Green Data Center Market Research, 2031
The global green data center market size was valued at $49.7 billion in 2021, and is projected to reach $303.9 billion by 2031, growing at a CAGR of 20.1% from 2022 to 2031.
Green Data Centers can be elaborated as data repositories for systems designed for maximizing energy efficiency and minimizing environmental impact. Green data centers used advanced technologies for data storage, management, and operations on the data.
Factors such as surge in penetration of high-end cloud computing in enterprise, rise in green data center complexities due to scalability and surge in the expenditure on green data center technology are key factors driving the Green Data Center market growth. However, rise in concerns related to data privacy and growing demand for managed services hamper market growth. Furthermore, rise in adoption of multi-cloud and network upgrade to support 5G technology provide ample growth opportunities for the green data center industry growth.
The green data center market is segmented into Component, Industry Vertical and Enterprise Size.
The green data center market is segmented based on component, enterprise size and industry vertical. On the basis of component, the market is bifurcated into solution and services. By solutions, the market is segmented into power systems, monitoring and management system, networking system, cooling system and others. Depending on services, the market is divided into professional services and managed services. Depending on professional services, the market is further classified into training & education, integration & deployment, and support & maintenance. By organization size, it is categorized into large enterprises and SMEs. By industry vertical, the market is fragmented into BFSI, healthcare, retail, manufacturing, IT & telecom, media & entertainment, government & defense, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Some of the major players in the market are ABB LTD, Cyber Power Systems, Dell Technologies Inc., Delta Electronics, Inc., Digital Realty Trust, Inc., Eaton Corporation, Hewlett-Packard, Huawei Technologies, IBM Corporation, NEC Corporation, Nortek Air Solutions, NTT Corporation, Schneider Electric and ZutaCore. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
By component, the solutions segment dominated growth of the green data center market in 2021, and is expected to maintain its dominance in the upcoming years due to adoption of various green initiative’s solutions such as power systems and cooling system. However, the services segment is expected to witness highest growth rate during the forecast period due to adoption of green data center services among end users as they ensure effective functioning of solutions and platforms throughout the process.
North America dominates the green data center industry. Growth of the market in this region is attributed to several factors such as increase in digitalization and adoption of green data center solutions by the various sectors such as manufacturing, BFSI, and governments. Moreover, presence of key players provides ample growth opportunities for market growth. However, Asia-Pacific is expected to witness highest growth rate during the forecast period due to presence of many SMEs and rise in digital infrastructure in the region.
The report focuses on growth prospects, restraints, and analysis of the global green data center market trends. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the global green data center market share.
COVID-19 Impact Analysis
The global green data center market has been significantly impacted by the COVID-19 outbreak. Production and manufacturing facilities across the globe have been shut down, owing to the outbreak of the global health crisis and unavailability of workforce. This has further impacted the global economy, and is causing economic hardship for business and communities, globally. Countries across the globe have suffered major loss in terms business and revenue, owing to lockdown and lack of availability of raw material across the world. Production, BFSI, and manufacturing sectors globally have been heavily impacted by the outbreak of the COVID-19 disease, which, in turn, led to economic downfall, thereby declining the growth of the green data center market in 2021.
COVID-19 has enforced the global green data center industry to make short-term decisions with long-term implications. However, the negative impact caused by COVID-19 on global green data center is expected to continue for a short period. Conversely, by mid-2021, the market is anticipated to witness robust recovery due to extensive demand for consumer electronics. In addition, the ongoing pandemic is expected to escalate the need for high-end cloud computing services, which is expected to drive the need for green data center solution
Top Impacting Factors
Rise in green data center complexities due to scalability
Hyperscale green data center solution is based on the concept of distrusted systems and on-demand provision of IT resources, which is intended for organizations to achieve superior performance across IT infrastructure. Modern green data centers are identical with high-speed computational capabilities such as automation, cloud computing capabilities, data storage at scale, and high-end security, which is expected to offer high scalability in addition to flexibility. Moreover, hyper-scale is based on the concept of distributed systems and on-demand provisions of the IT resources designed to operate a large number of servers simultaneously with high speed.
In addition, industries, such as manufacturing, utility, social media, automotive, and retail, have been employing green data center solutions for the rising security data transfer, which forecasts to offer to enhance scalability across green data centers.
Surge in the expenditure on green data center technology
Cloud computing solution has gained high traction across small & medium enterprises and large enterprises, which has led to increase in the adoption of green data center application, as the demand for high-end secure storage solutions is increasing across the globe. For instance, in July 22, 2021, Merlin, a leading entertainment company, announced to invest over $118 billion to develop a 24 MW green data center in Barcelona, Spain. The strategic investment in cloud computing solutions is expected to drive the need for green data center solutions. Further, rise in investment in the green data center is anticipated to act as a prime driver of the market. In addition, the emergence of hybrid cloud technology coupled with state-of-the-art infrastructure is driving the need for reliable private green data center servers. These factors are expected to drive the growth of the global green data center market during the forecast period.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the Green Data Center Market Forecast, current trends, estimations, and dynamics of the green data center market analysis from 2021 to 2031 to identify the prevailing green data center market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the green data center market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global green data center market trends, key players, market segments, application areas, and market growth strategies.
Green Data Center Market Report Highlights
Market Size By 2031
USD 303.9 billion
CAGR of 20.1%
2021 - 2031
By Industry Vertical
By Enterprise Size
Key Market Players
Digital Realty Trust, Nortek Air Solutions, NEC Corporation, ZutaCore, Midas Green Technologies, NTT Communications, ABB Ltd., Huawei Technologies Co. Ltd, Delta Electronics, Cyber Power Systems, Hewlett Packard Enterprise, Eaton Corporation, IBM Corporation, Dell Technologies, Super Micro, Cisco, Schneider Electric
According to the insights of the CXOs of leading companies, modern enterprises globally have been continually adopting cloud computing solutions in almost all business aspects, including information storage, accounting, business communication, and daily business functions. A green data center is a centralized physical facility that makes enterprise computing possible. Further, rise in virtual infrastructure across prime enterprises is driving the need for build-in server rooms or data centers for virtualized networks; therefore, is expected to offer lucrative growth opportunities for the market growth. Furthermore, the green data center is considered central to an enterprise’s IT operations, where most business data is processed, stored, and disseminated to users. In addition, the rise in demand for digitization across enterprises in emerging economies is expected to offer profitable opportunities for the green data center market.
The global green data center market is highly competitive, owing to the strong presence of existing vendors. Green data center vendors, who have access to extensive technical and financial resources, are anticipated to gain a competitive edge over their rivals, as they have the capacity to cater to the market requirements. The competitive environment in this market is expected to further intensify with increase in technological innovations, product extensions, and different strategies adopted by key vendors.
Prominent market players explore new technologies and platforms to meet increase in customer demands. Product launches, partnerships, and acquisitions are expected to enable them to expand their product portfolios and penetrate different regions. For instance, in June 2019, Schneider Electric expanded its data center solutions portfolio by introducing Critical Facility Operations. It has improved digitized versions of cloud & service providers and large data center operators. The advantages of the solution for customers include lower risk & increased uptime, growing operational efficiency, and efficient IT planning.
Among the analyzed regions, North America exhibits the highest adoption of green data center and has been experiencing massive expansion of the market. On the other hand, Asia-Pacific is expected to grow at a faster pace, predicting lucrative growth due to emerging countries such as China, Japan, and India investing in these technologies.