The global data center market's size is poised to grow by USD $284.44 billion during the period from 2019-2023, progressing at a CAGR of more than 17% during the forecast period, according to a new report by Technavio. The analyst says the market is being driven by the rise in adoption of multi-cloud and network upgrades to support 5G. The report also finds that demand planning and expansion by "hyperscalers" is expected to boost the growth of the data center market.
Per Technavio, "The adoption of multi-cloud services is increasing significantly due to their various benefits. Multi-cloud architecture helps in preventing data loss or downtime during a localized component failure. It also ensures security compliances as well as meets workload requirements. These factors are encouraging enterprises to adopt multi-cloud services to meet their business requirements."
Further, Technavio says that increasing investments in 5G testing and its deployment are fueling the need to upgrade existing data center network infrastructure. Thus, the rise in adoption of multi-cloud and network upgrades will fuel the data center market growth during the forecast period.
TechnavioThe analyst says the market is also witnessing increased investment by hyperscale data centers toward planning and development of new facilities and capacity expansion of existing sites. The increased investments are mainly attributed to factors such as the increasing demand for public cloud services and a rise in "as-a-service" offerings, and the use of advanced technologies such as AI, ML, DL, and Big Data. Thus, Technavio predicts demand planning and expansion by hyperscalers will drive the growth of the data center market during the forecast period.
The report categorizes the market into segments for: IT infrastructure; power management systems; mechanical construction; general construction; and security solutions. The report also includes detailed profiles of leading companies and prominent vendors in the global data center market, including: Cisco Systems; Equinix; Huawei; IBM, and Microsoft.
Learn more at www.technavio.com.