Hyper Scale Data Center Market Overview
The global Hyper Scale Data Center Market is estimated to surpass
$104.2 billion mark by 2026 growing at an estimated CAGR of more than 16.5%
during the forecast period 2021 to 2026. Hyper scale data center is a facility owned and
operated by the company it supports. This includes colocation providers
such as AWS, Microsoft, Google, and Apple. They offer robust, scalable
applications and storage portfolio of services to individuals or businesses. Data
are becoming increasingly important in any sector and each every bit of that is
stored.
Increased usage of internet in many developing countries and the data
shared, has made Hyperscale computing necessary for cloud and big data storage. The market is expected to experience significant growth over the
forecast period owing to rising computing, networking, memory, and storage
resources demand in distributed or grid computing environments. Surge in cloud adoption,
increase in business operational needs, and rising demand for data center
colocation facilities will also drive market growth.
Increased demand for cloud service resources
and data centers from the consumers and businesses has led to the
implementation of large-scale public cloud data centers. These hyperscale cloud
players are anticipated to dominate the cloud industry. These
factors are set to boosts the
market growth for Hyper Scale Data Center during the forecast period 2021-2026
Report Coverage
The report: “Hyper Scale Data Center
Market – Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of
the following segments of the Hyper Scale Data Center Market.
By Component: Server,
Network Infrastructure, storage and other.
By End user: Enterprises,
Colocation providers, .cloud provider, and others.
By Application: BFSI, IT, Telecom, Research, Defence, Healthcare, Media, Gaming, Retail
and Others.
By Geography: North
America (U.S, Canada, Mexico), Europe(Germany, UK, France, Italy, Spain, Russia
and Others), APAC(China, Japan India, South Korea, Australia and Others), South
America (Brazil, Argentina and Others) and ROW (Middle East and Africa).
Key Takeaways
Hyperscale Data Center Market, By region, 2020
Hyper Scale Data Center Market
Segment Analysis - By Application
The Hyper
Scale Data center market is segmented based on the applications such as BFSI, healthcare, retail, education, gaming and on-demand entertainment.
On demand entertainment content have seen tremendous growth and digitalisation
at 20.1% CAGR through 2026. Rise in the BFSI sector has accelerated the growth of Hyper Scale Data Center market as well.
Swift increase in customers and regulatory measure towards the financial
inclusion measures are the major driving factors for the growth of IT business
and BFSI, this in turn improves the market growth of Hyper Scale Data Center
Market. Due to increasing competitive
nature of the market the financial institutions has to provide the services
easy and quick way to the customer thereby driving market demand.
Hyper Scale Data
Center Market Segment Analysis - By
Component
The market
is segmented into Servers, Network Infrastructure, Storage based on Component.
Adoption of improved IT solutions and facilities has increased the business
operations and in turn the demand for storage and servers has increased. Enterprises are shifting
towards software-defined networking to obtain high performance. Many enterprises and IT companies has a shift
towards software based networking for the better performance, massive scale and
low latency in data transmission and processing.
Data is abundant in the recent
years and storage of these data needs special data centers, Companies like
Google produces tons of data and this is stored in increasingly complex ways.
The data centers are huge to store. Hyper Scale Data Center Market is one which
helps many sectors for storing their data and processing with networking
properly.
Hyper Scale Data Center Market
Segment Analysis - Geography
North
America is the largest market for Hyper Scale Data Center Market at 37% share
in 2020. The
rate of adoption of cloud-based computing is rapidly increasing, owing to
which, data centers are increasing in U.S. The U.S is home to many tech giants,
such as Apple, Amazon, Microsoft, and Facebook, offering hyperscale data
centers. Increased OTT penetration in US market is driving the market.
This is
also rising at a global level where more than 60% of the world are OTT users
driven in particular by the Covid-19 Pandemic. Data gathered is increased as
the OTT market booms. APAC is expected to grow in the forecasted period as the
growing demand for cloud services and increased IT industries and this will in
turn increase the need for hyper scale data center.
Hyper Scale Data Center Market Drivers
Increasing
requirement for superior performance to drive growth
Data
centers in the have become the important with high performance computation as
well as storage requirement to support high-end applications. Requirement
for intelligent and advanced data center technologies to cater to the growing
data center performance requirement, coupled with the growth of strategic IT
trends, is expected to increase the demand for hyper scale data center
deployments. The advancement of hyperscale computing is all about businesses
and their association with their data and IT operations. Enterprises do not
want to spend millions of dollars to build and operate a data center. This has
improved the growth of the Hyper Scale Data Center.
Better Uptime Reliability
Uptime flexibility
can vary from provider to provider, but if the facility has a strong track
record, this could be one of the excellent advantages of colocation. For
example, a colocation data center with an established record of more than
99,99999% uptime reliability encounters less than 3.15 seconds of downtime over
the course of a year.
Hyper Scale Data Center Market
Challenges
High installation cost
Constructing a private data center is
clearly a major capital investment, but after the building is finished the
expenses will not end. The day-to-day operation of a data center incurs a
substantial amount of recurring maintenance costs. Colocation hosting needs
higher start-up costs than if the hosting firms hire servers. They have to buy
hardware and upgrades on their own. Instead of bandwidth, budgeting gets
frustrating with fluctuating monthly leases. Maintenance limitations on time or
money.
Hyper Scale Data Center Market Landscape
The
Hyper Scale Data Center market highly consolidated and fragmented because of
the dominance by a few key companies in the market. Also, the barrier for new
entrants is high due to the requirement of the high initial cost to enter into
the market. Major key player in the market are Amazon, Microsoft, Alphabet,
Facebook, Alibaba, Cisco, Hewlett Packard, Intel Corporation, Broadcom, IBM, Quanta
Computer, Huawei, Ericsson, and other. These are companies that are
continuously investing in making strategic partnership and acquisition to gain
more market share.
Acquisitions/Technology
Launches/Partnerships
- In December, 2020, Adani to
invest $269m to set up hyperscale data centre in Chennai called Adani Chennai-1.
Chennai has sound optic fibre network connectivity with three undersea cable
landing stations. Also, its geographic proximity to key Asian cities gives it
an edge.
- In December, 2020, New Zealand’s ‘first’ hyperscale
data centre Invercargill is to be built with the partnership between Datagrid and Meridian.
Datagrid is a company run by Hawaiki Cable founder Remi Galasso and Callplus
founder Malcolm Dick. The two companies will develop a 25,000 square metre
facility near Makarewa, about 11 kilometres north of Invercargill. That
facility will generate 60 megawatts of power, and will be expanded to deliver
100 megawatts over 40,000 square metres over several years.
Related Reports
Report Code: ITR 23704
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