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The global mega data center market is highly driven by increasing inclination digitization and increasing amount of data due to the growing digital demand. As the industrial sector across the globe are experiencing a technological boost, adoption of various advanced tools and techniques is drastically increasing. Developing businesses are generating large amount of data traffic that need effective storage and management facilities. Growing businesses and industrial sectors have generated an increasing need for expansion of data storage capacities. To fulfill this need, mega data centers are highly utilized as they provide high storage capability, significant bandwidth, and facilitates large-scale data transfer. Also, the adoption of mega data centers is also driven by need for data center consolidation and cost-benefit associated with them.
Furthermore, the growing usage of cloud services for data storage is also expected to drive the market for mega data center, during the forecast period. Companies such as Amazon, Microsoft, Google and many more have huge data storage requirements which drives their attention to mega data centers to meet their storage needs. Though these facilities are effective and user-friendly, they require huge investment and approval from government authorities. Thus, high investment and installation cost and regulatory barriers are likely to have a negative impact of market growth. Moreover, lack of technical support in the developing and underdeveloped countries also hinder the rate of adoption of mega data centers in these regions.
Based on end user, the banking and finance industry is expected to hold maximum market share in the global mega data centers market. As this sector generates maximum amount if data regularly, they need an efficient data storage facility that could help them manage and process the data hassle-free. Also, security of the data generated in this sector is of high demand, thus mega data centers are largely utilized in this sector. Based on the geography, North America dominates the mega data center market by holding largest market share of nearly 40% of the total revenue generated worldwide. Technological innovations and improvisation of business infrastructure is primarily contributing to the high demand for mega data centers in North American region. Being a business hub, this region generates large amount of data each year that demands large storage facilities. Most of the companies dominating the data centers market are based in North America, and thus contribute to the high market value of this regional segment.
Moreover, increasing adoption of cloud services, managed services, colocation and other hybrid approaches to test new business models, and launch new products and services are also driving the demand for mega data centers in this region. However, Asia-Pacific is projected to witness highest growth during the forecast period. Transformation from traditional data centers to advanced large-capacity data storage facilities is mainly driving the growth of mega data centers market in this region. As countries such as India and China are focus on digital economy, the amount of data generated is growing rapidly. Moreover, number of organizations especially in the BFSI sector, are not permitted to host their data in a data center out of the country. This regulatory barrier makes it mandatory for the companies to set up their data centers within the country. Also, many international companies are establishing their local data centers in India, which facilitates the increasing number of mega data centers facilities in India, and ultimately in the Asia-Pacific region.
Some of the major companies profiled in the report include Cisco Systems Inc., Fujitsu Ltd, Dell Software Inc., Hewlett-Packard Enterprise, Emerson Network Power, EMC Corporation, IBM Corporation, Juniper Networks Inc., Intel Corporation, Schneider Electric SE among others.
According to a new market research report published by Credence Research “Global Mega Data Center Market (Solutions (Storage, Networking, Servers, Security), Services (Professional, Monitoring, SI), End-User (BFSI, Telecom and IT, Government, Media and Entertainment)) – Growth, Future Prospects and Competitive Analysis, 2019 – 2027”, the overall mega data center market worldwide is set to grow with a CAGR of 5.1% during the forecast period from 2019 to 2027, starting from US$ 18.95 Bn in 2018.