Green Data Center Market Size By Component (Solution [Cooling, Networking, Power, Management Software], Service [Installation & Integration, Consulting, Managed]), By Application (Colocation, BFSI, Energy, Government, Healthcare, Manufacturing, IT & Telecom), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2019 - 2026
Green Data Center Market will exceed USD 35 billion by 2026. Growth of mega data centers and trend of collocation will drive the market growth over the forecast timespan.
Some major findings of the green data center market report include:
- The rapid rise of cloud computing and increasing demand for storage spaces will result in rapid growth in the construction of mega data centers. Enterprises including Google and Amazon are implementing hyperscale and mega data centers for storing data in new markets such as India and Mexico.
- In February 2018, Ascendas-Singbridge Group, an office space solutions provider announced to invest USD 1 billion to establish large-scale data centers in India to cater to the requirements of hyper-scale cloud providers
- Moreover, rising data traffic and the need for efficient systems for managing massive data are encouraging companies to transform their conventional systems with digital & modernized solutions
- Key players operating in the market are Huawei Technologies Co. Ltd., Vertiv Co., Schneider Electric SE, Hewlett-Packard, Microsoft, Verne Global, and IBM Corporation
- Players are focusing on developing energy-efficient products and solutions to provide customers better products and sustain in the highly competitive market
The growing adoption of colocation services among small & medium-sized enterprises is accelerating the industry growth. These services are being widely adopted by organizations looking to reduce expenses associated with maintaining and construction of data centers. Colocation facilities provide power, cooling, storage, server security, and networking equipment. The need to reduce recurring costs and opex is compelling major companies to opt for a green data center model.
The management software service segment in the green data center market is anticipated to witness high growth in the coming years. These services are important for the efficient functioning of data centers to ensure maximum throughput. The increasing demand for reducing operational costs and providing high-quality IT infrastructure speedily to support new business initiatives has led to the increased adoption of management software. Enterprises are hiring several managed and professional service providers to optimize the IT infrastructure and manage systems and data centers to achieve the desired business objectives and efficiencies.
IT & telecom applications will witness high demand owing to the rising move toward digitization for conducting everyday activities such as payments and shopping. The resultant amount of data generated is a major contributor to the overall market growth. Energy-efficient solutions allow companies to lower power consumption and operating costs. The colocation segment in the green data center market is expected to witness rapid growth over the forecast time.
The Asia Pacific green data center market will witness a high demand over the coming years owing to the proliferation and the growing adoption of technologies, such as cloud, IoT, and AI, in countries including India, China, Japan, and Singapore. Technologies, such as machine learning and IoT, incorporated in the systems by manufacturing firms will lead to a rise in the amount of data generated, mounting the pressure of constructing sophisticated data center infrastructure. In addition, government initiatives, such as Digital India and Smart Cities, are further boosting the adoption of cloud computing and IoT in India. The rise in the number of manufacturing companies in China and India is fueling industry growth.