Data Center Equipment Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Equipment Type [Servers, Storage Devices, Cooling Equipment, Power Distribution Units (PDUs), Racks, Enclos

The data center equipment market size was valued at US$ 242.74 billion in 2024 and is expected to reach US$ 669.29 billion by 2031; it is estimated to register a CAGR of 15.7% during 2025-2031.

The data center equipment market is segmented into five major regions-North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the data center equipment market in 2024. Europe is the second-largest contributor to the global data center equipment market, followed by Asia Pacific.

The data center equipment market in APAC is segmented into China, India, Japan, Australia, South Korea, and the Rest of APAC. According to the Asia Cloud Computing Association in July 2024, data centers are growing quickly across APAC, with projections showing strong market growth. This increase is driven by factors such as the rise in internet usage, the growth of e-commerce, digital transformation efforts, and the use of advanced technologies such as AI and cloud computing. Moreover, according to the H2 2024 Asia Pacific Data Centre Market Update report by Cushman & Wakefield, Over US$ 116 billion will be needed to build out the existing colocation data center pipeline across Asia Pacific in the coming five to seven years as demand for the sector grows. This significant investment will drive the Asia Pacific data center equipment market by increasing the demand for essential infrastructure, such as servers, cooling systems, power management tools, and networking equipment. As more data centers are built and expanded to meet the rising demand for digital services, cloud computing, and AI technologies, the need for advanced, energy-efficient equipment will grow, creating new opportunities for market growth.

The data center industry in the Asia Pacific has seen considerable growth in both advanced and developing economies, driven by the increasing willingness of companies to invest in new data storage and deployment infrastructure. For instance, according to the Cushman & Wakefield report, India's data center capacity across the top seven cities currently stands at 977 MW. The country's data center capacity is expected to grow significantly, with an additional 1.03 GW under construction by 2028. Moreover, plans for further expansion of 1.29 GW would bring India's total projected data center capacity to 3.29 GW by 2028.

On the basis of tier type, the market is segmented into tier 1, tier 2, tier 3 and tier 4. The IT and telecom segment held the largest data center equipment market share. The tier 3 segment is the largest contributor to the data center equipment market. Tier 3 data centers utilized by large business enterprises offer features such as 99.982% uptime and N+1 fault tolerance, offering a minimum of 72 hours of power outage protection. Also known as concurrently maintainable data centers, these centers do not require any shutdown for equipment maintenance and replacement. Tier 3 incorporates the features of both Tier 1 and Tier 2 data centers. It also requires power and cooling equipment during the maintenance process without affecting the IT processing of the organization. Demand for Tier 3 facilities is high primarily due to an increase in the demand for flexible data centers. Tier 3 data center allows flexibility to carry out the planned activity of power and cooling systems without disturbing hardware operating in data center space.

ABB Ltd, Legrand SA, Schneider Electric SE, Rittal GmbH & Co KG, Eaton Corp Plc, Dell Technologies Inc, Honeywell International Inc, Vertiv Group Corp., Delta Electronics Inc and Cisco Systems Inc are among the key data center equipment market players that are profiled in this market study.

The overall data center equipment market size has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the data center equipment market size. The process also helps obtain an overview and forecast of the market with respect to all the market segments. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain analytical insights. This process includes industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the data center equipment market.

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