Global Hyperscale Data Centers Market Report, published by Variant Market Research, forecast that the global market is expected to reach $156 billion by 2025 from $25.4 billion in 2017, growing at a CAGR of 25.5% from 2017 to 2025. By Geography, Asia-Pacific and Europe are expected to grow at a CAGR of 26.8% and 25.9%, respectively, during the forecast period.
“Hyperscale Data Center Market (By Component: Solution, and Service; By User Type: Colocation Providers, Cloud Providers, and Enterprises; By Data Center Size: Large Data Centers, and Small and Medium-Sized Data Centers; By Industry: Government and Defense, Research and Academics, Manufacturing, Healthcare, Banking, Financial Services, & Insurance (BFSI), Media And Entertainment, IT and Telecom, Retail, and Other Industries; By Geography: North America, Europe, Asia-Pacific and Row) Global Scenario, Market Size, Outlook, Trend and Forecast, 2015 – 2024”
The global hyperscale data center market is mainly driven by increasing adoption of grid computing environments
Rising application performance, increasing adoption of grid computing environments, and increasing need for reduction in CAPEX and OPEX are the primary drivers fueling the market growth. However, the market consists of one major restraint i.e. generation of enormous heat and power failure. Moreover, cost efficiency to scale up, and fast growth in the number of IoT devices & flexibility is expected to open up new prospects for the market in the coming years.
Component, user type, data center size, industry and geography are the segments considered in the global hyperscale data centers market. On the basis of component the segmentation includes solution (server, storage, networking, and software) and service (consulting, installation and deployment, and maintenance and support). Colocation providers, cloud providers and enterprises are covered under the user type segment. By data center size, the segment is bifurcated into small and medium enterprises, and large data centers. Government and defense, research and academics, manufacturing, healthcare, banking, financial services, & insurance (BFSI), media and entertainment, IT and telecom, retail and other industries (energy and utilities, and transportation and logistics are the segregation of the industry segment.
Storage solution, by component segment is expected to reach the fastest CAGR over the forecast period
Storage solution is anticipated to achieve the fastest CAGR during the forecast period 2017 – 2025. The market for storage is growing as it caters the organizations with ideal storage solutions that help them to diminish the differences between customary file-based applications and novel object access hypotheses. Moreover, in the services segment the maintenance and support service is likely to grow with highest CAGR throughout the forecast period.
Cloud provider occupied the principal share in the user type segment in 2017
Cloud provider contributed for the largest share in the user type segment in the year 2017, and is expected to continue its trend over the forecast period 2017 – 2025.
BFSI is expected to dominate the industry vertical segment in the forecast timeframe
Based on the industry vertical segment, the BFSI sub-segment could occupy the majority of the share in the coming years. The high growth in the sub-segment can be attributed due to immense competition in the finance sector increases the pressure on the banks to become more agile and efficient.
North America accounted for the maximum share in the global hyperscale data centers market
In 2017, North America was the highest revenue generating region accounting for 35.84% of the global hyperscale data centers market share owing to the presence of a large number of data centers across various industry verticals in this region. However, Asia-Pacific is likely to achieve the fastest CAGR during the forecast period, owing to increasing construction investments in the region. The market for APAC is growing owing to development in enterprise IT infrastructure, increasing adoption in BFSI, and other applications in the region.
Prominent players operating in the market include Cisco Systems, Inc., Hewlett Packard Enterprise, NVIDIA Corporation, Cavium, Lenovo, Quanta Computer Inc., Broadcom, IBM Corporation, Huawei Technologies Co., Ltd., and Ericsson AB, among others.