Data center market size to reach $519.34 billion by 2025

The data center market research from Technavio indicates neutral growth in the short term as the business impact of COVID-19 spreads.

Data center market size by 2025

“One of the primary growth drivers for this market is the rise in adoption of multi-cloud and network upgrade to support 5G,” says a senior analyst for the Information Technology industry at Technavio.

Enterprises are embracing multi-cloud architecture to prevent data loss or downtime due to a localized component failure, ensure security compliances, and meet workload requirements. The demand for the deployment of 4G/5G networks globally is also expected to increase during the forecast period.

With the implementation of 5G technologies and the consequent increase in speed, the rate at which data is generated, transmitted, and consumed will grow. This will drive the demand for the upgrade of the existing data center network infrastructure and there will be an increase in new data centers being constructed closer to the data origins for reducing latency.

As the markets recover, the data center market size is expected to grow by $519.34 billion during the period 2021-2025.

Data center market segment highlights for 2020

• The data center market is expected to post a year-over-year growth rate of 18.30%.
• The data center IT infrastructure segment includes server infrastructure, storage infrastructure, SDDC, network infrastructure, converged infrastructure, backup and recovery software, automation software, and data center infrastructure management (DCIM) solutions.
• The use of such IT infrastructure is increasing owing to the increase in demand for computing power and storage to support the growth in global data traffic.
• The data center market share growth by the IT infrastructure segment will be faster than the power management system, mechanical construction, general construction, and security solutions segments.
• The post COVID-19 impact has fast-tracked the demand for IT infrastructure due to the increase in the adoption of cloud services and digitization.

Regional analysis

• 35% of the growth will originate from the North America region.
• The US is a key market for data centers in North America. Market growth in this region will be faster than the growth of the market in MEA.
• The increasing adoption of cloud services by enterprises across industries in the US and Canada will facilitate the data center market growth in North America over the forecast period.