Global Hyperscale Data Center Market – Analysis and Forecast (2023-2030)

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 users single largely scalable compute architecture. Data centers are becoming progressively important in the present scenario, where 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 are 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 computing, 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.

Market Segmentation

Insight by Component

On the basis of the component, the market is subdivided into solutions and services. Of both categories, the services market is anticipated to witness higher growth during the forecast period as different enterprises are seeking services to evolve their business applications from stand-alone applications to client-server applications. The solution segment is further segmented into storage, server, networking, and software; whereas the 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 into Small and medium-sized data centers and large data centers. Of both categories, the small and medium-sized data centers market is anticipated to witness 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 the lack of infrastructure in different enterprises are creating the demand for hyperscale data centers 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 the healthcare industry.

Industry Dynamics

Growth Drivers

The primary factor aiding the growth of the hyperscale data center market includes a growing need for high application performance. Business organizations are evolving their business applications from stand-alone applications to client-server applications. They are further developing their applications into distributed applications and ultimately to cloud-based elastic applications. Also, business organizations are evolving application performance management to follow this trend. The implementation of hyperscale data centers 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.

Market Growth: The hyperscale data center market has been experiencing rapid growth in recent years due to the increasing demand for cloud services, digital transformation, and the proliferation of data-intensive applications. The rise of technologies such as the Internet of Things (IoT), edge computing, and 5G networks has further fueled the need for hyperscale data centers to process and store vast amounts of data closer to end users.

Technology also helps organizations increase the sales and revenue of their firm. The availability and performance of a large number of applications have a significant impact on the business performance particularly in situations where the business is trying to expand its 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 the 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 centers. 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 amounts of data that will help in providing easy access to the data and computations on the data.

Challenges

The hyperscale data center market faces challenges related to energy consumption, environmental impact, and sustainability. The massive power requirements of these facilities raise concerns about carbon footprint and energy efficiency. Consequently, there is a growing emphasis on renewable energy sources, innovative cooling technologies, and data center infrastructure management (DCIM) solutions to address these challenges.

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 the healthcare sector, and high awareness among enterprises regarding the benefits of the technology.

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

Competitive Insight

Some of the key players 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.