A key factor driving the growth of the global data center market size is the rise in adoption of multi-cloud and network upgrades to support 5G. Multi-cloud has gained significant prominence in recent times as it helps in preventing data loss or downtime, ensures security compliances, and meets workload requirements. Thus, multiple public and private clouds are being leveraged by enterprises for different application workloads. Furthermore, rising investments in communication network infrastructure are facilitating a smooth transition from 4G to 5G networks. The implementation of 5G will significantly increase data traffic, which will increase the demand for upgradation of the existing data centers and construction of new data centers. Thus, the adoption of multi-cloud and network upgrades will fuel the growth of the data center market value during the forecast period.
As per Technavio, the rise in adoption of edge computing will have a positive impact on the market and contribute to its growth significantly over the forecast period. This global data center market 2019-2023 research report also analyzes other important trends and market drivers that will affect market growth over 2019-2023.
Global Data Center Market: Rise in Adoption of Edge Computing
Edge computing has gained immense popularity over the last few years owing to its multiple advantages. Edge computing has the capability to reduce latency and improve server response, as the stored content is close to the client machine. Thus, the deployment of edge computing is increasing significantly, which in turn, is expected to stimulate the demand for edge data centers. The trend of edge data center deployment will continue during the forecast period, led by the advent of IoT and 5G technologies. Thus, the rise in adoption of edge computing will be one of the key data centers market trends, that will drive market growth during the forecast period.
“Apart from the rise in adoption of edge computing, other factors such as the development of IoT, AI, and increased adoption of HPC across enterprises will have a significant impact on the data center market growth during the forecast period,” says a senior analyst at Technavio.
Global Data Center Market: Segmentation Analysis
This market research report segments the global data center market by component (IT infrastructure, power management system, mechanical construction, general construction, and security solutions) and geographic regions (North America, APAC, Europe, MEA, and South America).
The North American region led the data center market in 2018, followed by Europe, APAC, South America, and MEA respectively. The dominance of the data center market in North America can be attributed to factors such as the rise in demand for high-performance computing (HPC) systems, the exponential growth of data traffic from enterprises, and the growing demand for high connectivity with low latency from end-user industries.
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Five Forces Analysis
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