Hyperscale Data Center Market Overview:
Hyperscale Data Center Market is expected to garner $71.2 billion by 2022, registering a CAGR of 20.7 % during the forecast period 2016 - 2022. It is designed to offer a single largely scalable compute architecture. The architecture is developed from small, individual servers called nodes that offer computing, networking, and storage solutions. These nodes are grouped together and managed as a single entity. The main idea behind developing hyperscale architecture is to start with small infrastructure in order to keep the initial investments as low as possible. With an increasing demand, new nodes can be added to the cluster in order to expand the initial infrastructure. Hyperscale data centers have been largely adopted by big companies such as Amazon and Google, thereby emerging as one of the fastest-growing technologies in the IT infrastructure world.
Hyperscale data center offers a wide array of applications in various industries, namely IT & telecom, BFSI, government utilities, healthcare, energy, manufacturing, and others. The market has been analysed across different geographic regions including North America, Europe, Asia-Pacific and LAMEA.
The factors driving this market are energy efficiency, application of hyperscale data center across various industry domains, open compute project and reduced total cost of ownership. On the contrary, power failure and generation of enormous heat are some of the restraints for the world hyperscale data center industry.
Key companies profiled in this report include Intel Corporation, Nlyte Software, Sandisk Corporation, Avago Technologies, Cisco Systems, INC., Hewlett-Packard, Ericsson, Cavium, Inc., International Business Machines Corporation and Mellanox Technologies, Inc.
The world hyperscale market has been segmented based on user type, application, component, geography and end-user. Based on user type, market is classified into cloud providers, colocation providers and enterprises. Hyperscale data center is an essential commodity to build a scalable and robust cloud, hence used by various cloud service providers. Enterprises can either host their hyperscale data centers within the premises or outsource it to a colocation service provider. Regardless of its application, an effective hyperscale data center can be achieved by striking the right balance between location, infrastructure facilities, IT equipment, and operation staff.
Application wise, the market is categorized into manufacturing, government utilities, BFSI, IT & Telecommunication, Healthcare, energy and others (Education and Retail). Tremendous growth in the IT services has increased the demand for hyperscale data centers in the IT & telecom industry. It is important to re-architect the traditional data center infrastructure, thus allowing the IT & telecom industry to reap the benefits of the service-oriented world.
Component wise, market is classified into server, networking and others. The increasing operational complexities and growing demand from consumers raises the need for hyperscale data centers that are more efficient than traditional data centers. This also implies that hyperscale data centers need more technologically advanced hardware and networking components. The server segment contributed maximum revenue in 2015 and is expected to dominate the market throughout the forecast period.
Global Hyperscale Data Center Market, by Component, 2015 (% COMPARIOSN)
Asia-Pacific Hyperscale Data Center Market Scenario
Asia-Pacific is expected to be the fastest growing region for hyperscale data center industry. This growth in data center market is likely to take place due to growing demand for cloud service from small-, medium-, and large-segment enterprises and increased adoption of hyperscale data center architecture and technologies by industries from various sectors.
IT & Telecommunication industry was the largest revenue generating segment in the Asia-Pacific market in 2015. BFSI industry would be the largest revenue generating segment by 2022. Major factors contributing for this growth are rapid development in the banking sector of the major economies viz., China, India, and Japan. Following diagram shows the Asia-Pacific Data Center Market by application.
Asia-Pacific Hyperscale Data Center Market, by Application, 2015 ($MILLION)
Value Chain Analysis
The value chain of hyperscale data center market features stakeholders like component or raw material suppliers, ODM, OEM, and end user or customer. Each of these players share a specific value at their point of operation, which in turn contributes to the competitive value of the product. The R&D activities, innovations, marketing strategies, and aesthetics enhance the value associated with the end-deliverables of each player.
Value Chain Analysis of Hyperscale Data Center Market
The stakeholders mentioned in the value chain explain the contribution made by them on different levels. Component or raw material suppliers are the first stakeholders in the value chain. Component suppliers provide the raw material and other essential elements required to manufacture the equipment and devices (servers, storage devices, and microprocessors), which are required in a hyperscale data center.
ODMs are the next stakeholders in the value chain. ODMs (Intel, SanDisk, Quanta Computers) manufacture devices and components, such as servers, microprocessors, network switches, integrated rack systems, and storage solutions that are further utilized to build a hyperscale data center.
OEMs are the next stakeholders in the value chain. OEMs assemble the components procured from ODMs and offer data center infrastructure, storage, and other solutions. End users are the industries that implement hyperscale data center architecture or build and host them for other clients (colocation providers).
- This study comprises analytical depiction of the global hyperscale data center market size with the current trends and future estimation scenarios to depict the investment pockets.
- he report determines the overall hyperscale data center market share, market potential and helps understand the profitable trends for attaining a stronger coverage.
- The report highlights information regarding key drivers, restraints, and opportunities with a detailed impact analysis.
- The current market trends are quantitatively analyzed and a forecast for 20162022 is presented to highlight the financial competency of the market.
- Porter’s five forces model analysis of the hyperscale data center industry illustrates the potency of the buyers and suppliers.
- Value chain analysis provides a clear understanding of the roles of stakeholders involved.
HYPERSCALE DATA CENTER MARKET SEGMENT
By User Type
- Cloud Providers
- Colocation Providers
- Government Utilities
- IT & Telecommunication
- Others (Education and Retail)
- North America