Data Center Outsourcing Market
Data Center Outsourcing Market - By Vertical, By Service Type and Global Region Market Size, Trends, Share & Forecast 2020-2025Request Sample Request Discount
The global data center outsourcing market size was estimated at USD 145.2 billion in 2019 and is expected grow with a CAGR of 5.2% over the forecasted period of 2020 to 2025. The worldwide market is significantly determined by the rapid adoption of digitalization. There are some factors that may fuel the innovation and connectors market. They are- the growing volume of big data and the surge in need to reduce the cost associated with IT operations.
The business will present promising development possibilities, which are stemmed by the blend of various factors. Some of these factors are, the rapid increase in data traffic and the surge in growth of e-commerce business, the banking business, and cloud-based services.
Data center outsourcing is the practice of outsourcing the day-to-day management as well as provisioning of storage and computing resources to a third party provider with the expertise in deploying and maintaining data center outsourcing facilities. It enables the enterprises to flexibly manage their ICT infrastructures, without compromising the reliability and security.
The market is seeing extensive consolidations, geographical expansions, and acquisitions. These are embraced by the market players to enhance their competitiveness. This is to accomplish upgraded administration portfolios and to generate new revenue streams. For instance, in January 2021, EdgeConneX, one of the leaders in Edge data center development and a member of Oracle PartnerNetwork (OPN), announces the integration of its 33rd data center market to its portfolio of global Edge data center. This EdgeConneX Santiago, SCL01, facility offers local Santiago businesses as well as international service providers with 7MWs of low-latency and high-quality data center capacity.
Surge in investments in the Asia-Pacific region to drive the faster adoption of cloud computing solutions is fortifying the Asia Pacific market.
The North America area may surface as a main district over the estimated time frame. The provincial market development may be due to the well-built Information Communication and Technology (ICT) industry in countries such as the U.S. and Canada. In addition to this, new openings of data centers along with the increased investments for data center outsourcing pushes demand for data center outsourcing and driving the market growth in North America. For instance, in February 2020, Google revealed the expansion plans for the year 2020. The plan was projected to enable Google to increase its reach across 11 US states. Also, the company announced to invest about $10 billion in facilitating the development of data centers in states such as Massachusetts, California, Georgia, Colorado, and Nebraska.
In addition, the rise in adoption of advanced technologies the market in Europe is very dynamic as well as innovation driven. The market is expected to experience significant growth rate in countries such as United Kingdom, Germany, and France.
Service Type Insights:
In view of service type, the market has been portioned into data center application outsourcing, enterprise application outsourcing, network application outsourcing, and others. The data center application outsourcing section is the biggest portion, regarding income, and may rule the innovation field, as far as size, by 2025.
The enterprise application outsourcing, network application outsourcing sections are ready to observe critical development rates. The need to manage, enhance and maintain the packaged or custom application software significantly drives growth of the enterprise application outsourcing segment.
The key players’ consolidations, collaborations, and acquisitions, to accomplish cutting edge innovation licenses, have advanced as a significant piece of the current data center outsourcing industry. For example, in April 2019, Accenture and Google Cloud, the part of Alphabet Inc. collaborated on the solutions to help enterprises improve and modernize their customers’ experiences in the main areas such as improving data management, enabling multi-channel customer interactions, and creating services for hyper-personalization in sales, marketing, and services.
Industry Vertical Insights
In light of industry vertical, the market is divided into IT & telecommunication, BFSI, healthcare & life sciences, travels & logistics, media & entertainment, and others. The BFSI industry fragment is the biggest section and will overwhelm the application field, by 2025.
The IT & telecommunication section would observe a quick movement as far as CAGR in contrast with its other sales partners. This is accredited to the fact that the IT & telecommunication industry is expanding to efficiently and effectively manage the growing amount of resources and data being generated, which in turn increases maintenance and operational cost of data centers leading to the complexities. This factor has boosted adoption of data center outsourcing services among mid-sized and large enterprises in IT & telecommunication industry.
The developing entrance of telecom foundation in creating economies, for example, China and India, is owing to the critical development of the innovation in the locale. Information transmission and correspondence administrations represent the significant portions of the telecom application field.
Competitive Market Insights
The key business members of the market are Hewlett Packard Enterprises, Dell, Infosys, Tata Consultancy Services, Tech Mahindra, IBM Corporation, HCL, Accenture, Atos, Capgemini, Cognizant, Fujitsu Ltd., Unisys, Wipro, Oracle Corporation, and T-systems. Due to the rising demand to facilitate the faster adoption of data center outsourcing solutions & services, these marker players are increasingly participating in the competition.
Custom Research Requirement? Questions to ask?Get in touch
Custom Research requirement.