Market Trends of data center Industry
Rising data consumption, growing number of digitalization applications, such as smart services, social networking, cashless payments, smart home automation services, and other applications drives the market growth
- The global data consumption increased from 1.8 GB/month in 2016 to 7.6 GB/month in 2022. It is estimated to reach 26 GB/month by 2029. The growing number of digitalization applications, such as smart services, social networking, cashless payments, smart home automation services, and other applications, has boosted data consumption globally. A few countries, such as China and the United States, have already implemented 6G, while multiple countries are still implementing phases of 5G.
- However, in Africa, the deployment has been slow as the region plans to strengthen its 4G services first and then roll out 5G. The growing demand for online streaming services such as Netflix, Disney+, and Amazon Prime is boosting the consumption of data among users. The data consumed per smartphone increased from 1.8 GB/month in 2016 to 9.1 GB/month in 2023, which may reach 26 GB/month by 2029.
- Global data consumption is expected to grow further during the forecast period, reaching 19.2%. The leading regions in terms of data consumption are Africa, North America, and the Middle East, with 25.8%, 24.6%, and 23.9%, respectively. The increasing data consumption due to high bandwidth speeds and the growing adoption of digitalization services and IoT platforms may boost the demand for data centers globally.
Understand The Key Trends Shaping This Market
Download Sample
Growing digitalization services such as online shopping, social networking, cab booking, digital transactions, food orders, and other services are expected to drive the market demand
- The global population was estimated at 7.91 billion in 2022, with 4.95 billion internet users and 4.62 billion active social media users. On average, global users spend around 6 hours using the internet daily. The number of internet users increased from 3,282 million in 2016 to 4,950 in 2022. This number is estimated to reach 6,926 million by 2029.
- The number of users is expected to record a CAGR of 4.6% during the forecast period (2023-2029). Growing digitalization services such as online shopping, social networking, cab booking, digital transactions, food orders, and other services are expected to increase data consumption. The data traffic per smartphone increased from 45.3 GB/month in 2022, which may reach 155.9 GB/month by 2029. The data consumption is expected to grow by 18.6% during the forecast period. The regions with more than 90% internet users include North America and Northern and Western Europe.
- However, Asia-Pacific leads globally in terms of the number of smartphone users. The number of smartphone users was estimated at 2,647 million in 2022, which may reach 4,456 million by 2029. The region is estimated to record a CAGR of 7.5% in terms of the number of smartphone users during the forecast period. The deployment of 5G has helped users gain access to multiple digitalization services in the region.
- The United Arab Emirates, South Korea, China, and the Netherlands are the leading countries globally, with internet speeds of 136.4 Mbps, 106.9 Mbps, 96.3 Mbps, and 94.9 Mbps, respectively. The implementation of advanced technologies in telecommunication and smart devices and the growing number of people using digitalization services are expected to drive the growth of the global data center market in the future.
Understand The Key Trends Shaping This Market
Download Sample
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Quick adoption of 5G network and deployment of 6G in developed nations, and increasing average download speeds of both 4G anf 5G services drives the market growth
- The growing demand for home automation services, streaming content, and online gaming may increase data consumption, thus boosting the demand for data centers globally.
- The growing demand for smart devices such as televisions, tablets, lighting, and their digital applications is boosting the global demand for fiber optic cables.
