Hyperscale Data Center Market Size To Hold USD 593 Bn By 2030

Published Date : 18 Jan 2023

The global hyperscale data center market size was exhibited at USD 79.68 billion in 2022 and is expected to hold around USD 593 billion by 2030, growing at a CAGR of 28.52% over the forecast period from 2022 to 2030.

A technology's digital and cloud infrastructure will be supported by a hyperscale data center that offers a single, generally scalable computing architecture. The hyperscale data center market is estimated to reach $585 Bn by 2030. 

Hyperscale data centers are enormous, mission-critical buildings built to effectively handle reliable, scalable applications. They are frequently connected to major data-generating businesses like Google and Amazon. it is a specific area or facility where a company keeps its servers and IT hardware. The business can use the resources in its data center to run its operations or offer those resources as a service to the general public. 

In addition to being noticeably bigger than enterprise data centers, hyperscale data centers operate noticeably better than them thanks to the benefits of economies of scale and specialized engineering. The requirements for a hyperscale data center are 5,000 servers and 10,000 square feet, although this is an approximation.

Hyperscale Data Center Market Report Scope

Report Coverage Details
Market Size in 2022 USD 79.68 Billion
Market Size by 2030 USD 593 Billion
Growth Rate from 2022 to 2030 CAGR of 28.52%
Base Year 2022
Forecast Period 2022 to 2030
Segments Covered By Component, By End-User, By Enterprise Size, By Infrastructure, By Industry
Regions Covered  North America, Europe, Asia-Pacific, Latin America and Middle East & Africa


Report Highlights

On the basis of components, the service segment is the leading segment and is expected to make the largest contribution to the hyperscale data center. The predicted period will see the fastest growth in services. The need for managed services has increased as a result of businesses' rising desire to manage workloads optimally with greater agility, efficiency, and security—all without having to deal with the difficulties of training, integration, and deployment. 

The need for services generated by the use of hyperscale data centers is another important element in its growth in enterprises. Despite the benefits of hyperscale data centers, there are still some difficulties that necessitate the utilization of services that go above and beyond what a conventional IT team can offer. As a result, many companies are turning to as-a-service companies for assistance.

On the basis of industry, the highest CAGR is projected for the banking, financial services, and insurance segment during the forecasted period. The hyperscale data center market is anticipated to have the greatest market size in the banking, financial services, and insurance (BFSI) vertical. BFSI organizations are implementing a variety of cloud techniques as a result of the significant challenges linked to data storage, recovery, and cybersecurity that they must manage along with handling huge amounts of data that must be processed, stored and replicated repeatedly. The ongoing requirement for scalability and data security in hybrid cloud environments drives the demand to automate and manage IT services across heterogeneous clouds.

Regional Snapshots

North America is already a dominant region and is predicted to be in the dominating state during the forecast period. It is home to big telecom and IT firms, dependable suppliers, and end-user sectors that regularly adopt newer technologies for increased company productivity and job efficiency, U.S. owns the largest position in the global market for IT & Telecom. 

Additionally, this region is home to the majority of the top market companies, including, SanDisk Corporation, International Business Machines Corporation, Hewlett-Packard, and Cisco Systems Inc.. According to predictions, North America will hold the top spot in the hyperscale data center market industry for the foreseeable future.

Market Dynamics

Drivers

Due to the growing need for computing and storage to support high-end applications, data centers have recently evolved to be incredibly powerful. The number of business-critical apps is increasing, which has led to a rise in data center complexity. As Web 2.0, e-commerce, social media, big data, cloud computing, hosting of online games, and Hadoop become more widely used, there is a rising need for infrastructure to support higher application performance, energy efficiency, and server density. 

These deployments cannot be supported by traditional data centers, which were designed on separate infrastructures for each workload, including network switches, blade systems, and dedicated computing. Thus, the demand for hyperscale data center installations is anticipated to rise as a result of the need for the inclusion of intelligent and sophisticated data center technologies to meet the growing data center performance need as well as the growth of strategic IT trends. 

Organizations can add resources to their infrastructure for increased performance, capacity, and throughput, allowing high availability, thanks to the hyperscale data center design. The need for hyperscale data centers is expanding as a result of these requirements brought on by an increase in complexity.

As purchases of hardware and software have experienced a dramatic resurgence, public cloud providers are quickly overtaking private cloud providers as the largest buyers of data center infrastructure equipment. The majority of sales in that market category were made by equipment makers who sold directly to cloud service providers. Original design manufacturers (ODM) as a whole outperformed the other vendors in terms of public cloud sales, with Dell, Microsoft, and Inspur closely tied for second. Enterprise sales were led by Microsoft and Dell, then HPE, Cisco, VMware, and IBM.

Restraints

Typically, hyperscale data centers have around 5,000 servers and are above 10,000 square feet in size. A tiny business is unlikely to require so many servers and that much room in order to function. But for a small business, it is not ideal as it would require extra maintenance. Despite the fact that hyperscale data centers use energy incredibly efficiently, the facility's size exerts a tremendous burden on the world's energy supply.

Opportunities

As the network and data center grows more integral to providing cloud services, prediction becomes more crucial. Applications from both consumers and businesses are driving the anticipated tripling of cloud data center traffic. Streaming video, social networking, and Internet search are important for consumers, while ERP, collaboration, analytics, and other digital enterprise software are important for business users. 

A combination of security advancements and the advantages of virtualization and optimization, including as scalability and economies of scale, underpin the increase predicted in the report. Then there is the expansion of the Internet of Things (IoT), which includes connected health and digital utilities, smart cities, connected autos, and scalable computing and storage solutions to meet growing data center demands.

Challenges

Hyperscale data centers, which have a minimum of 5,000 servers and a 10 thousand square foot or bigger footprint, face ongoing challenges from demands for more bandwidth, storage, processing power, and speed. Only new hardware (horizontal scaling) and better data center performance can achieve the rapid scalability that characterizes hyperscale computing (vertical scaling). 

With aggressive installation timeframes, finding the personnel and resources to develop or expand hyperscale data centers is a challenge that only becomes worse as the scale grows. Data centers may be exposed to failures and rework farther down the line as a result of reduced or skipped fiber and system verification testing.

Recent Developments

  • VxRack SDDC Rack Scale Hyper-converged Systems, based on the Dell EMC PowerEdge platform and powered by the VMware Cloud Foundation, was introduced as a result of a partnership between Dell EMC and VMware.

Major Key Players

  • Mellanox Technologies, Inc.
  • SanDisk Corporation
  • Hewlett-Packard Company
  • Avago Technologies
  • Nlyte Software
  • Cavium, Inc.
  • Cisco Systems, Inc.
  • Ericsson
  • Intel Corporation
  • International Business Machines Corporation.

Market Segmentation

By Component

  • Solution
    • Server
    • Storage
    • Networking
    • Software
  • Service
    • Consulting
    • Installation and deployment
    • Maintenance and support

By End-User

  • Cloud providers
  • Colocation providers
  • Enterprises

By Enterprise Size

  • SMEs
  • Large

By Infrastructure

  • Electrical Infrastructure
    • UPS Systems
    • Generators
    • Transfer Switches & Switchgears
    • PDUs
    • Other Electrical Infrastructure
  • Mechanical Infrastructure
    • Cooling Systems
    • Racks
    • Other Mechanical Infrastructure
  • Cooling System
    • CRAC & CRAH Units
    • Chiller Units
    • Cooling Towers, Condensers & Dry Coolers
    • Economizers & Evaporative Coolers
    • Other Cooling Units
  • Cooling Technique
    • Air-Based Cooling Technique
    • Liquid-Based Cooling Technique
  • General Construction
    • Core & Shell Development
    • Installation & Commissioning Services
    • Building & Engineering Design
    • Physical Security
    • DCIM/BMS

By Industry

  • BFSI
  • IT and Telecom
  • Government
  • Energy and Utilities
  • Retail
  • Manufacturing
  • Healthcare
  • Others

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