Global Data Center Services Market - Segmented by Service (Infrastructure, Cloud and Hosting, Networks, Consulting, Virtualization), Data-center (Tier 1, Tier 2, Tier 3, Tier 4), Deployment Mode (On-Premise, Cloud), End-user Vertical (BFSI, Healthcare, Retail, Manufacturing, IT & Telecom), and Region - Growth, Trends, and Forecast (2018 - 2023)
The data center services market is projected to grow at a CAGR of 13.69% over the forecast period (2018 - 2023). The report is segmented on the basis of service type, including infrastructure, cloud & hosting, networks, consulting, virtualization, and others, on the basis of data center type, including tier 1, tier 2, tier 3, and tier 4, on the basis of deployment mode, including on-premise and cloud, and on the basis of end-user verticals, including BFSI, healthcare, retail, manufacturing, IT & telecom, and others. The regions considered in the report include North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. The study also emphasizes the benefits of evidence management in accordance with diverse industries and future prospect of the same.
Data center services are offered in the form of supporting components for the smooth functioning of data storage and management. Data centers are the combination of hardware and software, wherein regular maintenance and service are required for the uninterrupted flow of data management. The various services can be offered as a package or separately, including installation & maintenance, archive & backup, managed load balancing, outsourcing, backing-up power system, and power distribution. The increasing investment in data centers across the globe is expected to have a positive impact on the market growth over the forecast period. Furthermore, the demand for quality management in infrastructure and new technological innovations in the field of data storage and transfer is likely to propel the data center services market growth. In February 2018, Oracle announced high investment in data center wherein the company is planning to set up approximately 12 centers around the globe, including Japan, India, and China.
Increase Spending on Data Center Technology
The emerging cloud technology in data centers is one of the key factors driving the demand for data center systems & technology, thereby, fueling the market growth. As of 2017, the spending on public cloud-based data centers had increased by 35% in comparison to the last year. Furthermore, there is an increase in the number of people connected through cloud servers due to enhanced data security and storage function, this is expected to propel the market growth. In January 2018, Apple announced the boost in their investment in data centers by USD 10 billion over the next five years. This is projected to boost the global usage of data centers, thereby, propelling the market growth over the next six years.
Tier 4 Data Center Type to Have the Highest Share
Tier 4 data center type is estimated to have the highest market share, owing to its high availability as compared to the others, such as tier 1, 2, and 3. This type of data center is widely utilized and integrated in enterprise level companies. In addition, this category offers to be fully superfluous in terms of cooling, network, and electric circuits, therefore, it is expected to have the highest market share over the forecast period.
Asia-Pacific to Witness the Highest Growth
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. IT industry dominates the market as the largest private sector employer in the country where data centers are widely used, thereby, propelling the market growth. Furthermore, there are various organizations, particularly in BFSI industry, which are not ready to invest in data centers based out of the country owing to stringent government regulations over security. This has led to the setup of data centers locally, consequently, compelling companies to invest in the country. The aforementioned factors are expected to have a positive impact on the market growth in the region over the forecast period.
Key Developments in the Market
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