IT is now the backbone of every business, ensuring business continuity and competition, and it is prompting enterprises worldwide to invest in data centers. Technavio’s market research analysts predict the global data center market to surpass revenues over USD 14 billion until 2019.
Digitalization is enabling many organizations to adopt cloud-based services for their businesses. By 2019, it is expected that 87% of SMEs will operate their businesses through the cloud by adopting the offerings from the leading cloud-based service providers in this market. Cloud computing requires higher computational power but allows for flexible, scalable, and efficient business operations. It is one of the major reasons for the construction of mega data center facilities globally.
Research scope and segmentation of the mega data center market
In this report, Technavio covers the present scenario and growth prospects of the global data center market for 2015-2019. The report considers the following criteria to be a mega data center:
Data center type Square feet area Power consumed
Mega >200,000 sq. ft. >10 mega watts
Large 50,000 - 200,000 sq. ft. 1-10 mega watts
Small <50,000 sq. ft. <1 mega watts
To calculate the market size, analysts have considered revenue generated from the CAPEX of the following IT equipment segments:
For servers, the revenue generated by the adoption of tower, rack, blade, mission critical, and high-density servers.
For storages, the revenue generated by the adoption of storage area networks (SANs), network-attached storage (NAS), and direct-attached storage (DAS), with storage drives such as hard disk drives (HDDs), solid-state drives (SSDs), and flash storages.
For networks, the revenue generated from the adoption of Ethernet switches, application delivery controllers (ADCs), and WAN optimization.
Power management systems:
The revenue generated from the adoption of power management systems and their installation, which include the CAPEX used for uninterruptible power supply (UPS), generators, rack power distribution units (PDUs), transfer switches, and switchgear.
The revenue generated from the adoption of cooling equipment, which includes the installation of the room and rack/row-based cooling solutions.
The revenue generated from the construction of a data center includes the costs associated with building a well-secured facility with installed electrical and mechanical equipment. It also includes costs associated with the setup, flooring, sprinklers, piping, belts, filters, branch circuits, cabling equipment, external lighting, panels, and utility transformers and construction of internal and external walls, windows, doors, equipment installation and disposal fittings. Also, it includes the initial CAPEX used for design, architecture, and site preparation.
The revenue generated from the adoption of rack units: less than 36U, 42U, 45U, 47U, 48U, 51U, and others.
The revenue generated from the installation of physical security components such as video surveillance, biometrics, intrusion detection systems, mechanical access control devices, turnstiles, and visitor management.
The revenue generated from the purchase of software to enable network security, server and storage security, data protection, and application security.
The revenue generated from the purchase of data center infrastructure management (DCIM) software for the entire facility and software for monitoring and managing equipment.
Geographical segmentation of the global data center market
The US is the leading country for mega data center operations, followed by Europe and Asia. During the forecast period, the revenue of the global mega data center market will grow on account of growing consolidation of existing facilities to mega data centers.
Analysis of top companies of the mega data center market
Other prominent vendors in this market include Amazon Web Service, Digital Realty, DuPont Fabros Technology, Equinix, IBM, QTS, and Verizon.
Key questions answered in the report
What are the key factors driving the global mega data center market?
What are the key market trends impacting the growth of the global mega data center market?
What are the various opportunities and threats faced by the vendors in the global mega data center market?
Trending factors influencing the market shares for EMEA, APAC, and Americas?
Key outcome of the five forces analysis on the global mega data center market?
Growth forecast of the global mega data center market until 2019?
Technavio also offers customization on reports based on specific client requirement.
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Technavio Announces the Publication of its Research Report – Global Data Center Mega Market 2015-2019 Technavio recognizes the following companies as the key players in the Global Data Center Mega Market: Apple, Facebook, Global Switch, Google, Microsoft and Switch Other Prominent Vendors in the market are: Amazon Web Service, Digital Realty, DuPont Fabros Technology, Equinix, IBM, QTS, and Verizon. Commenting on the report, an analyst from Technavio’s team said: “The infrastructure in the traditional data center environments is defined by hardware and devices. An SDDC refers to a data center where the infrastructure is delivered as a service through virtualization of the physical infrastructure, i.e., the hardware infrastructure is managed through intelligent software systems. An SDDC supports both legacy applications and cloud computing services and improves the efficiency, lowers costs, provides applications in minutes, offers higher availability and better security, and creates an opportunity for the delivery of workloads through the cloud.” According to the report, there are several benefits for an enterprise operating through a colocation facility instead of building its own data center. Data center colocation is a facility to rent computing servers, storage, and network. This enables minimal utilization of power and bandwidth and enhances the security of the enterprise IT equipment. Further, the report states that the market growth is still subjected to the huge capital investment, hence, hindering the market growth.
Apple, Facebook, Global Switch, Google, Microsoft, Switch, Amazon Web Service, Digital Realty, DuPont Fabros Technology, Equinix, IBM, QTS, Verizon.