Hyperscale Data Center Market Sector Set for Expansion, Aiming for $585.0 Billion by 2030
According to a new report published by
Allied Market Research, titled, “Hyperscale Data Center Market,"
The hyperscale data center market was valued at $59.0 billion in 2020, and is
estimated to reach $585.0 billion by 2030, growing at a CAGR of 25.9% from 2021
to 2030.
Hyperscale
data centers provide businesses with more data storage capacity as well as technologically
upgraded servers with quicker processing capabilities. Enterprises seek
colocation data canter that use the least amount of energy while having the
least impact on the environment. Companies are developing novel data centers to
reduce their environmental effect. Such applications promise great opportunity
for the growth of the global hyperscale data center market in the coming years.
Furthermore,
key factors that drive the growth of the hyperscale data center market include,
growing demand for cloud and cloud services in modern-day business enterprises.
In addition, increase in internet penetration positively impacts the growth of
the hyperscale data center industry. However, the need for skilled and
experienced workforce for the maintenance and upkeep of hyperscale data centers
are anticipated to limit the market growth. On the contrary, increase in cloud
applications is expected to offer remunerative opportunities for expansion of
the hyperscale data center market during the forecast period.
On
the basis of end user, the IT and Telecom segment dominated the overall
hyperscale data center market share in 2020, and is expected to continue this
trend during the forecast period. This is attributed as the enterprise adapts
to a changed IT landscape in the rise of the digital economy. This trend will
continue in 2021, as the world slowly defines the contours of the “next normal”
in its battle with COVID-19. It is an enormous challenge, and an enormous
opportunity, and digital infrastructure will be central to this transition.
However,
the energy and utilities segment is expected to witness highest growth as
various industries from different domains have been trying to build system
infrastructures that are more dynamic, agile, and cost-efficient are
anticipated to grow in the coming years, which is expected to further fuel the
growth of the global hyperscale data center market.
Region-wise,
the hyperscale data center market was dominated by North America in 2020, and
is expected to retain its position during the forecast period, owing to the
presence of advanced digital infrastructure and high demand for cloud solutions
in the region. However, Asia-Pacific is expected to witness significant growth
during the hyperscale data center market forecast, owing to its ongoing rapid
digital transformation trends that are expected to increase the scope for
hyperscale data center industry in the region.
The
key players profiled in the hyperscale data center market analysis are Avago
Technologies, Cavium, Inc., Cisco Systems, Inc., Ericsson, Hewlett-Packard,
Intel Corporation, International Business Machines Corporation, Mellanox
Technologies, Inc., Nlyte Software, and SanDisk Corporation. These players have
adopted various strategies to increase their market penetration and strengthen
their position in the industry.
The
COVID-19 pandemic had an overall positive affect on the growth of the global
hyperscale data center market size, owing to increase in work from home and
remote education trends during the period, which influenced the growth of
digital and cloud dependence services, and thus supports the growth of the
global hyperscale data center market. Such factors enable key players to
increase their market share during the period. For instance, Microsoft
Corporation announced that its cloud (Microsoft azure) segment grew by almost
60% during the early phases of the pandemic.
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