Status : Upcoming Report Code : VRICT5145 Industry : ICT & Media Available Format :

Global Hyperscale Data Center Market – Analysis and Forecast (2019-2024)

Industry Insights by Component (Solutions (Storage, Server, Networking, Software), Services (Installation and Deployment, Maintenance and Support, Consulting)), by Data Center Size (Small and Medium-Sized Data Centers, Large Data Centers), by End User (Cloud Providers, Enterprises, Colocation Providers), by Industry (BFSI, IT and Telecom, Research and Academics, Government and Defense, Manufacturing, Media and Entertainment, Healthcare, Retail, Others), by Geography (U.S., Canada, Mexico, Germany, U.K., France, Italy, Spain, Netherlands, Japan, China, India, Australia, South Korea, Brazil, U.A.E, South Africa, Saudi Arabia)

Industry Overview

The global hyperscale data center market is growing at a significant rate, as it provides the users single largely scalable compute architecture. The data centers are becoming progressively important in the present scenario, where the organizations store and process large consumer information and commercial data. The hyperscale data center thus enables the use of enterprise mobile applications and are playing a crucial role in contemporary business models. The large hyperscale data centers such as those that are administered by Google, Facebook and Amazon have attained greater popularity and is considered to be very energy efficient by the users.

Hyperscale data centers have architectures that are specifically designed to provide single, massively scalable compute architecture. The architecture is typically made up of small, individual servers that are known as nodes. These nodes provide compute, storage and networking facility to the system. They are then clustered together and managed as if they were a single entity. Nodes are typically deployed from inexpensive, off the shelf servers.

Hyperscale Data Center Market Highlights

Market Segmentation

Insight by Component

On the basis of the component, the market is subdivided solutions and services. Of both the categories, the services market is anticipated to witness the higher growth during the forecast period as different enterprises are seeking services to evolve their business applications from stand-alone applications to the client-server applications. The solution segment is further segmented into storage, server, networking, and software; whereas services segment is categorized into installation and deployment, maintenance and support, and consulting.

Insight by Data Center Size

Based on data center size, the market is subdivided Small and medium-sized data centers, and large data centers. Of both the categories, small and medium-sized data centers market is anticipated to witness the higher growth during the forecast period as the industry players are focusing on small and medium-size companies providing the infrastructure for data centers.

Insight by End User

The different end users in the market include cloud providers, enterprises, and colocation providers. Of all, cloud providers are anticipated to observe the fastest growth in the market size during the forecast period. The increasing popularity of cloud services for data storage and lack of infrastructure in the different enterprises are creating the demand for hyperscale data center among cloud providers, globally.

Insight by Industry

Based on industry, the market is segmented into BFSI, IT and telecom, research and academics, government and defense, manufacturing, media and entertainment, healthcare, retail, and others. The healthcare and lifesciences segment is anticipated to witness significant growth in demand in the coming years due to the increasing adoption of CDSS solutions, EHR and different other healthcare data analysis and management platforms, leading to the demand for robust infrastructure for data storage and networking in healthcare industry.

Industry Dynamics

Growth Drivers

The primary factor aiding towards the growth of the hyperscale data center market includes a growing need for high application performance. The business organizations are evolving their business applications from stand-alone applications to the client-server applications. They are further developing their applications into distributed applications and ultimately to the cloud-based elastic applications. Also, business organizations are evolving application performance management follow this trend. The implementation of hyperscale data center along with application performance management by the business enterprise helps in managing the performance of applications in order to determine the proper functioning process of applications.

The technology also helps the organizations to increase the sales and revenue of their firm. The availability and performance of large number of applications have a significant impact on the business performance particularly in the situations where the business is trying to expand their market base and global presence. The hyperscale data center facilitates the organization to achieve these goals and provides business continuity with reduced time, enhanced customer satisfaction and improved end-user experience.

Opportunity

The increase in data center traffic is expected to create greater opportunities for hyperscale data center market to grow globally. The rapidly increasing data traffic is increasing the data storage demand that is resulting in the increasing adoption of hyperscale data center. In the present scenario, many business organizations are sourcing their computing data to the cloud-based infrastructure. As a result, the hyperscale data centers and associated cloud services are implemented by the service providers and several other business enterprises to store huge amount of data that will help in providing easy access to the data and computations on the data.

Challenges

However, the high cost of infrastructure and the challenges associated with the data centers are hindering the growth of the market to some extent.

Geographic Overview

Geographically, North America is the largest hyperscale data center market. The demand for this technology is increasing in this region due to robust infrastructure, high demand from BFSI, IT and Telecom and healthcare sector, high awareness among the enterprises regarding the benefits of the technology.

Asia-Pacific is expected to be the fastest growing region for hyperscale data center market. The growth of hyperscale data center market in the region is expected to take place due to increasing demand for cloud service from small, medium and large enterprises. The market is also driven by increased adoption of hyperscale data center architecture and technologies by several industries. Major factors contributing towards the growth of hyperscale data center market in the region are the rapid development in the banking sector of the major economies such as China, India, and Japan.

Competitive Insight

Some of the key players in the operating in the hyperscale data center industry are Dell Inc., Hewlett Packard Enterprise Company, International Business Machines Corporation, Huawei Technologies Co., Ltd., Ericsson, Cisco Systems, Inc., Nvidia Corporation, Lenovo Group Limited, Cavium, Inc., Quanta Computer Inc., Broadcom Ltd. and Intel Corporation.

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Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle