Product Code: 46567
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.
- 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.
Scope of the Report
Mega data center refers to a single facility with 15,000 or more servers. Increasing digitization globally is expected to contribute value to different end-user industries, such as BFSI, IT services, which is a rising need for mega data centers worldwide. Various governmental bodies have been identified to facilitate Industry 4.0 by deploying IoT and cloud services, which is further expected to drive the mega data center market.
Key Market Trends
Rising Demand From BFSI Sector to Augment the 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.
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.
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Table of Contents
- 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