The global data centre market is in double-digit growth territory and is set to reach US$207.02 billion by the end of 2021 as cloud adoption fuels demand and investments speed up on all continents.
According to Allied Market Research data, the sector is witnessing a CAGR of 10.5% from 2021 to 2030, having generated $187.35 billion in 2020.
By the end of the decade, data centre revenues are forecasted to reach $517.17 billion.
Analysts blame the market’s growth on the rise in penetration of high-end cloud computing in enterprises and increase in investment in data centre applications.
However, a surge in concerns related to data privacy paired with growing demand for managed services restrain the growth to some extent.
This can be countered with an increase in penetration of Internet of Things and hybrid and multi-cloud architecture solutions are anticipated to pave the way for lucrative opportunities in the industry.
According to analysts, the surge in demand for cloud computing network solutions, during the pandemic, impacted the global data centre market negatively.
Nevertheless, increase in dependency on data centre across healthcare, government, and BFSI sectors has driven the market positively, thereby providing the market with a mixed impact.
Kanhaiya Kathoke, Research Analyst, ICT at Allied Market Research, said: “The global data centre market share is expected to witness a considerable growth, owing to increase in demand for cloud-based solution, especially in emerging economies such as Asia-Pacific and LAMEA.”
Based on component, the solution segment dominated with the largest share in 2020, holding more than three-fourths of the global data centre market.
The services segment, on the other hand, is expected to cite the fastest CAGR of 12.4% throughout the forecast period.
Based on solution, the hyperscale segment held the highest market share in terms of revenue, contributing to more than two-fifths of the global data centre market.
However, the edge segment is estimated to exhibit the fastest CAGR of 13.1% during the forecast period.
By region, the market across North America dominated the market with major share in 2020, accounting for nearly two-fifths of the global data centre market.
At the same time, the market across Asia-Pacific is expected to witness the fastest CAGR of 14.7% from 2021 to 2030.