by Hyperscale data centers facilitate massive cloud infrastructure that can handle thousands of applications and petabytes of data. They are specially engineered for scalability, modularity, and cost-efficiency with rack layouts that allow easy component upgrades and replacements while minimizing operational costs. With the rise of digital services, organizations are increasingly leveraging cloud platforms for data storage, computing, analytics, and more leading to huge volumes of data being generated across industries everyday. This has propelled the demand for hyperscale data center capacities globally to support public cloud services, artificial intelligence, big data analytics, IoT devices, and other digital initiatives.
The global hyperscale data center market is estimated to be valued at US$ 87.87 Bn in 2023 and is expected to exhibit a CAGR of 15.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
As highlighted in the market heading, rapid growth of cloud computing is a key driver fueling the hyperscale data center market. Cloud adoption has accelerated exponentially over the past few years as organizations transition from legacy infrastructure to cloud-based platforms to enhance scalability, flexibility and reduce costs. Hyperscale operators are aggressively expanding their data center footprints worldwide to ensure reliable cloud and network connectivity globally. Another major factor propelling the market growth is the surge in big data analytics across industries. The ability of hyperscale facilities to support massive data volumes and high-performance computing infrastructure makes them well-suited for advanced analytics workloads. Their modular, scalable designs allow seamless addition of storage, servers and networking capabilities as data volumes and computing needs increase. The driver mentioned in the heading along with rising adoption of big data analytics are expected to boost the hyperscale data center market during the forecast period.
Segment Analysis
The global hyperscale data center market is segmented based on infrastructure, component, and region. The infrastructure segment is further sub segmented into server infrastructure, storage infrastructure, network infrastructure, security infrastructure, power distribution, and cooling systems. The server infrastructure segment dominates the hyperscale data center infrastructure market owing to exponential surge in data center traffic and increasing demand for high performance servers. The component segment is categorized into servers, storage, network, security, power distribution, and cooling. The server component segment dominates the hyperscale data center market as it accounts for the largest share of CAPEX for data centers.
PEST Analysis
Political: Governments across regions have introduced various regulations to decrease carbon footprint and increase utilization of renewable energy. This has positively impacted adoption of green technologies in hyperscale data centers.
Economic: Growing digitalization and demand for cloud services from organizations are driving growth of data-driven businesses. Investments in infrastructure modernization are creating substantial opportunities for hyperscale data center market.
Social: Increased internet and smartphone penetration coupled with rising trend of social media, e-commerce and OTT platforms have accelerated data traffic. This has heightened need for data storage and management capabilities offered by hyperscale data centers.
Technological: Adoption of advanced technologies like AI, ML and edge computing are creating huge amount of data. Hyperscale data centers are leveraging technologies like SDN, flash storage, liquid immersion cooling to effectively process and analyze real-time big data for optimizing business operations.
Key Takeaways
The global hyperscale data center market is expected to witness high growth during the forecast period of 2023 to 2030.
The North American region currently dominates the hyperscale data center market owing to rapid digital transformation of organizations across industries. Major hyperscale data center operators in the region including AWS, Microsoft Azure and Google Cloud are expanding their footprint by establishing new facilities.
Key players operating in the hyperscale data center market are India Systems Pvt. Ltd., Enkay Technologies, Budget Signs, Truknox Technologies, Intellicon, BH Enterprizes, BenQ Corporation, Sony Corporation, Sharp Corporation, Panasonic Corporation, LG Electronics Inc., and Samsung Electronics Co. Ltd. Key players are focusing on developing modular and scalable infrastructure solutions to support emerging technologies. They are also incorporating renewable energy sources and green technologies like liquid immersion cooling to build sustainable hyperscale data centers.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
