March 22, 2019: Adroit Market Research today published a study on the “Global Hyperscale Data Center Market Size 2017 by Solution (Server, Storage, Networking, Software and Services), by Workload (Enterprise and Consumer), Region and Forecast 2018 to 2025”. The report provides various key strategies adopted by the leading players as the demand is growing from Asia-Pacific region. Current hyperscale data center market share in been derived on the basis of thorough understanding of the forecast and dynamics of data centers in various geographies.

The global hyperscale data center market size was USD 583 billion in 2017 and is anticipated to grow with a growth rate of 12.1% during the forecast period owing to the growing demand of cloud computing technologies. As the volume of data is growing explosively year by year, the need for its storage is growing simultaneously. This mounting pressure of handling the data load has driven the hyperscale data center market over past few years. Started by few hyperscalers in the US region, new hyperscalers now are spread across various geographies to meet the new data requirements. The major influence to this market has been the advent of Internet of Things (IoT). The amount of data generated by the connected devices and the agility to handle this data can only be fulfilled by hyperscale data centers. Also, rapid growth of Artificial Intelligence (AI) across various industry vertical have boosted the demand for high performance computing hardware. Introduction of 5G will enable a key shift towards software defined infrastructure, thus driving the hyperscale data center market in the coming years. Trending technologies such as connected cars, virtual reality (VR) and augmented reality (AR) applications will have a positive influence on the hyperscale data center market.

The major challenges that could hinder the global hyperscale data center market are: the need of huge capital investments, high power consumption and increasing carbon emissions. Operators have been constantly trying different methods to improve the power efficiency by implementing new equipment designs and cooling systems. But for the past few years, the trend line of improving efficiency has flattened and cannot climb any further. Also, most of players in these market are multi-billion companies with enough capital to setup new data centers across different geographies in the world. Thus, the need for huge capital investment could be a strong entry barrier for a new player in the hyperscale data center market. Additionally, recent trend shows that cloud operators are shifting their focus towards leasing the data center space rather than setting up their own data center.

On the basis of solution, the hyperscale data center market can be further divided into server, storage, networking, software and services. Out of these, the server segment is expected to grow with the highest growth rate of 12.9% in the forecast period owing to the increased demand of servers across various geographical regions. However, in 2017, the highest market share belonged to the software segment because of rapid adoption of software defined networks (SDN).  

Based on the workload, the hyperscale data center market is further segmented into enterprise and consumer workloads. Revenue-wise, the share for enterprise workload was the largest in 2017 and is expected to dominate until the forecast period owing to the huge demand of cloud services in the enterprise world. The consumer workload segment which is mainly dominated by the video streaming services, is anticipated to grow with the highest growth rate of 14.6% in the forecast period owing to the growing demand of online video streaming services across the world.

The major players in this industry include Facebook, Microsoft, Google, Apple, Dell, Intel, Lenevo, Equinix and others. According to the Cisco Global Cloud Index report, the hyperscale data centers are poised to grow from 338 in 2016 to 628 by 2021 representing 53 percent of all the data center servers by 2021.

Key Segments of the Global Hyperscale Data Center Market

Solution Overview, 2015-2025 (USD Billion)

• Server
• Storage
• Networking
• Software
• Services

Workload Overview, 2015-2025 (USD Billion)

• Enterprise
• Consumer

Regional Overview, 2015-2025 (USD Billion)

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • Rest of Europe
• Asia-Pacific
  • Japan
  • China
  • Rest of Asia-Pacific
• Latin America
  • Brazil
  • Rest of Latin America
• Middle-East & Africa World