Market Size of Data Center Services Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 19.80 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Data Center Service Market Analysis
The Data Center Services Market size is expected to grow from USD 98.52 billion in 2023 to USD 243.12 billion by 2028, at a CAGR of 19.80% during the forecast period (2023-2028).
- Business leaders are facing an influx of data; thus, they are under pressure to manage all business-critical data, along with the constant need to outpace their competitors.
- The emerging cloud technology in data centers is one of the key factors driving the demand for data center systems and technology, thereby fueling market growth. Cloud technology is more flexible because it can be accessed with different devices and easily recover lost data. At the same time, cloud computing offers high speed, which helps other businesses to grow.
- The increase in demand for online retail or e-commerce has acted as a catalyst for the data center industry. Customers want more personalized data, and for this data center, services are beneficial. They help in storing and analyzing the data.
- The data center workloads are also increasing due to increased demand for improving application performance, storage requirements, mobile data use due to increased apps, and growing internet usage. As a result, more and more organizations are shifting to cloud data storage throughout the world, thus bolstering the demand for data center services.
- On the flip side, concerns relating to data privacy are a major concern nowadays, limiting this market's growth. As the data is not being hosted locally, there are high chances of data leakage. As a result, data center service providers have a challenge in terms of data security and availability, with backups, disaster recovery, and business continuity planning (BCP) services available with a single click.
- Owing to the COVID-19 outbreak, data centers saw an increase in demand for Internet bandwidth as users either worked from home (WFH) or turned to video streaming for entertainment. Managed hosting and cloud computing expanded, and demand for colocation rose.
- Since all major organizations began working from home (WFH), data centers, cloud services, and online backups are vital, and that is where data centers step in to help bridge the gap. Even during the pandemic, most data center owners expanded their capacity to accommodate increasing demand.
