The data center infrastructure market refers to the hardware and software components that are used to support the operations of data centers. A data center is a centralized location that houses computing resources, such as servers, storage devices, and networking equipment, that are used to manage and store large amounts of data. The infrastructure of a data center is critical to its performance, reliability, and security.The data center infrastructure market includes a wide range of products and services, such as server hardware, storage devices, networking equipment, power and cooling systems, and software for managing and automating data center operations. This market is driven by the growing demand for cloud computing, big data analytics, and other data-intensive applications that require high-performance computing resources.The market for data center infrastructure is highly competitive, with a large number of vendors offering a wide range of products and services. Some of the key players in this market include Cisco Systems, Dell EMC, Hewlett Packard Enterprise, IBM, and Microsoft. These companies offer a variety of hardware and software solutions designed to meet the diverse needs of data center operators.The data center infrastructure market is expected to continue growing in the coming years, driven by the increasing adoption of cloud computing and other data-intensive technologies. This growth is expected to be particularly strong in regions such as Asia-Pacific, where demand for data center services is rapidly increasing. As the data center infrastructure market continues to evolve, vendors will need to continue innovating and developing new products and services to meet the changing needs of their customers.

Data Center Infrastructure Market Size

The global data center infrastructure market size was valued at $60.68 billion in 2020 and is expected to reach $112.94 billion by 2026, growing at a CAGR of 9.9% during the forecast period.The growth of the data center infrastructure market is driven by the increasing demand for cloud computing, big data analytics, and other data-intensive applications. As more businesses adopt these technologies, the need for high-performance computing resources and robust data center infrastructure will continue to grow.In addition, the COVID-19 pandemic has accelerated the adoption of cloud computing and other digital technologies, as more people are working remotely and relying on online services for communication and collaboration. This has further fueled the growth of the data center infrastructure market.The Asia-Pacific region is expected to be a key growth driver for the data center infrastructure market, due to the rapid expansion of cloud services and the increasing adoption of digital technologies in countries such as China and India.Overall, the data center infrastructure market is expected to continue growing in the coming years, as businesses and organizations increasingly rely on data-driven technologies to drive innovation, improve efficiency, and stay competitive in an ever-changing marketplace.

Data Center Infrastructure Market Share

The data center infrastructure market is highly competitive, with a large number of vendors offering a wide range of products and services. Some of the key players in this market include Cisco Systems, Dell EMC, Hewlett Packard Enterprise, IBM, and Microsoft, among others.The market share for data center hardware and software vendors in Q2 2021 was as follows:

• Dell EMC: 15.7%
• HPE: 13.6%
• Cisco: 8.6%
• Huawei: 8.2%
• Inspur: 7.0%
• Others: 46.9%

Data Center Infrastructure Market Trends

There are several key trends shaping the data center infrastructure market:

1. Adoption of hybrid cloud: Many organizations are adopting a hybrid cloud model, which involves using a mix of on-premises infrastructure and cloud-based resources. This trend is driving demand for infrastructure that can support hybrid cloud environments and enable seamless integration between on-premises and cloud-based resources.
2. Edge computing: The rise of edge computing, which involves processing data closer to the source of the data rather than in a centralized data center, is driving demand for infrastructure that can support distributed computing environments. This includes edge servers, networking equipment, and software for managing and automating distributed computing environments.
3. Increased focus on sustainability: As data centers consume significant amounts of energy, there is a growing focus on making data center infrastructure more energy-efficient and environmentally sustainable. This includes the use of renewable energy sources, such as solar and wind power, and the development of more efficient cooling systems.
4. Growth of hyperconverged infrastructure: Hyperconverged infrastructure (HCI) is an architecture that combines compute, storage, and networking in a single appliance. HCI is becoming increasingly popular as it offers simplified management, scalability, and cost savings. As a result, vendors are investing in HCI solutions and offering a wider range of products and services in this space.
5. Shift towards software-defined infrastructure: The use of software-defined infrastructure, which involves using software to manage and automate infrastructure resources, is becoming more widespread. This trend is driving demand for software-defined networking, storage, and compute solutions, which offer greater flexibility, scalability, and efficiency.

Overall, these trends are driving innovation and competition in the data center infrastructure market, as vendors strive to develop products and services that can meet the evolving needs of their customers.

Data Center Infrastructure Market Driving Factors

There are several driving factors behind the growth of the data center infrastructure market:

1. Cloud computing: The growing adoption of cloud computing is driving demand for data center infrastructure, as more businesses and organizations rely on cloud-based services to store, manage, and analyze data. As a result, data centers need to support high-performance computing resources and robust infrastructure to meet the needs of cloud-based applications.
2. Big data analytics: The increasing use of big data analytics is also driving demand for data center infrastructure, as organizations require high-performance computing resources and storage capacity to process and store large amounts of data.
3. Internet of Things (IoT): The growing use of IoT devices is generating vast amounts of data that needs to be processed and analyzed in real-time. Data center infrastructure is needed to support the processing and storage of this data.
4. Digital transformation: The ongoing digital transformation of businesses and organizations is driving demand for data center infrastructure, as companies increasingly rely on data-driven technologies to drive innovation, improve efficiency, and stay competitive in an ever-changing marketplace.
5. Work-from-home: The COVID-19 pandemic has led to a significant increase in remote work, which has driven demand for data center infrastructure that can support remote access and collaboration tools.
6. Edge computing: The rise of edge computing is driving demand for data center infrastructure that can support distributed computing environments, as more organizations move computing resources closer to the edge of the network to reduce latency and improve performance.

Overall, these factors are driving the growth of the data center infrastructure market and are expected to continue doing so in the coming years as businesses and organizations increasingly rely on data-driven technologies to achieve their goals.

Data Center Infrastructure Market Regional Analysis

The data center infrastructure market is a global market, with significant demand in various regions around the world. Here's a breakdown of the regional analysis:

1. North America: North America is the largest market for data center infrastructure, driven by the presence of major technology companies and high demand for cloud-based services. The United States is the largest contributor to this market, followed by Canada.
2. Europe: Europe is the second-largest market for data center infrastructure, driven by the presence of major technology companies and increasing demand for cloud-based services. The United Kingdom, Germany, and France are the major contributors to this market.
3. Asia Pacific: Asia Pacific is the fastest-growing market for data center infrastructure, driven by the increasing adoption of cloud-based services, the rise of e-commerce, and the growth of digital transformation initiatives. China, Japan, India, and Australia are the major contributors to this market.
4. Latin America: Latin America is a growing market for data center infrastructure, driven by the increasing adoption of cloud-based services and the growth of digital transformation initiatives. Brazil and Mexico are the major contributors to this market.
5. Middle East and Africa: The Middle East and Africa is a developing market for data center infrastructure, driven by the increasing adoption of cloud-based services and the growth of digital transformation initiatives. The United Arab Emirates and Saudi Arabia are the major contributors to this market.

Overall, the demand for data center infrastructure is strong in all regions, driven by the increasing adoption of cloud-based services, the growth of digital transformation initiatives, and the need for high-performance computing resources.

Data Center Infrastructure Market Forecasts 2030

The data center infrastructure market is expected to grow significantly over the next decade, with a compound annual growth rate (CAGR) of around 7.3% from 2021 to 2030.The increasing demand for high-performance computing, big data, and cloud computing solutions across various industries is expected to be the primary driver of market growth. The growing adoption of artificial intelligence (AI), machine learning (ML), and internet of things (IoT) technologies is also expected to contribute to market growth.In terms of types, the servers segment is expected to hold the largest share of the market, driven by the increasing demand for high-performance computing and storage systems. The storage devices segment is also expected to grow rapidly, driven by the increasing need for large-scale data storage and management solutions.In terms of applications, the IT & Telecom segment is expected to dominate the market, due to the increasing use of data centers for cloud computing, big data, and other high-performance computing applications. The BFSI segment is also expected to grow rapidly, driven by the need for secure and reliable data storage and management solutions.Geographically, North America is expected to hold a significant share of the market, due to the presence of major data center infrastructure providers and the increasing demand for data center services in the region. The Asia Pacific region is also expected to experience significant growth, driven by the increasing adoption of cloud computing and big data technologies in countries such as China, India, and Japan.Overall, the data center infrastructure market is expected to reach a value of around USD 126.9 billion by 2030, up from USD 67.3 billion in 2021.

Data Center Infrastructure Market Key Industry Players

Some of the key industry players in the data center infrastructure market include:

1. Dell Technologies
2. Hewlett Packard Enterprise (HPE)
3. IBM Corporation
4. Cisco Systems Inc.
5. Schneider Electric SE
6. Huawei Technologies Co. Ltd.
7. Fujitsu Limited
8. Lenovo Group Limited
9. Eaton Corporation plc
10. Vertiv Co.