LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global data center market to grow at a CAGR of close to 11% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global data center market for 2016-2020. The market is dependent on the construction of innovative data center facilities worldwide. Geographically, the market is segmented into the following regions: APAC, EMEA, and the Americas.
Technavio ICT analysts highlight the following four factors that are contributing to the growth of the global data center market:
- Increased spending on cloud data center
- Increased use of big data analytics
- Growing IoT
- Need for colocation and managed service data centers
Increased spending on cloud data center
Many cloud service providers (CSPs) construct cloud data centers that cost up to billions of dollars to offer cloud-based services to end-users and enterprises. These CSPs include AWS, Microsoft Azure, and Google Cloud. Growing SMEs prefer to run their business operations through CSPs, colocations, and web hosting cloud data centers due to benefits such as scalability, reliability, and cost reduction. CSPs such as AWS, Microsoft, and Google operate more than 100,000 servers worldwide to meet the increasing business demand. The rise in demand has necessitated the need for automation in cloud data centers. Many cloud data centers are termed as mega data centers, which consume large quantities of power during peak data-intensive operations. There is an increase in innovations in the design and deployment of these data centers. The enterprises spending on cloud data centers was USD 38 billion in 2015, and it is expected to reach USD 75 billion by 2020 at a CAGR of around 14.57%.
Increased use of big data analytics
Most business- and consumer-based applications generate large amounts of structured and unstructured data. They also use sensors that can generate massive amounts of data within a short time. The architecture for data generated by a single business application involves several sources. These collected data are of high volume, velocity, and variety. Big data analytics helps to understand this data and make business decisions based on them. The spending on big data infrastructure in data centers was valued at around USD 15 billion, and it is expected to grow to USD 25 billion by 2020, growing at a CAGR of 10.76%.
According to Rakesh Kumar Panda, a lead analyst at Technavio for data center research, “Big data analytics facilitates faster analysis and better utilization of computing resources. For predictive and consumer analytics operation of big data sets, enterprises are procuring high-performance computing infrastructures in data centers. Big data infrastructure spending includes compute, storage, and network and infrastructure software.”
Growing IoT
The number of Internet-connected devices is estimated to reach around 30 billion by 2019, which will give a major boost to the global data center market. The use of RFID sensors to tag, track, connect, and read objects in logistics and warehouses in the late 1990s popularized the concept of IoT. The growing number of connected devices will lead to the generation of large blocks of data. Ideas such as a connected car, connected home, connected health, and smart cities are gaining popularity. So, many industries such as manufacturing, utilities, retail, automotive, and social media are using IoT for increased data transfer. By 2020, IoT-enabled devices will increase the data center traffic by around 40 times.
Need for colocation and managed service data centers
“An enterprise operating a colocation facility instead of building its own data center can derive several benefits. Data center colocation is a facility that rents computing servers, storage, and network. It minimizes the utilization of power and bandwidth and enhances the security of enterprise IT equipment,” Rakesh.
The global data center colocation market will grow at a CAGR of around 13% during 2015-2020.
The CAPEX associated with building, operating, and updating a data center facility is reduced considerably in the case of a colocation facility. An enterprise considers several factors before the selection a colocation solution. Colocation facilities help SMEs to operate through modern infrastructure at reduced subscription costs. The number of these facilities is expected to increase over the forecast period.
Browse Related Reports:
- Global Data Center Storage Market 2016-2020
- Data Center Market in China 2016-2020
- Global Multi-tenant and Wholesale Data Center Market 2016-2020
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