Hyperscale Data Center Market

Hyperscale Data Center Market Research, 2030

The global hyperscale data center market was valued at $59.0 billion in 2020, and is projected to reach $585.0 billion by 2030, growing at a CAGR of 25.9% from 2021 to 2030.

The hyperscale data center market was effected by COVID-19 pandemic due to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. However, the market resumed its growth in 2021 owing to companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact.

The hyperscale data center is geared to provide a unified, generally scalable computational architecture to support the digital and cloud infrastructure of a technology. The hyperscale data center design is built from small, individual servers known as nodes, which are designed to provide computing, networking, and storage solutions to business enterprises. These nodes are combined and operated as a single entity. The primary concept behind designing hyperscale architecture is to begin with minimal infrastructure to keep early investments as low as feasible. As demand grows, more nodes can be added to the cluster to expand the basic infrastructure. Hyperscale data centers have been widely embraced by huge corporations, such as Amazon.com and Google, making them one of the fastest-growing technologies in the IT infrastructure space.

Rise in demand for data centers to enhance productivity and customer experiences propel the growth of the global hyperscale data center market. The need to increase the network operational efficiency positively impacts the growth of the hyperscale data center market. However, high implementation cost of hyperscale data center solutions hampers the hyperscale data center market growth. On the contrary, increase in cloud dependence and industry 4.0 trends are expected to offer remunerative opportunities for expansion of the hyperscale data center market during the forecast period.

Segment review

The hyperscale data center industry is segmented on the basis of component, user type, enterprise size, end user, and region. By component, the market is segmented into solution and service. On the basis of user type, the market is fragmented into cloud providers, colocation providers, and enterprises. By enterprise size, the market is bifurcated into, large enterprise and SMEs. By end user, the market is classified into BFSI, IT and telecom, government, energy and utilities, and others. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The global hyperscale data center industry is dominated by key players, such as Avago Technologies, Cavium, Inc., Cisco Systems, Inc., Ericsson, Hewlett-Packard, Intel Corporation, International Business Machines Corporation, Mellanox Technologies, Inc., Nlyte Software, and SanDisk Corporation. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.

By user type, the cloud providers segment dominated the hyperscale data center market share in 2020, and is expected to continue this trend during the forecast period as the hyperscale data centers are being utilized to develop scalable and robust cloud networks that can improve overall customer experience, availability, and operational costs. However, the enterprise segment is expected to witness the highest growth in the upcoming years, owing to growing demand for automation and remote operability in modern enterprises.

Region-wise, the hyperscale data center market share was dominated by North America in 2020, and is expected to retain its position during the forecast period. High concentration of cloud services providers in the region is expected to drive the market for hyperscale data center technology during the forecast period. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to significant economic and technological developments in the region, which is expected to fuel the growth of hyperscale data center solutions in the region in the coming few years.

COVID-19 Impact Analysis

The hyperscale data center market was aided by the entertainment and media sector during the pandemic. Due to the outbreak of the COVID-19 pandemic, the industry saw an increase in viewing of online and digital content, which was aided by the extensive use penetration of the internet and consumer electronic devices. With the increase in demand for digital services, OTT streaming services providers needed a network of configured live encoding and streaming servers, which further aided in boosting the growth of hyperscale data center market size. These servers were used in to increase computational capacity and ensure uninterrupted content delivery. Moreover, hyperscale data center architecture minimizes video stream latency and improves end-to-end video streaming capabilities.

Top Impacting Factors

Reduce Operational Costs

Adoption of hyperscale data centers decreases the total cost of ownership due to optimal hardware infrastructure utilization, effective allocation of system workloads, and process transformation. Hyperscale data center architectures are already being used across colocation data center because of their low cost and great performance. Hyperscale data center architecture assists enterprises in lowering their colocation data center OPEX and CAPEX.

Increase in Energy Efficiency

Energy efficiency is a key component that drives the hyperscale data center market, as all businesses strive to improve their total energy efficiency. Organizations seek data centers that use the least amount of energy while having the least impact on the environment. The drive to save money on power rises the demand for energy-efficient hyperscale data centers. In data centers, high-density blade servers, and storage systems provide higher computation capability per Watt of energy consumption.

KEY BENEFITS FOR STAKEHOLDERS

• The study provides an in-depth analysis of the global hyperscale data center market forecast along with current & future trends to explain the imminent investment pockets.
• Information about key drivers, restraints, & opportunities and their impact analysis on global hyperscale data center market trends is provided in the report.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
• Quantitative hyperscale data center market analysis from 2021 to 2030 is provided to determine the market potential.

 Hyperscale Data Center Market Report Highlights