Worldwide Mega Data Center Industry Forecasts to 2024: Key Players Cisco Systems, Dell Software, Fujitsu, and Hewlett-Packard Enterprise
DUBLIN, July 29, 2019 /PRNewswire/ -- The "Mega Data Center Market - Growth, Trends, and Forecast (2019 - 2024)" report has been added to ResearchAndMarkets.com's offering.
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The global mega data center was valued at USD 19.63 billion in 2018 and is expected to reach a value of USD 25.62 billion by 2024 at a CAGR of 4.58% over the forecast period of 2019-2024.
Key Highlights
-- Virtualization has driven the data center industry over the years.
Companies have sought to reduce infrastructure by focusing on IT
operations on fewer, more highly utilized machines. This process has led
to a wider view of data centers in general: companies operating multiple
data centers can choose to focus their facilities into fewer and larger
implementations with hopes of decreasing complexity and costs.
-- Implementing fewer mega data centers depending on their locations can
allow a company to enjoy advantages of certain local benefits, such as
tax incentives, low energy prices, climate, or availability of
alternative energy sources. Thus, mega data centers are the result of
the attempts to minimize cost and thereby maximize profit.
-- The merits of choosing a software-led, industry relevant and adequately
set-up mega data center are lower costs of IT management compared to as
in the present, as well as the ability to access a vast amount of
Internet and industrial Internet data at local datacenter speed and
bandwidth. This capability is likely to spur IT spending worldwide, as
there will be substantial opportunities for early adopters to invest in
new IT techniques, in order to reduce overall business costs and
increase revenues.
-- The market for mega data centers is driven by factors including
increasing cloud and colocation services, associated cost benefits, and
improved economies of scale. Microsoft, Google, Amazon (AWS), and
Facebook data centers are in a class by themselves, and have to function
fully automatic, self-healing, networked mega data centers that operate
at fiber optic speeds to make a fabric that can access any node in any
particular data center, as there are multiple pathways to every node.
-- However, higher initial investments and low availability of resources
are some of the factors presenting challenges to this market. Despite
such challenges, various organizations have already adopted or are
initiating the adoption of mega data centers.
Major Market Trends
Rising Demand from BFSI Sector to Augment Market Growth
-- Banking and finance sector is one of the largest generators of data, and
the need for a data center to regulate the cost of operations is a
primary driver.
-- Finance and banking structures use data centers to store customer
records, employee management, transactions, electronic banking services,
such as remote banking, telebanking, self-inquiry, which need data
centers for their functioning.
-- Data centers are believed to be an infrastructure that is the future of
finance. Many institutions have created private cloud system to
accommodate massive network, storage, and server capacities to support
their retail financial centers, ATMs, and active online accounts.
-- Many banks maintain their own data centers, but the trend is found to be
changing owing to the fluctuations in the profits for the banks. Also,
maintaining a data center is a cumbersome process owing to the cost
drain on the IT, real estate and operations as any data center requires
proper cooling, security and power facilities. This can act as a
challenge for the BFSI industry during the forecast period.
Growing Demand from Asia-Pacific to Drive the Market
-- The growing demand for high-density, redundant facilities throughout
China is precipitating a shift in the design and development of the
country's data centers. China has 50 internet users per 100 population
indicating scope for lot of development and the connectivity ecosystem
is made up of 73 colocation data centers, 52 cloud service providers and
0 network fabrics.
-- However, power, space and IP transit all cost more in China emphasizing
the difficulties in maintaining a data center. Similarly, in India, 9.5%
of the GDP is contributed by the digital economy, the digital economy
includes USD 25,518 million fixed line telephone subscriptions and
1011.054 million mobile telephone subscriptions, indicating a lot of
scope for development of data centers.
-- Moreover, owing to regulatory and security reasons, a number of
organizations in India, especially from the BFSI sector, are not allowed
to host their data in a data center that is out of the country. As a
result, the data center providers are setting up local data centers in
India indicating the growing mega data center facilities in India.
Competitive Landscape
The global mega data center market is highly concentrated due to higher initial investments and low availability of resources which are presenting challenges to this market. Some of the key players in the market are Cisco Systems Inc., Dell Software Inc., Fujitsu Ltd, Hewlett-Packard Enterprise.
Some recent developments in the market include:
-- January 2019 - Leading San Francisco-based private investment firm, GI
Partners, has continued its focus on technology infrastructure
investments, with the purchase of two data centers properties from NTT
Data. The properties, located in Plano, Texas and Quincy, Washington,
add to GI Partners' already extensive portfolio of data center and
technology-intensive properties.
-- June 2018 - AT&T has closed the sales of 31 of its colocation data
center facilities to Brookfield Infrastructure that was first announced
in June 2018. Under the terms of the deal, AT&T received US$1.1 billion
from Brookfield.
Key Topics Covered
1 INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Force Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Introduction to Market Drivers and Restraints
4.4 Market Drivers
4.4.1 Increasing Demand For Data Center Consolidation
4.5 Market Restraints
4.5.1 High Investment and Installation Costs
4.6 Technology Snapshot
5 MARKET SEGMENTATION
5.1 By Solution
5.1.1 Storage
5.1.2 Networking
5.1.3 Server
5.1.4 Security
5.1.5 Other Solutions
5.2 By End User
5.2.1 BFSI
5.2.2 Telecom and IT
5.2.3 Government
5.2.4 Media and Entertainment
5.2.5 Other End Users
5.3 Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 Latin America
5.3.5 Middle East & Africa
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Cisco Systems Inc.
6.1.2 Dell Software Inc.
6.1.3 Fujitsu Ltd.
6.1.4 Hewlett-Packard Enterprise
6.1.5 IBM Corporation
6.1.6 Intel Corporation
6.1.7 Juniper Networks Inc.
6.1.8 Verizon Wireless
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information about this report visit https://www.researchandmarkets.com/r/p5bba9
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