"Extraordinary growth in public-cloud and data-center revenues is likely to fuel the growth of the Hyperscale Data Centers Market"

Globally, the hyperscale data centers market is expected to grow with a CAGR of more than 17.5% during the forecast period from 2021 to 2029, starting from US$ 25.04 Bn in 2019. Hyperscale data centers are designed to offer a single largely scalable computer architecture. The primary idea behind developing hyperscale data center is to start with small infrastructure in order to keep the initial investments as low as possible. Based on the increasing demand, the initial infrastructure can be expended by adding new nodes to the cluster. Furthermore, growing demand for online services such as social networking, gaming websites, and live channels is generating large volume of data, which needs proper storage and processing. Cloud computing has been changing data storage requirements and its rapid growth is expected to generate high demand for cloud resources and data centers. Moreover, hyperscale data centers provides various advantages such as maximizing the cooling effect, allocating electrical power in discrete packages, ensure electricity availability, and balances workloads across servers. These accomplishments of hyperscale data centers also drive its adoption. Hyperscale data centers are largely adopted by big companies such as Amazon and Google. Due to increasing number of IT companies and rapid growth on the computer technologies is thereby supporting the hyperscale data center to emerge as one of the fastest-growing technologies in the IT infrastructure world. However, hyperscale data center consume large amount of power which generates heat that is harmful for the environment, and also in order to develop a hyperscale data center, the initial investment and installation cost is very high. Also, there can be issues with limitation of storage space which could also decline the rate of adoption of hyperscale data center. These factors are likely to hinder the growth of this market during the forecast period.

"Networking equipment segment to dominate the hyperscale data centers market"

Based on component, the hyperscale data centers market is segmented into solutions and services. The solutions segment covers the market for cooling, IT racks and enclosures, power, LV/MV distribution, networking equipment and DCIM. The networking equipment segment is likely to dominate the hyperscale data center market by holding market share of around 30%. As there is rapid increase in size of IT facilities to support the widespread business operations, there is growing need for smooth data transfer and data integration. Integration of a large number of servers and storage devices requires effective network infrastructure to ensure effective communication and sharing of the enterprise data. Also, large companies are gradually moving towards adopting software-defined networking technology which help them achieve high performance, and low expectancy in data processing and transmission. These factors largely drive the demand for networking equipment, and thus fuel the growth of this market.

"North America is expected to dominate the market in near future"

North America dominates the hyperscale data centers market by holding largest market share of the total revenue generated worldwide. Owing to the technological advancements and increasing adoption of cloud-based solution for big data storage and cloud computing in North America, this region has a greater impact on the overall market size of the hyperscale data centers. Following North America, Europe holds the second position in the global market owing to the increasing adoption of this solution in various industry verticals. As the companies in North America and Europe have a high spending capacities, these regions dominate the global market, however Asia-Pacific is expected to grow at a highest CAGR during the forecast period. As countries such as India and China provide significant IT infrastructure, has strong presence of OTT providers and telecom operators and large customer base, the hyperscale data center market is experiencing a boom in this region. Moreover, there is a strong internet penetration rate in this region which also provides high growth opportunities to the service providers.

Some of the prominent players operating in the Schneider Electric SE, NVIDIA Corporation, Sandisk LLC, Lenovo Group Ltd., IBM Corporation, Intel Corporation, Microsoft Corporation, Cisco Systems, Inc., Dell, Inc., Huawei Technologies Co., Ltd., Cavium, Inc., and Broadcom Ltd. among others.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Hyperscale Data Centers market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Hyperscale Data Centers market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Hyperscale Data Centers market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Hyperscale Data Centers market?
• Which is the largest regional market for Hyperscale Data Centers market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Hyperscale Data Centers market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Hyperscale Data Centers market worldwide?