Dublin, Oct. 19, 2023 (GLOBE NEWSWIRE) -- The "Global Data Center Transformation Market by Service Type (Consolidation Services, Optimization Services, Automation Services, Infrastructure Management Services), Tier Type, Data Center Type, Data Center Size, and Region - Forecast to 2028" report has been added to ResearchAndMarkets.com's offering.
The global Data Center Transformation market is projected to reach USD 18.9 billion by 2028 and is instrumental in supporting the ongoing surge in cloud adoption and hybridization, making it a pivotal force in the data-driven revolution.
The Growth Story
The global data center transformation market is set to grow from USD 11.5 billion in 2023 to USD 18.9 billion by 2028, with a CAGR of 10.5% during the forecast period. The remarkable increase in cloud adoption and hybridization is a key driver of this growth.
Tier 3 Data Centers Shine
Within the data center transformation market, tier 3 data centers play a prominent role. These data centers are known for their advanced functionalities and impressive uptime availability, making them the preferred choice for many large companies. Uptime Institute has classified tier 3 data centers as those guaranteeing 99.982% availability, experiencing just 1.56 hours of downtime per year. These data centers feature N+1 redundancy, ensuring at least one backup component in case of system failure. Moreover, they offer a minimum of 72-hour power outage protection, enhancing reliability.
Healthcare Vertical Leads
The healthcare vertical is on a rapid growth trajectory in the data center transformation market, boasting the highest CAGR during the forecast period. The healthcare industry is generating an exponential amount of biomedical data, requiring robust data center infrastructure to support this growth. The shift from paper-based medical records to electronic health records (EHRs) necessitates secure data storage and management. Data centers are vital for facilitating telemedicine and remote patient monitoring solutions, making healthcare more accessible and efficient. Healthcare organizations are increasingly using data analytics and big data for medical research, patient outcomes analysis, and population health management. Therefore, data center transformation is crucial to support these data-intensive activities.
Europe's Strong Presence
Europe is a significant player in the data center transformation market, holding the second-largest market share. The region's diverse business needs, stringent data privacy regulations, and robust IT scene contribute to its prominence. Europe's growing demand for hyperscale data center facilities and data center colocation, along with access to green power and favorable climatic conditions, is fueling its growth. The Netherlands, in particular, stands out as a hub for advanced hyperscale data center facilities, hosting the online services of major cloud providers.
Takeaways for Executives
Understanding the trajectory of the global data center transformation market is essential for businesses aiming to thrive in the evolving digital economy. This knowledge will serve as a catalyst for innovation and strategic success in an increasingly dynamic digital landscape.
Competitive landscape
The key technology vendors in the market include Dell (US), Microsoft (US), IBM (US), Schneider Electric (France), Cisco (US), NTT (Japan), HCLTech (India), Accenture (Ireland), Cognizant (India), Google (US), Wipro (India), Atos (France), TCS (India), Hitachi (Japan), NetApp (US), Mindteck (India), Bytes Technology Group (UK), General Datatech (US), Insight Enterprises (US), Tech Mahindra (India), NETSCOUT (US), Dyntek (US), Softchoice (Canada), InKnowTech (India), Rahi Systems (US), Blue Mantis (UK), GreenField Software (India), Hyperview (Canada), FlexiScale (UK), LiquidStack (US), RackBank Datacenters (India), and Vapor IO (US).
Most key players have adopted partnerships and product developments to cater to the demand for data center transformation.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 338 |
| Forecast Period | 2023 - 2028 |
| Estimated Market Value (USD) in 2023 | $11.5 Billion |
| Forecasted Market Value (USD) by 2028 | $18.9 Billion |
| Compound Annual Growth Rate | 10.5% |
| Regions Covered | Global |
Premium Insights
- Digital Transformation, Cloud Adoption, Need for Cost/Energy Efficiency, and Legacy Modernization to Boost Data Center Transformation Market Growth
- Consolidation Services Segment to Account for Largest Market Share in 2023
- Tier 4 Segment to Account for Largest Market Share in 2023
- Enterprise Data Center Segment to Account for Largest Market Share in 2023
- Large Data Centers Segment to Account for Largest Market Share in 2023
- BFSI Vertical to Account for Largest Market Share in 2023
- Asia-Pacific Expected to Emerge as Best Market for Investments in the Next Five Years
Market Dynamics
Drivers
- Leveraging Digital Transformation to Drive Data Center Evolution
- Increase in Cloud Adoption and Hybridization
- Indispensable Requirements to Improve Data Center Uptime and Energy Efficiency
- Proliferation of Data Center Colocation Facilities Globally
- Data Explosion
- Rise in Necessity to Tackle Significant Network Congestion Within Data Centers
Restraints
- Data Security and Privacy Concerns
- Complexity Related to Transformation
Opportunities
- Rise in the Number of Data Center Facilities
- Growing Demand for AI and Automation
- Data Center Consolidation and Optimization
Challenges
- Downtime and Disruption Challenge
- Need to Partner with Other Vendors for Data Center Expertise
Case Study Analysis
- Carhartt Delivered Cloud-First Strategy with IBM Turbonomic
- Thai Government Used Schneider to Reduce Carbon Emission Footprints and Power Usage for Better Energy Efficiency
- Animal Logic Selected Schneider's Prefabricated System for Enhancing Its Planning and Operational Performance
- Seamless Cloud Migration Increased Scalability and Lowered Risk for Global Tech Provider GDT
- Productivity and Customer Experience Enhanced with GDT's Data Center Solutions
Competitive Portfolio:
- Accenture
- Animal Logic
- Atos
- Blue Mantis
- Bytes Technology Group
- Carhartt
- Cisco
- Cognizant
- Dell Technologies
- Dyntek
- FlexiScale
- General Datatech (GDT)
- Greenfield Software
- HCL Technologies
- Hitachi
- Hyperview
- IBM
- InKnowTech
- Insight Enterprises
- Liquidstack
- Microsoft
- Mindteck
- NetApp
- Netscout
- NTT
- Rackbank Datacenters
- Rahi Systems
- Schneider Electric
- Softchoice
- TCS
- Tech Mahindra
- Vapor IO
- Wipro
For more information about this report visit https://www.researchandmarkets.com/r/54m6vw
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