Market Trends of Canada Data Center Rack Industry
Cloud segment to hold major share in the market
- In the early days of the pandemic, after years of increasing adoption, public cloud adoption became mainstream. Canada's public cloud market revenues will likely continue to total USD 5,213.5 million, projected to increase by 46.42% from 2023 to 2027. Revenue is expected to grow to USD 16.4 billion by 2027 for the fourth year in a row. It is worth noting that the public cloud market revenue has increased steadily in recent years.
- Cloud storage in Canada is growing due to the growing demand for cost-effective data backup, storage, and protection across all businesses and the need to manage data generated by the increasing use of mobiles.
- Cloud infrastructure offers capabilities such as increased scalability and flexibility to better serve your customers with minimal downtime. Enterprises are migrating from traditional complex infrastructures to cloud infrastructures, and data center usage is expected to increase during the forecast period.
- With the rise of the digital economy and increased internet usage in Canada, the need for data storage and processing has increased. The proliferation of hybrid cloud service providers has increased demand for colocation services and increased rack utilization.
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Full rack segment to hold major share in the market
- In Canada, full racks hold a large share of the market due to the growing space shortage between various companies.
- Increased use of IoT platforms by varying sectors, such as manufacturing, agriculture, and cities, has contributed to the growing data consumption, which has triggered the demand for full-rack data centers in Canada.
- With the rise of business continuity services 24 hours a day, tier-3 and tier-4 data centers have increasingly become more popular due to the ever-growing number of conglomerates. This increases the use of a number of racks and indicates the use of full racks to incorporate such data.
- In order to better serve their customers, clients have to raise their rack capacities as a result of the population's adoption of other devices. In addition, they have to ensure the availability of the appropriate speeds owing to the 5G launch. As a result, the nation adopted cloud computing, internet penetration, and fiber technologies.
- In January 2023, 93.8% of the Canadian population accessed the internet. Online penetration among individuals in Canada has increased over the past periods, as in 2019, the percentage of people accessing the internet in the country was around 91%. This corresponds to the use of a data center with full racks.
