Why data center?
To protect the company’s most confidential assets.
Data centers provide a range of information on information technology services such as email, data storage and management, web storage, and application hosting. Basically, a data center is a facility that manages all the IT operations of an organization. All the applications, networks, websites, and services are run on the servers located in data server farm. The data center looks after the high accessibility services, network issues, and network security, if they become captious, because someone may hack all the confidential data dwelling on servers.
The global data center market was valued at USD 43 billion in 2017 and is projected to reach USD 90 billion by 2023, expanding at a compound annual growth rate (CAGR) of approximately 10% during the forecast period. There are millions of data systems across the globe and the number is estimated to go beyond 8 million in 2018.
Some of the Major Driving Forces to the Market Growth:
The data center market is driven by factors such as the rapid growth of IT services, cost benefits, increasing cloud & collocation services, and better economies of scale. The conception of a huge collection of data with increasing adoption of social networking platforms, richer internet connectivity, availability of smart services, and going digital is creating a huge demand for data storage and also giving emergence to the data center market, globally. Further, strategic events such as mergers and acquisitions of companies in the data center sector are at pace. Moreover, the growth has also been driven by a partnership between the government bodies and enterprises directed towards reducing the carbon footprint.
Cooling and disaster recovery plans is an intense problem faced by the data centers. Data centers require a good budget to ensure business stability and infrastructure optimization. While, data manipulation is a high-level backup technology, requiring network stability, which is hard to access. These factors hinder the growth of the market over the forecast period.
North America to Hold the Largest Market Share
North America accounted for the largest market share, in terms of revenue, owing to the technological developments and considerable application of data centers in different industry verticals. Setting up a large number of start-ups in the region has also boosted the growth of the data center market. The CAGR for North America is estimated to be around 7.50% for the forecast period 2018 to 2023. Moreover, North America is the home to the world largest software companies in the world such as Facebook, Google, Amazon, Microsoft, and Twitter, which is a major reason for the growth of the data center market in the region.
However, in the Asia Pacific region, India is a significantly growing market for data centers. The market was marked to reach an approximate of USD 4.5 billion by the end of 2018. It is anticipated that India would be the second largest market for data centers in Asia Pacific region by 2023 with investments reaching up to USD 7 billion.
This industry is full of innovations and experiments to cater to the needs of the market, making data more secure, portable, manageable and reliable. Services like creating data, managing data; data center scrutiny, site integrity inspections, data center feasibility checking, data center support, and much more are provided and are on the way to innovate, in order to expand the scope of the data center technology. The market is expected to grow at a higher CAGR in North America, and the Asia-Pacific region, calling for immense technological advancements.