Global Market Study on Datacenters: Healthcare Application Segment to Register a Value CAGR of 12.6% Between 2016 and 2024


Datacenters Market
  • Published On : Dec-2016 |
  • Pages : 243 Pages |
  • Format :

This report by Persistence Market Research on the global datacenter market for the period 2016–2024 presents an outlook of the market across the globe. The primary objective of the report is to offer updates on market opportunities in the global datacenter market based on installation & construction type and consulting & integration services types.  

The report is categorically divided into four sections namely, by installation & construction type, by consulting & integration type, by application type and by region, to understand and offer insights on the global datacenter market. The report provides analysis of the global datacenter market in terms of market value (US$ Mn).

The report starts with an overview of the global datacenter market which includes market description and taxonomy. The market is divided into Datacenter Installation & Construction and Datacenter Consulting & Integration services. Thereafter, Persistence Market Research’s analysis of key trends, opportunities, drivers and restraints from the supply and demand perspectives are included.

The section that follows after drivers and restrains analyses the overall market by providing the overall market size, absolute dollar opportunity  and growth rate comparison of the installation and construction market.

The section that follows after the overall market analysis describes the market on the basis of installation & construction types and presents the forecast in terms of value for the next eight years. On the basis of installation & construction type, the global datacenter market has been segmented into:

  • New Datacenter Builds
    • Internal Datacenter
      • Server Room
      • Server closet
      • Localized
      • Midtier
      • High-end
    • Service Provider Datacenter
      • POP Server Room
      • POP Server Closet
      • Localized
      • Midtier
      • High-end
      • Mega
  • Datacenter Rebuilds
    • Internal Datacenter
      • Server Room
      • Server closet
      • Localized
      • Midtier
      • High-end
    • Service Provider Datacenter
      • POP Server Room
      • POP Server Closet
      • Localized
      • Midtier
      • High-end
      • Mega

Another section included in the report is on the basis of application type that analyses the market and presents the forecast in terms of value over the next eight years. On the basis of application type, the global datacenter market has been segmented into:

  • IT & Telecommunications
  • BFSI
  • Government
  • Healthcare
  • Others

Next section included in the report is on the basis of consulting & integration type that analyses the market and presents the forecast in terms of value over the next eight years. On the basis of consulting & integration type, the global datacenter market has been segmented into:

Consulting Activities

  • Network Design
  • Network Design & Analysis
  • Security Consulting
  • Network Analysis
  • Benchmarking
  • Needs Assessment
  • Operation Assessment
  • Process Improvement

Integration Activities

  • Project Management
  • Installation
  • Test & debug
  • Custom Software Development
  • Security Implementation
  • Change Management
  • System Configuration
  • Training & Site Preparation

The following section of the report includes analysis of the global datacenter market on the basis of region. The global datacenter market is segmented into five key regions:

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East and Africa

In the final section of the report, the global datacenter market competitive landscape is included to provide report audiences with a dashboard view of the market players, based on categories of providers across the value chain, their presence in the datacenter market and key differentiators. Some of the major market players featured in this section are Hewlett Packard Enterprise, Equinix Inc, Microsoft Corporation, NTT Communications Corporations, IBM Corporation, Apple Inc., AT&T Inc., Google Inc., Cisco Systems, Inc., and Digital Realty.

Research methodology

To deduce market size, the report considers the average licenses sold and IT spending in the datacenter installation & construction and consulting & integration services across geographies. Furthermore, data points such as regional split and market split by installation & construction type, consulting & integration types and applications are analysed and qualitative inputs from primary respondents have been incorporated to arrive at suitable market estimates. The forecast presented in the report evaluates the total revenue that is expected to be generated across the datacenter market over forecast period (2016–2024). When developing the market forecast, the starting point involves sizing up the current market, which forms the basis for forecasting how the market is anticipated to take shape during the forecast period. Given the characteristics of the market, Persistence Market Research has triangulated the data on the basis of various analysis based on both supply side and demand side. Moreover, the number of datacenter builds and rebuilds in terms of units (volume) is also analysed and forecasted in the report for installation & construction and consulting & integration services.

It is imperative to note that in an ever-fluctuating global economy, we not only conduct forecasts in terms of CAGR, but also analyze the market on the basis of key parameters, such as Year-on-Year (Y-o-Y) growth, to understand the predictability of the market and identify the right opportunities in the datacenter market. As previously highlighted, the global datacenter market is split into various segments on the basis of installation & construction type, consulting & integration services, application type and region. All these segments have been analysed in terms of Basis Point Share (BPS) to understand the individual segments’ relative contribution to market growth. This detailed level of information is important for identification of many key trends in the global datacenter market.

Another key feature of this report is the analysis of the global datacenter market by installation & construction types, consulting & integration types, application type and region and its revenue forecast in terms of absolute dollar opportunity, critical in assessing the level of opportunity that a provider can look to achieve, as well as to identify potential resources from a sales perspective in the global datacenter market.

In order to understand key growth segments in terms of growth and performance of the global datacenter market, Persistence Market Research has developed a market attractiveness index to help providers identify real market opportunities.

A bottom-up top-down approach to quantifying and validating the global datacenter market size

Secondary research plays an important part in the compilation of this report. Persistence Market Research has taken into consideration factors such as total global IT expenditure, global IT spending in the datacenter market, specific region wise spending, top ten key market players in the global datacenter market, and the revenue earned by top players along with their market share. Several other factors as per their importance and impact are given a specific weight and this weighted factor analysis is used in compiling the report.

Persistence Market Research analysts have done in-depth primary research and collated the viewpoints of key individuals from companies leading both the global datacenter installation & construction market and consulting & integration services market. Based on their interactions, deep insights regarding the booming sectors of the global datacenter market; the specific market segment holding the maximum market share; and how the market is going to behave in the near future have been ascertained. This perspective of key market players has played an important part in compiling the primary research for the global datacenter market report. In order to calculate the global datacenter market size, Persistence Market Research analysts have taken a bottom-up approach by first quantifying the regional datacenter markets and then summing up the regional totals to arrive at the global datacenter market size. To validate this approach, Persistence Market Research has taken a top-down approach and matched the figures coming up from the previous analysis with the global market size as inferred by them.

Datacenter is a centralized repository that provides physical or virtual infrastructure to manage and store data of the organization. The term ‘Datacenter’ signifies different meanings to different types of organizations. It connotes a small closet or room that contains two or more servers and a network patch panel for small organizations. For large organizations, it signifies a major centralized environment that contains the wide IT systems and solutions that support large and connected applications.

Datacenters are use in various end use industries such as banking and financial institutions, healthcare, IT & telecommunication, information technology, government and retail industry.

The global datacenter installation & construction market is expected to grow at a CAGR of 11.5% during the forecast period and the global datacenter consulting & integration services market is expected to be valued at US$ 20.34 Bn during the forecast period and is expected to exhibit a CAGR of 12.4%.

Factors influencing the global datacenter market growth

The growing digital transformation through mobile devices, connected technology, and the Internet of Things demands a datacenter ecosystem with a high speed of deployment, flexibility, scalability, security, and availability of data. This digital transformation leads to the development of innovative datacenter infrastructure that serves as highly agile, cost-effective, and software-defined infrastructure. The datacenter market is undergoing rapid change with a change in focus towards cloud computing, cloud provisioning, cloud migration, cloud-based deployment, and automation. Moreover, companies today are focusing on the inherent benefits of cloud such as scalability, flexibility, and ease of deployment and are allocating resources to public, private, and hybrid cloud environments. Software defined datacenters are also driving the datacenter market by providing increased level of automation. Also, Infrastructure Convergence is driving the datacenter market due to an increasing demand for operational efficiency, mobility, bandwidth, and security.

Trends influencing the global datacenter market growth

Today, a large number of companies are implementing green and sustainable datacenters to combat increasing energy costs and to ensure compliance with government regulations pertaining to environment protection. The growth of hyperscale datacenters with the growth of 3rd platform technologies demands an increased level of computational, data, and networking resources. This requires scaling of the infrastructure beyond the capacity limitation of today’s datacenters by making it more flexible and modular. This can be achieved by changing the current hardware-defined infrastructure to a software-defined infrastructure characterized by resource degradation, modularity, and scalability. Moreover, datacenters today are focusing on real-time data analytics to provide the necessary visibility required to make critical business decisions. The growing trend of big data analytics has increased the complexity of datacenter operations.

Global datacenter market segmentation

The global datacenter installation and construction market is expected to be valued at US$ 95,563.6 Mn during the forecast period and is expected to grow at a CAGR of 11.5% during the forecast period. The market is divided into new datacenter builds and datacenter rebuilds. New datacenter builds is further classified into internal & service provider datacenter segment. The internal datacenter segment is divided into following sub segments such as server closet, server room, localized, midtier and high-end. Service provider datacenter segment is also further divided into POP server closet, POP server room, localized, midtier, and high-end and mega datacenter sub segments. Datacenter rebuilds is also further divided into internal & service provider datacenter segment. The internal datacenter segment is divided into following sub segments such as server closet, server room, localized, midtier and high-end. Service provider datacenter segment is also further divided into POP server closet, POP server room, localized, midtier, and high-end and mega datacenter sub segments.

The global datacenter market is also divided based on consulting and integration services types. The consulting activities are classified into network design, network design and analysis, security consulting, process management, network analysis, needs assessment, benchmarking, operations assessment. The integration activities are further classified as project management, installation, test& debug, training & site preparation, change management, custom software development, system configuration and security implementation. The global consulting and integration services market is expected to be valued at US$ 20,342.5 Mn and is expected to grow at a CAGR of 12.4% during the forecast period.

Global datacenter market forecast, by Installation & Construction type

On the basis of installation & construction type, internal datacenter segment is estimated to be valued at US$ 20.37 Bn in 2016, and is projected to decrease approximately 2.8X by the end of 2024, to be valued at US$ 7,192.6 Mn by 2024. The internal datacenter segment is expected to decline at a CAGR of -12.2% during the forecast period. This is attributed to the decline in the localized, midtier and high-end datacenters sub segments during the forecast period. Moreover, the internal datacenters don’t provide business agility at the datacenter scale, leading to the growth of service provider datacenters. Service provider datacenter segment is estimated to be valued at US$ 13.21 Bn in 2016, and is projected to increase approximately 5.9X by the end of 2024 to be valued at US$ 78.21 Bn. The service provider datacenter segment is expected to register significantly high CAGR of 24.9% during the forecast period. The growth in service provider datacenter segment is attributed to the growth of hyper scale, prefabricated datacenters, and mega datacenters in the segment. Moreover, the growth of cloud-based technology, internet and mobile applications is driving the growth of outsourcing of the datacenter services, thereby leading to the growth of service providers in the datacenter segment.

Global datacenter market forecast, by region

Region wise, North America is forecasted to be the most lucrative region in terms of value by 2024. North America is estimated to hold 34.39% of total market value share in the year 2016 and is expected to dominate throughout the forecast period. Majorly, the markets in North America and Europe are expected to make their presence felt largely in the global datacenter installation and construction market. Asia Pacific region is expected to lead the market in terms of market value during the forecast period due to the fast emerging technology adoption of cloud, mobile and data analytics.

global datacenter market

Key market players dominating the global datacenter market

Some of the top companies functioning in the global datacenter market are Apple Inc., Google Inc., Equinix Inc., Digital Realty, IBM Corporation, Hewlett Packard Enterprise, NTT Communications Corporations, AT&T Inc., Cisco Systems, Inc., and Microsoft Corporation.

Company Profiles

  • Google Inc. 
  • AT&T Inc.
  • NTT Communications Corporation
  • Equinix, Inc.
  • Microsoft Corporation
  • International Business Machines Corporation
  • Hewlett-Packard Company
  • Cisco Systems,Inc.
  •  Apple Inc. 
  • Digital Realty
  • Others.
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