How Has the Data Center Transformation Market Size Evolved in Recent Years?
The data center transformation market has seen considerable growth due to a variety of factors.
• In recent times, the market size of data center transformation has seen significant growth. This is expected to continue, with projections suggesting the market will expand from $12.05 billion in 2024 to $13.09 billion in 2025, boasting a compound annual growth rate (CAGR) of 8.6%.
This growth throughout the historical period is largely due to factors such as an increase in data center traffic, a surge in the demand for cloud computing services, the uptake of digital enterprise solutions like ERP and analytics, investments in leading-edge data center technology, and the growing requirement for data center modernization.
What are the Market Size and Expected Growth Rates for the Data Center Transformation Market?
The data center transformation market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of data center transformation is projected to experience swift expansion in the upcoming years. The value is predicted to augment to $19.44 billion by 2029, with a compound annual growth rate (CAGR) of 10.4%.
The upswing during the forecast period is likely due to the adoption of 5G technology, the rising demand for software-driven data centers, the proliferation of cloud-based services and data centers, supportive government guidelines for data center upgradation, and growing implementation of innovative technologies in data centers. The forecast period will also witness significant trends such as the utilization of advanced solutions for data center transformation, focus on sustainability through energy-saving solutions, launch of ground-breaking products, and aggressive marketing strategies to boost brand awareness.
Which Key Drivers Are Propelling The Data Center Transformation Market's Growth?
Rapid and voluminous data creation is slated to drive the expansion of the data center transformation market. The process of data production, which is gaining momentum due to the widespread use of digital elements including smartphones, IoT devices, social media platforms, and digital transactions, involves creating data from diverse sources and interactions. Infrastructure and tools for efficient management and processing of the surging volumes of data are provided by data center transformation. For example, a report by Sky's The Limit (STL), a US-based optical and digital solutions company, indicated in December 2022 that approximately 79 zettabytes of data was created globally in 2021 . It is projected that by 2025, the volume of data generated would hit 150 zettabytes, a figure that stands at twice the estimated data generation for 2022. Thus, the mounting volume and pace of data creation are pivotal factors contributing to the growth of the data center transformation market.
What Are The Key Segments Within The Global Data Center Transformation Market?
The data center transformation market covered in this report is segmented –
1) By Service: Consolidation Services, Optimization Services, Automation Services, Infrastructure Management Services
2) By Level Of Data Center: Tier 1, Tier 2, Tier 3, Tier 4
3) By End-User: Information Technology And telecommunications, Banking Financial Services And Insurance (BFSI), Healthcare, Energy, Manufacturing, Government, Other End-Users
Subsegments:
1) By Consolidation Services: Server Consolidation, Storage Consolidation, Network Consolidation, Data Center Migration And Integration
2) By Optimization Services: Energy Efficiency Optimization, Cost Optimization, Performance Optimization, Resource Utilization Optimization
3) By Automation Services: Cloud Automation, Network Automation, Infrastructure Automation, Security Automation
4) By Infrastructure Management Services: Data Center Monitoring And Management, Virtualization Management, Disaster Recovery And Backup Management, Compliance And Risk Management
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What Trends Are Reshaping The Future Of The Data Center Transformation Market?
Leading firms in the data center transformation sector are creating fresh technologies like data center suites to enhance their earnings in the market. A data center suite is an exclusive and confined area within a data center facility designed to cater to a customer's or tenant's unique requirements. For example, in September 2023, a new suite of solutions known as the Honeywell data center suite was introduced by Honeywell International Inc., a technology company based in the US. This suite was constructed to help data center managers and proprietors enhance uptime, worker productivity, the health of critical assets, and operating expenses, while also providing in-depth understanding of sustainability key performance indicators (KPIs). Moreover, this suite offers proactive observation, management of crucial infrastructure, condition-based maintenance plans, and wide-ranging analytics to amplify efficiency and curtail costs in data center operations.
Who Are the Key Players In The Data Center Transformation Market?
Major companies operating in the data center transformation market are:
• Microsoft Corporation
• NTT Communications Corporation
• Dell Inc.
• Amazon Web Services (AWS)
• Accenture plc
• International Business Machines Corporation
• Cisco Systems Inc.
• Schneider Electric SE
• ABB Ltd.
• Google Cloud
• Eaton Corporation plc
• Cognizant
• Emerson Network Power Inc.
• Hindustan Computers Limited Technologies
• Atos
• Wipro Ltd.
• Equinix Inc.
• NetApp Inc.
• Digital Realty
• Citrix Systems Inc.
• HDR Inc.
• Cloud Software Group
• Gensler
• CyrusOne
• Corgan
• Acronis
What Are The Regional Insights Into The Data Center Transformation Market?
North America was the largest region in the data center transformation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center transformation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
