Wednesday, 19th June 2019
Logo

Hyperscale data centre market to exceed $65 billion by 2025

Hyperscale Data Center Market is set to grow from its current market was valued at over USD 20 Billion in 2018 to USD 65 Billion by 2025, according to a new research report by Global Market Insights, Inc.

Rise in the demand for big data and cloud computing solutions in distributed computing environments is expected to drive the hyperscale data center market. Rapid increase in data traffic is the major challenge for organizations to store, manage and retrieve the massively growing data. The companies are adopting cloud computing solutions for its increased benefits such as flexibility, reduced IT expenses, scalability, collaboration efficiency and access to automatic updating and storage of large volume of data.


Rapid increase in business data is encouraging the large enterprises to invest heavily in IT expansion. For instance, in August 2018, Google announced its plan to expand its data center in Singapore to scale up capacity and meet increasing demand for services. In addition, the company will invest USD 600 million to expand its South Carolina facility. The growing popularity of cloud-based infrastructure and investments to expand the product portfolio are contributing in the hyperscale data center market growth.


The demand for rack-based Power Distribution Units (PDUs) is growing rapidly in the hyperscale data center market due to their high availability and high-power ratings features. These PDUs can be incorporated with all types of rackmount equipment without interrupting the power supply. It helps organization to reduce power consumption, thereby enhancing the efficiency of an IT facility. These solutions also help in reducing an organization's carbon footprint. It is being widely adopted by businesses for enhancing the business efficiency.

Increase in adoption of cloud-based services and rapid growth in smartphone and social media users in Asia Pacific is expected to drive the market size. The number of smartphone users is expected to cross 6 billion by 2025 with countries such as India, China, South Korea, Taiwan, and Indonesia being the major contributors. Businesses in the region are adopting data-intensive applications such as IoT, data analytics, AI services which needs high amount of data and large capital investments. Several companies are constructing hyperscale facilities to reduce their capital and operational expenses.


In the hyperscale data center market, IT & telecom sector accounted for over 45% of the industry share and is witnessing high adoption of the large-scale infrastructure facilities owing to the increase in data generation and storage requirement. Telecom operators are offering flexible internet or data plans, which is driving the data traffic. The rapid increase in data generation is encouraging the businesses to implement highly scalable and efficient IT environment with high computing power, thereby accelerating the market growth. Global telecommunication companies are establishing mega infrastructure for catering the widespread customer base.

The Western European and Nordic markets are experiencing high demand for hyperscale data centers owing to the easy availability of renewable energy sources, land for development, tax incentives, strengthening fiber connectivity and reduction in electricity cost. These factors are helping cloud service providers to focus on constructing more hyperscale data center in Western Europe. For instance, In June 2018, Google announced its plan to launch its hyperscale data center in the Netherlands due to the availability of sustainable energy sources which will help to lower the energy costs for data centers.

Key players operating in the hyperscale data center market include Broadcom Ltd., Cavium, Inc., Cisco Systems, Inc., Dell, Inc., Huawei Technologies Co., Ltd., IBM Corporation, Intel Corporation, Lenovo Group Ltd., Microsoft Corporation, NVIDIA Corporation, Sandisk LLC, and Schneider Electric SE, among others. Players in the market are manufacturing business-specific solutions which enables customers to customize solutions based on enterprise requirements.


WorldStream, a fast-growing hosting provider delivering security-focused solutions including dedicat...
First phase of delivery expected to complete in Q4 2020.
The Cloud computing and communications specialist will efficiently grow its data centre ecosystem wi...
Rapid provision of a large number of dedicated servers enables video game developer to implement fas...
Enterprise cloud, private cloud and colocation now available in 35 Equinix data centres in Europe, U...
Equinix has announced the next phase in the evolution of Platform Equinix® with the unveiling of Net...
Latest evolution of partnership enables more businesses to enjoy secure and on-demand connections to...
The four largest markets are forecast to grow by 21% in 2019.