Data Center As A Service Market Size, Trends, Report 2023-2032
The global data center as a service market size was estimated at around USD 71.65 billion in 2022 and it is projected to hit around USD 674.27 billion by 2032, growing at a CAGR of 25.13% from 2023 to 2032. The data center as a service market in the United States was accounted for USD 11.5 billion in 2022.
Key Pointers
Report Scope of the Data Center As A Service Market
| Report Coverage | Details |
| Revenue Share of North America in 2022 | 35.94% |
| CAGR of Asia Pacific | 30.27% |
| Revenue Forecast by 2032 | USD 674.27 billion |
| Growth Rate from 2023 to 2032 | CAGR of 25.13% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Companies Covered | IBM Corporation; Microsoft Corporation; Hewlett Packard Enterprise Development LP; Dell Inc.; Alibaba; AT & T; Cloudian; 365 Data Centers; Digital Reality; Cyxtera Technologies.; Digital Ocean, LLC.; Linode LLC.; Equinix, Inc.; Huawei; Amazom.com, Inc. |
The data center as a service (DCaaS) market growth can be attributed to the rising government support and higher spending by key players in the market. Further, the rising use of advanced technologies such as cloud, AI, IoT, and machine learning in data centers offer a wide array of benefits to organizations and is expected to drive the growth.
Governments across the globe are supporting the development of data centers to build energy-efficient and reliable data storage facilities. Furthermore, key players such as Amazon, IBM, Microsoft, and Equinix are making significant investments in the development of advanced data center facilities across the globe. For instance, in November 2022, Amazon Web Services, Inc. announced the launch of the AWS Europe (Spain) Region. This was the eighth AWS infrastructure Region in Europe these are the key factors expected to create lucrative opportunities for the data center as a service market over the forecast period.
Data Center service providers offer data center services on rent or lease to clients. The rapid shift of various end-use companies toward Data Center services instead of settling up expensive data centers is expected to boost the growth of the market over the forecast period. The increasing demand for Data Center solutions is encouraging various industry players to strengthen their Data Center as a service solutions portfolio to improve their brand representation. For instance, in July 2022, Data Holdings acquired Stack41 which provides data center management, cloud & virtual machines, cybersecurity, and other hosting services. The following acquisition is expected to help Data Holding in offering a group of fully outsourced data center services to the customers.
Organization Size Insights
The large organization segment accounted for a market share of 57.92% in 2022. Favorable government regulations to encourage the establishment of data centers and the aggressive investments being made by large companies in hosting private data centers are expected to open new opportunities for the growth of the segment. For instance, in March 2022, Macquarie Telecom Group launched its data center at Macquarie Park Data Centre Campus in the North Zone of Sydney, Australia are the key factors driving the data center as a service demand in the following segment.
The SMEs segment is expected to expand at the highest CAGR of 27.35% during the forecast period. Preferring a third-party data center over on-site IT infrastructure and outsourcing IT infrastructure management allows SMEs to save significantly on their capital expenditures. Government initiatives to promote digitization are prompting SMEs, especially in developing economies, to opt for data center services, which bodes well for the growth of the segment. For instance, Atal Incubation and Digital India, among other initiatives being pursued by the government of India are expected to prompt SMEs in the country to opt for market.
Vertical Insights
The IT & Telecom segment accounted for the largest market share of 23.74% in 2022. Telecommunications companies are particularly managing their infrastructure needs by establishing their own data centers using a private cloud for both core and non-core networking operations. Telecommunications companies are also partnering with data center providers to expand their business portfolio. For instance, in November 2021, Telenor partnered with Google Cloud to digitally transform its incumbent infrastructure by integrating AI and ML to enhance its technical capabilities are the key factors expected to drive the demand for data center as a service market in the following segment.
The healthcare segment is anticipated to expand at a CAGR of 30.55% during the forecast period. Aggressive development of AI-powered diagnostics tools, telemedicine solutions, and Internet of Medical Things (IoMT), is expected to create robust opportunities for data center solution providers. Hybrid multi-cloud practices are becoming more popular in the healthcare industry vertical to isolate certain workloads from the public domain, especially to ensure adequate data security and privacy protection when it comes to sensitive patient health information.
Infrastructure Insights
The servers segment accounted for the largest market share of 59.16% in 2022. Academic institutions, defense agencies, and government agencies are aggressively adopting new, innovative solutions based on the latest digital technologies, such as artificial intelligence (AI), internet of things (IoT), and machine learning (ML), thereby driving the need for sophisticated, hyper-converged IT infrastructure comprising high-performance computing servers to run complex software-defined solutions and process large volumes of data. The strong emphasis on maintaining a pool of servers to ensure adequate processing power to process large volumes of data bodes well for the growth of the segment over the forecast period.
The storage segment is anticipated to expand at a CAGR of 28.03% during the forecast period. the rising volumes of computing data across the globe are also driving the demand for storage systems to ensure quick access to the desired data. Several countries are focusing on establishing their own virtual data storage systems to reduce their reliance on overseas organizations and strengthen data security. Infrastructure software enables the digital storage system to control, monitor, secure, and manage data without incurring any excessive operational costs are the primary factors expected to drive the data center as a service market demand.
Regional Insights
North America dominated the market and accounted for revenue share of 35.94% in 2022. In North America, data center facilities are progressively expanding in line with the continued advances in the latest technologies, such as big data and the Internet of Things (IoT). These technologies require advanced facilities to store, process, and manage large volumes of data. Furthermore, the presence of key data center service providers in the region, such as Amazon Web Services, Inc.; Microsoft Corporation; IBM Corporation; and Alphabet Inc., is a major factor driving the market growth in North America.
Asia Pacific is anticipated to expand as the fastest developing regional market at a CAGR of 30.27%. The demand for data center is rising due to the growing development and infrastructure projects in the Asia Pacific region. Further, the higher volume of dat a generated by large e-commerce customer base, extensive telecom networks, and greater demand from industry players in the region to manage higher traffic flows in servers. For instance, in February 2021, Linode LLC announced its plan to expand its services for its faster-growing customer base in APAC by adding a new GPU instance to its data center facility in Singapore. The new capability offers low-latency features for near-real-time data analysis, image processing, AI, video transcoding, and other data and processing applications. Furthermore, the growing number of startups and SMEs in the region is expected to fuel the adoption of the data center as a service in the region.
Data Center As A Service Market Segmentations:
By Infrastructure
By Organization Size
By Vertical
By Regional
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Infrastructure Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Data Center As A Service Market
5.1. COVID-19 Landscape: Data Center As A Service Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Data Center As A Service Market, By Infrastructure
8.1. Data Center As A Service Market, by Infrastructure, 2023-2032
8.1.1 Servers
8.1.1.1. Market Revenue and Forecast (2020-2032)
8.1.2. Storage
8.1.2.1. Market Revenue and Forecast (2020-2032)
8.1.3. Networking
8.1.3.1. Market Revenue and Forecast (2020-2032)
Chapter 9. Global Data Center As A Service Market, By Organization Size
9.1. Data Center As A Service Market, by Organization Size, 2023-2032
9.1.1. SMEs
9.1.1.1. Market Revenue and Forecast (2020-2032)
9.1.2. Large Enterprises
9.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 10. Global Data Center As A Service Market, By Vertical
10.1. Data Center As A Service Market, by Vertical, 2023-2032
10.1.1. Retail
10.1.1.1. Market Revenue and Forecast (2020-2032)
10.1.2. BFSI
10.1.2.1. Market Revenue and Forecast (2020-2032)
10.1.3. IT & Telecom
10.1.3.1. Market Revenue and Forecast (2020-2032)
10.1.4. Healthcare
10.1.4.1. Market Revenue and Forecast (2020-2032)
10.1.5. Manufacturing
10.1.5.1. Market Revenue and Forecast (2020-2032)
10.1.6. Others
10.1.6.1. Market Revenue and Forecast (2020-2032)
Chapter 11. Global Data Center As A Service Market, Regional Estimates and Trend Forecast
11.1. North America
11.1.1. Market Revenue and Forecast, by Infrastructure (2020-2032)
11.1.2. Market Revenue and Forecast, by Organization Size (2020-2032)
11.1.3. Market Revenue and Forecast, by Vertical (2020-2032)
11.1.4. U.S.
11.1.4.1. Market Revenue and Forecast, by Infrastructure (2020-2032)
11.1.4.2. Market Revenue and Forecast, by Organization Size (2020-2032)
11.1.4.3. Market Revenue and Forecast, by Vertical (2020-2032)
11.1.5. Rest of North America
11.1.5.1. Market Revenue and Forecast, by Infrastructure (2020-2032)
11.1.5.2. Market Revenue and Forecast, by Organization Size (2020-2032)
11.1.5.3. Market Revenue and Forecast, by Vertical (2020-2032)
11.2. Europe
11.2.1. Market Revenue and Forecast, by Infrastructure (2020-2032)
11.2.2. Market Revenue and Forecast, by Organization Size (2020-2032)
11.2.3. Market Revenue and Forecast, by Vertical (2020-2032)
11.2.4. UK
11.2.4.1. Market Revenue and Forecast, by Infrastructure (2020-2032)
11.2.4.2. Market Revenue and Forecast, by Organization Size (2020-2032)
11.2.4.3. Market Revenue and Forecast, by Vertical (2020-2032)
11.2.5. Germany
11.2.5.1. Market Revenue and Forecast, by Infrastructure (2020-2032)
11.2.5.2. Market Revenue and Forecast, by Organization Size (2020-2032)
11.2.5.3. Market Revenue and Forecast, by Vertical (2020-2032)
11.2.6. France
11.2.6.1. Market Revenue and Forecast, by Infrastructure (2020-2032)
11.2.6.2. Market Revenue and Forecast, by Organization Size (2020-2032)
11.2.6.3. Market Revenue and Forecast, by Vertical (2020-2032)
11.2.7. Rest of Europe
11.2.7.1. Market Revenue and Forecast, by Infrastructure (2020-2032)
11.2.7.2. Market Revenue and Forecast, by Organization Size (2020-2032)
11.2.7.3. Market Revenue and Forecast, by Vertical (2020-2032)
11.3. APAC
11.3.1. Market Revenue and Forecast, by Infrastructure (2020-2032)
11.3.2. Market Revenue and Forecast, by Organization Size (2020-2032)
11.3.3. Market Revenue and Forecast, by Vertical (2020-2032)
11.3.4. India
11.3.4.1. Market Revenue and Forecast, by Infrastructure (2020-2032)
11.3.4.2. Market Revenue and Forecast, by Organization Size (2020-2032)
11.3.4.3. Market Revenue and Forecast, by Vertical (2020-2032)
11.3.5. China
11.3.5.1. Market Revenue and Forecast, by Infrastructure (2020-2032)
11.3.5.2. Market Revenue and Forecast, by Organization Size (2020-2032)
11.3.5.3. Market Revenue and Forecast, by Vertical (2020-2032)
11.3.6. Japan
11.3.6.1. Market Revenue and Forecast, by Infrastructure (2020-2032)
11.3.6.2. Market Revenue and Forecast, by Organization Size (2020-2032)
11.3.6.3. Market Revenue and Forecast, by Vertical (2020-2032)
11.3.7. Rest of APAC
11.3.7.1. Market Revenue and Forecast, by Infrastructure (2020-2032)
11.3.7.2. Market Revenue and Forecast, by Organization Size (2020-2032)
11.3.7.3. Market Revenue and Forecast, by Vertical (2020-2032)
11.4. MEA
11.4.1. Market Revenue and Forecast, by Infrastructure (2020-2032)
11.4.2. Market Revenue and Forecast, by Organization Size (2020-2032)
11.4.3. Market Revenue and Forecast, by Vertical (2020-2032)
11.4.4. GCC
11.4.4.1. Market Revenue and Forecast, by Infrastructure (2020-2032)
11.4.4.2. Market Revenue and Forecast, by Organization Size (2020-2032)
11.4.4.3. Market Revenue and Forecast, by Vertical (2020-2032)
11.4.5. North Africa
11.4.5.1. Market Revenue and Forecast, by Infrastructure (2020-2032)
11.4.5.2. Market Revenue and Forecast, by Organization Size (2020-2032)
11.4.5.3. Market Revenue and Forecast, by Vertical (2020-2032)
11.4.6. South Africa
11.4.6.1. Market Revenue and Forecast, by Infrastructure (2020-2032)
11.4.6.2. Market Revenue and Forecast, by Organization Size (2020-2032)
11.4.6.3. Market Revenue and Forecast, by Vertical (2020-2032)
11.4.7. Rest of MEA
11.4.7.1. Market Revenue and Forecast, by Infrastructure (2020-2032)
11.4.7.2. Market Revenue and Forecast, by Organization Size (2020-2032)
11.4.7.3. Market Revenue and Forecast, by Vertical (2020-2032)
11.5. Latin America
11.5.1. Market Revenue and Forecast, by Infrastructure (2020-2032)
11.5.2. Market Revenue and Forecast, by Organization Size (2020-2032)
11.5.3. Market Revenue and Forecast, by Vertical (2020-2032)
11.5.4. Brazil
11.5.4.1. Market Revenue and Forecast, by Infrastructure (2020-2032)
11.5.4.2. Market Revenue and Forecast, by Organization Size (2020-2032)
11.5.4.3. Market Revenue and Forecast, by Vertical (2020-2032)
11.5.5. Rest of LATAM
11.5.5.1. Market Revenue and Forecast, by Infrastructure (2020-2032)
11.5.5.2. Market Revenue and Forecast, by Organization Size (2020-2032)
11.5.5.3. Market Revenue and Forecast, by Vertical (2020-2032)
Chapter 12. Company Profiles
12.1. IBM Corporation
12.1.1. Company Overview
12.1.2. Product Offerings
12.1.3. Financial Performance
12.1.4. Recent Initiatives
12.2. Microsoft Corporation
12.2.1. Company Overview
12.2.2. Product Offerings
12.2.3. Financial Performance
12.2.4. Recent Initiatives
12.3. Hewlett Packard Enterprise Development LP
12.3.1. Company Overview
12.3.2. Product Offerings
12.3.3. Financial Performance
12.3.4. Recent Initiatives
12.4. Dell Inc.
12.4.1. Company Overview
12.4.2. Product Offerings
12.4.3. Financial Performance
12.4.4. Recent Initiatives
12.5. Alibaba
12.5.1. Company Overview
12.5.2. Product Offerings
12.5.3. Financial Performance
12.5.4. Recent Initiatives
12.6. AT & T
12.6.1. Company Overview
12.6.2. Product Offerings
12.6.3. Financial Performance
12.6.4. Recent Initiatives
12.7. Cloudian
12.7.1. Company Overview
12.7.2. Product Offerings
12.7.3. Financial Performance
12.7.4. Recent Initiatives
12.8. 365 Data Centers
12.8.1. Company Overview
12.8.2. Product Offerings
12.8.3. Financial Performance
12.8.4. Recent Initiatives
12.9. Digital Reality
12.9.1. Company Overview
12.9.2. Product Offerings
12.9.3. Financial Performance
12.9.4. Recent Initiatives
12.10. Cyxtera Technologies.
12.10.1. Company Overview
12.10.2. Product Offerings
12.10.3. Financial Performance
12.10.4. Recent Initiatives
Chapter 13. Research Methodology
13.1. Primary Research
13.2. Secondary Research
13.3. Assumptions
Chapter 14. Appendix
14.1. About Us
14.2. Glossary of Terms
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers