Latest News- Data Center Market: IT infrastructure is expected to lead the Component segment during 2025-2029

The Data Center Market is being driven by Rise in adoption of multi-cloud and network upgrades

The Data Center Market is expected to grow at a CAGR of 15.6% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 535.6 billion. Data centers are enhancing energy efficiency through the implementation of Artificial Intelligence (AI) technology. By computing the performance of servers, power systems, and cooling systems, AI enables faster decision-making and optimization. Data center service providers are integrating AI into their automation software to minimize human intervention and facilitate energy-efficient operations. Additionally, AI facilitates effective cooling management through supervised control over mechanical cooling systems, optimizing power usage and reducing downtime and human errors. The ultimate goal is to increase performance, minimize energy consumption, and ensure uninterrupted data processing. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Component
  • IT infrastructure
  • Power management
  • Mechanical construction
  • General construction
  • Security solutions
• End-user
  • BFSI
  • Energy
  • IT
  • Others
• Design
  • Traditional
  • Containerized
  • Modular
• Geography
  • North America
    • Canada
    • US
  • APAC
    • China
    • India
    • Japan
  • Europe
    • Germany
    • UK
    • France
    • Italy
  • South America
    • Brazil
  • Middle East and Africa

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Rise in adoption of multi-cloud and network upgrades
• Increased investments toward planning of new data centers and capacity expansion by hyperscalers
• Growing demand data centers among SMEs

However, the market also witnesses some limitations, which are as follows:

• Cybersecurity issues
• High capital-intensive nature of market
• Increasing power consumption

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Market Scope in Data Center Market Research Report

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Research Analysis Overview

The Data Center Market is experiencing significant growth due to the increasing adoption of technologies like Artificial Intelligence and Machine Learning, Internet of Things, Cloud Computing, and Edge Computing. IT infrastructure providers like Facebook and Apple are investing heavily in this space. Digitalization and business transformation are driving the demand for cost savings, scalability, and flexibility offered by data centers. Real-time data processing is crucial for online retail and e-commerce, making cloud technology and data center systems essential. The storing and analyzing of personalized data are key workloads, with the added benefits of speed and minimizing lost data. On-premises infrastructure is also an option for businesses and individuals seeking control and customization.

Market Research Overview

The Data Center Market is a significant segment of the global Technology Hardware, Storage, and Peripherals Market, encompassing manufacturers of servers, electronic components, and peripherals for data storage and processing. Driven by the increasing 4Vs of data - volume, velocity, veracity, and variety - the market is experiencing significant growth. This trend is primarily attributed to the proliferation of Artificial Intelligence, Machine Learning, Internet of Things, and Cloud Computing, which generate massive amounts of data. Additionally, the adoption of Edge Computing, Green Data Centers, and Digitalization by businesses and individuals further fuels market expansion. Technavio, a leading technology research firm, forecasts continued growth in this sector due to the increasing demand for Enterprise Engineering Solutions, Software Testing Services, and Customers' ongoing digital transformation efforts.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/