Data Center as a Service Market Overview
Data Center as a Service Market size is forecast to reach $298.5 billion by 2026, estimated to grow at a CAGR of 12.7% during 2021-2026. The increasing use of data storage portable devices in order to retrieve data irrespective of time and location is driving the growth of the data as a service market. Furthermore, the rising demand for colocation facilities and enterprise data storage is highly escalating the growth of the market. Also, the emerging cloud technology and adoption of service models such as IaaS, SaaS and PaaS are tremendously boosting the data center as a service market size during the forecast period 2021-2026. The Data Center as a service Market is driven primarily by the factors such as increasing structured as well as unstructured data in the market due to fast-growing businesses and industries across the globe. The rising growth of advanced technologies such as IoT, AI and many others along with providing increased work productivity across different industries have been acting as major growth factors in the data center market. Moreover, growing investments from various sectors towards infrastructure development of data centers are also booming the market growth of data centers.
Data Center as a Service Market Segment Analysis – By Industry Vertical
BFSI segment held the largest market share in the Data Center as a Service market in 2020 at 20.2%. The rising digitization in the BFSI sector has paved the way for cloud and data center as a service which is also being considered as the backbone of the BFSI sector. As banking and financial sector is being digitally transformed the need for efficient services is rising which is embracing the requirement of data centers. The efficient data center as a service allows the bank to operate effectively, sustain growth, offering innovative services, and further allows to follow regulations and partnerships with start-ups and fintech firms. Therefore, the advances in the BFSI sector further escalates the growth of data center as a service market.
Data Center as a Service Market Segment Analysis – By Application
With the increasing demand of cloud based technology in demanding applications, the cloud service provider is expected to have a major growth during the forecast period in the data center service market at 19.4% CAGR. Rising developments towards data center market have been causing major demands from various industry verticals due to providing highly efficient data management system. Cloud service providers basically help the data centers in hosting data and application through cloud solutions which makes data center applications more flexible and reliable Cloud service providers offer better data management process due to the use of cloud based solutions, and provides use and pay options that saves the data centers to spend extra amounts unlike on premise data storage thus promoting its market growth. Moreover, higher investments towards building advanced technology based data centers are also promoting the market growth of cloud hosted data center.
Data Center as a Service Market Segment Analysis – By Geography
In 2020, North America dominated the Data Center as a Service market with a share of more than 39.5%, followed by Europe and APAC. The rise of connectivity and the cloud in the U.S.and the presence of financial hubs and tech hubs in areas such as of New York and Chicago, Seattle, Portland and among others are penetrating the growth of the market in this region. In addition, the growing demand for data center services and the presence of robust data center facilities are enhancing the growth of the data center as a service market.
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Data Center as a Service Market Drivers
Growing demand for Cloud Computing
The companies are shifting towards cloud services, as cloud computing has become the major next-generation data center trend. The migration of the whole network into the cloud and the deployment of hybrid cloud are further enhancing the data center as a service market. The hybrid cloud architecture allows to store sensitive data in a private network, and enables companies to protect and control data. Thus, the incorporation of multiple cloud-services by organizations are driving the demand for the data center as a service market.
The rise of Hyper-scale Data Centers
The organizations including small and medium are highly shifting towards cloud computing solutions which is accelerating the growth of the data center infrastructure. In addition, the growth of hyperscale facilities in order to store thousands of servers is driving the growth of the data center market. According to vXchange, more than 500 data centers were classified as hyperscale in 2019, and more than 151 data centers are scheduled for construction in 2020. These factors are driving the demand for hyperscale facilities which is surging the demand for data center as a service.
Data Center as a Service Market Challenges
Need for Energy Efficiency and lack of awarenessThe data center industry is highly being affected due to the massive amount of energy consumed and rising temperature problem are hampering the data center as a service market. Additionally, the lack of awareness about the services are leading to the requirement of maintaining the data center technologies. This is also affecting the adoption of data center services and the rising the need to focus on the generation of awareness among the data center owners.
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Data Center as a Service Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Data Center as a Service market. In 2020, the market of Data Center as a Service has been consolidated by the major players – Cloud Central Pty Ltd, Datacom Systems (ACT) Pty Ltd, Enterprise Data Corporation Pty Ltd, Hewlett-Packard Australia Pty., Dell Australia Pty Ltd, Emantra Pty Ltd, C3 Business Solutions Pty Ltd, IBM Corporation, Vertiv Co., Equinix and among others.
Acquisitions/Technology Launches
In June 2020, Hewlett Packard Enterprise announced the advancement of its edge-to-cloud platform-as-a-service (PaaS) strategy. This has led to the acceleration of next generation cloud services and acceleration of HPE GreenLake. The new HPE GreenLake cloud services, leads to the extension of container management, machine learning operations, storage, compute, data protection, and networking. This will further help customers to transform and modernize their applications and data that includes on premises, in colocation facilities, and increasingly at the edge.
Key Takeaways
In 2020, the Data Center as a Service market was dominated by North American region owing to the presence of financial and technical hubs in the US that are surging the growth of the market.
With the rising use of technology has led to the adoption of hyperscale facilities which has led to the acceleration of cloud computing solutions has uplifted the data as a service market.
The growing demand for cloud computing has led to the migration of data on the cloud which is significantly fueling the growth of data as a service market.
The rising energy consumption and lack of awareness in the data centers for the adoption of are hampering the growth of the market.
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