Managed Data Center Services Market Size
| Study Period | 2021 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 20.50 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Managed Data Center Services Market Analysis
The managed data center services market is expected to register a CAGR of 20.5% over the forecast period. According to a recent AFCOM State of the Data Center Industry study, the percentage of respondents with more than 1,000 employees increased by 12 points from the previous year to 54%. Additionally, they observed a fantastic variety of industries in the report from the prior year. Healthcare and pharmaceuticals, education, computer/data processing/IT services, finance/banking/investment, and construction/engineering/architecture are the top five sectors that are represented.
- Enterprises could move away from physical infrastructure owing to managed data center services, enabling overhead cost savings. The cost of owning a data center is considerable, there are many linked devices on the market, and the metaverse concept is just starting to take off as a major element driving industry expansion. It is also expected that data center services will become more popular because they offer businesses a cheap way to expand their IT operations without having to invest in more hardware.
- The market is expanding due to rising cyber threats and the possibility of data leakage. One of the most popular managed services for data protection is replication. One of the most popular managed services for data protection is replication. Cyber hardening reduces attack surfaces and prevents malware from spreading uniformly. Data center security teams eliminate a whole class of threats by hardening software binaries.
- Business continuity and availability are two of the main data center services issues. Applications used by data centers may become inaccessible if there is a provider or WAN outage. Unexpected downtimes are anticipated to have significant consequences, even though a service-level agreement covers the availability of data center services. Additionally, as data center services are a part of cloud computing, they are susceptible to various online dangers. It is expected that data security and availability would hinder industry expansion.
- The COVID-19 outbreak caused the halting of numerous operations in numerous industries and the construction of multiple data centers. Due to social conventions favoring social distance and corporate work-from-home cultures, this had little to no effect on the DCaaS industry. Due to increasing data volumes, numerous businesses were forced to move their entire IT infrastructure to the cloud due to the pandemic outbreak. Many businesses are likely to choose data centers as a service because they have far greater volume and data handling capacity than on-premises data centers.
- A poll of more than 1,400 IT executives in the previous year by Rackspace Technology and Google Cloud found that 51% of them said their infrastructure is currently in the cloud, and 49% said they have plans to move workloads from on-premises infrastructure to the cloud. Additionally, the epidemic raised worldwide data volumes by encouraging more people to use social media and other digital tools. The popularity of data centers as a service is projected to be fueled by the growing shift toward cloud computing. So, the COVID-19 outbreak was good for the market. During the pandemic, the market grew, and this is expected to continue for the rest of the forecasted period.
Managed Data Center Services Market Trends
This section covers the major market trends shaping the Managed Data Center Services Market according to our research experts:
Retail Industry to Dominate the Market
- In the modern world, data centers are essential elements of retail operations since they provide digital services and online customer experiences. When interacting with brands, whether online or in a physical store, consumers now demand a highly tailored and pertinent experience. A lot of data and information are needed to customize a campaign or experience to meet the needs of specific customers.
- E-commerce and online retail are essentially an extension of traditional and physical shopping. Numerous businesses only operate online and digitally, with eBay and Amazon being the two most prominent players. Now that consumers are utilizing smartphones more frequently for in-store comparison shopping, large brick-and-mortar retailers are placing a lot of emphasis on their online experiences and rolling out more mobile shopping apps.
- Personalizing the shopping experience means customers' transaction history is recorded so that the retailer can provide recommendations. Due to the increasing number of shoppers, robust data centers have become mandatory.
- A major area of concentration for implementing new technologies has emerged in retail. With its Amazon Go concept store, which lets customers take items and walk out without a cashier, Amazon has transitioned from an online retailer to a physical store. Sensors on the merchandise and the shopper's mobile app are used to track transactions. The more contemporary or cutting-edge solutions are in addition to some of the usual data center uses in retail that many companies are just beginning to experiment with. Innovative digital signage, like that based on Magic Mirror AR technology, is a prime example.
Asia-Pacific to Witness the Highest Growth
- The expansion of data centers to handle enormous data volumes can be attributed to it. Additionally, the region's growing use of digital services and wide telecom network are anticipated to support market expansion. In addition, the region's expanding startup and SME population is expected to accelerate the use of data center services. Asia-Pacific is seeing a rise in the amount of data made by digital products and services. This is because the region's population is growing and e-commerce is on the rise.
- There are two significant data center marketplaces in the Asia Pacific region: those that cater to local demand, like those in Hong Kong and Singapore, and those that cater to domestic demand, like those in Tokyo, Shanghai, and Australia. Indonesia and India are interesting Tier II markets because their populations are growing quickly and they need more data center space.
- The market for data centers in Sydney is also still expanding. Despite its remote location, Australia has a strong demand due to its highly digitalized populace. The world's highest cloud use is found in Australia. In Australia, there are numerous international corporations.
- India is home to the second-largest and one of the youngest populations in the world. They must deal with a massive data surge. Many people own multiple cell phones. India only has 252 MW of data center power, but this number will rise dramatically. In India, particularly in Mumbai, there are a lot of buildings for large data centers.
- Cloud technology is slowly gaining momentum in Asia-Pacific. Thus, the demand for managed services is increasing due to speed and agility. It will give a boost to cloud-based deployments.
- Regulators play a crucial role in enabling-or impeding-the growth of managed data center services. While some APAC regulators are clarifying outsourcing rules and guidelines to help firms achieve compliance, regulatory restrictions and cloud adoption blockers still exist.
Managed Data Center Services Industry Overview
The market for managed data center services is fragmented, with the majority of the giants providing services like data center management and enterprise network services, resulting in business continuity. Some major players in the market are Fujitsu Ltd., Cisco Systems Inc., Dell EMC, and IBM Corporation. New companies are also entering the market as the entry barrier is quite low.
In November 2022, in an era of growing connectedness and unpredictability, Fujitsu Limited announced plans to establish a new center for research and development in Tel Aviv, expediting the hiring of top personnel to drive innovation in data and security.
In October 2022, Cisco, a US-based global provider of technology services and telecom equipment, said it would invest in a dedicated data center in India for WebEx, its suite of services for remote conferencing, file sharing, and call center operations.
Managed Data Center Services Market Leaders
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Fujitsu Ltd
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Cisco Systems Inc.
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Dell EMC
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IBM Corporation
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AT&T Corporation
*Disclaimer: Major Players sorted in no particular order
Managed Data Center Services Market News
- October 2022: Sequretek and Pi Data Centers have formed a strategic relationship. Pi Data Centers is India's first greenfield hyperscale UPTIME Institute Tier IV data center and enterprise cloud provider. Pi Data Centers currently offers managed, cloud, and data center services to aid in the spread of digitization.Pi's enterprise customers may now benefit from enhanced detection, seamless integration of all data center instances, effective log monitoring, automated incident response, and mitigation owing to this relationship and the cutting-edge cyber security products from Sequretek.
- March 2022: Microsoft announced that Hyderabad, Telangana, would be the site of its newest data center area. This strategic investment will enhance the world's most extensive cloud infrastructure, which aligns with Microsoft's goal of assisting customers in thriving in a cloud- and AI-enabled digital economy.
Managed Data Center Services Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Market Definition and Scope
- 1.2 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 Industry Stakeholder Analysis
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4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Bargaining Power of Suppliers
- 4.3.2 Bargaining Power of Consumers
- 4.3.3 Threat of New Entrants
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Increasing Cyber Attacks and Risk of Data Leaks is Causing the Market to Grow
- 5.1.2 Need for Management of Large Volume of Data Generated is Expanding the Market
- 5.1.3 Rising use of Data center service in Retail Industry to boost the market.
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5.2 Market Restraints
- 5.2.1 Lack of Skilled and Dedicated Personnel is Hindering the Market Growth
- 5.3 Impact of Covid-19 on Data Center Services Market
6. KEY TECHNOLOGY INVESTMENTS
- 6.1 Cloud Technology
- 6.2 Artificial Intelligence
- 6.3 Cyber Security
- 6.4 Digital Services
7. MARKET SEGMENTATION
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7.1 By Type
- 7.1.1 Managed Storage
- 7.1.2 Managed Hosting
- 7.1.3 Managed Collocation
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7.2 By Deployment Type
- 7.2.1 Cloud
- 7.2.2 On-premise
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7.3 By End-user Industry
- 7.3.1 BFSI
- 7.3.2 Energy
- 7.3.3 Retail
- 7.3.4 Healthcare
- 7.3.5 Manufacturing
- 7.3.6 Other End-user Industries
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7.4 Geography
- 7.4.1 North America
- 7.4.1.1 United States
- 7.4.1.2 Canada
- 7.4.1.3 Rest of North America
- 7.4.2 Europe
- 7.4.2.1 Germany
- 7.4.2.2 United Kingdom
- 7.4.2.3 France
- 7.4.2.4 Spain
- 7.4.2.5 Rest of Europe
- 7.4.3 Asia-Pacific
- 7.4.3.1 China
- 7.4.3.2 Japan
- 7.4.3.3 India
- 7.4.3.4 Rest of Asia-Pacific
- 7.4.4 Latin America
- 7.4.4.1 Brazil
- 7.4.4.2 Argentina
- 7.4.4.3 Rest of Latin America
- 7.4.5 Middle East and Africa
- 7.4.5.1 UAE
- 7.4.5.2 Saudi Arabia
- 7.4.5.3 South Africa
- 7.4.5.4 Rest of Middle East and Africa
8. COMPETITIVE LANDSCAPE
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8.1 Company Profiles
- 8.1.1 Fujitsu Ltd
- 8.1.2 Cisco Systems Inc.
- 8.1.3 Dell EMC
- 8.1.4 IBM Corporation
- 8.1.5 AT&T Inc.
- 8.1.6 HP Development Company LP
- 8.1.7 Microsoft Corporation
- 8.1.8 Verizon Communications Inc.
- 8.1.9 Dell Inc.
- 8.1.10 Rackspace Inc.
- 8.1.11 TCS Limited
- 8.1.12 Deutsche Telekom AG
- *List Not Exhaustive
9. INVESTMENT ANALYSIS
10. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityManaged Data Center Services Industry Segmentation
A managed data center is a type of data center model that is deployed, managed, and monitored by a third-party data center service provider. The services rendered by these types of data centers range from network services to disaster recovery-managed backup. They can be deployed both in the cloud and on-premise. It results in complete hybrid IT management.
The managed data center services market can be divided into four segments: type (managed storage, managed hosting, and managed colocation), deployment type (cloud, on-premise), end-user industry (BFSI, energy, healthcare, manufacturing, retail, and other end-user industries), geography (North America (United States, Canada), Europe (Germany, United Kingdom, France, Spain, and Rest of Europe), Asia Pacific (India, China, Japan, and Rest of Asia-Pacific), and Latin America (Brazil).
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By Type | Managed Storage | |
| Managed Hosting | ||
| Managed Collocation | ||
| By Deployment Type | Cloud | |
| On-premise | ||
| By End-user Industry | BFSI | |
| Energy | ||
| Retail | ||
| Healthcare | ||
| Manufacturing | ||
| Other End-user Industries | ||
| Geography | North America | United States |
| Canada | ||
| Rest of North America | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Spain | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| Japan | ||
| India | ||
| Rest of Asia-Pacific | ||
| Geography | Latin America | Brazil |
| Argentina | ||
| Rest of Latin America | ||
| Geography | Middle East and Africa | UAE |
| Saudi Arabia | ||
| South Africa | ||
| Rest of Middle East and Africa |
Managed Data Center Services Market Research FAQs
What is the current Managed Data Center Services Market size?
The Managed Data Center Services Market is projected to register a CAGR of 20.5% during the forecast period (2024-2029)
Who are the key players in Managed Data Center Services Market?
Fujitsu Ltd, Cisco Systems Inc., Dell EMC, IBM Corporation and AT&T Corporation are the major companies operating in the Managed Data Center Services Market.
Which is the fastest growing region in Managed Data Center Services Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Managed Data Center Services Market?
In 2024, the North America accounts for the largest market share in Managed Data Center Services Market.
What years does this Managed Data Center Services Market cover?
The report covers the Managed Data Center Services Market historical market size for years: 2021, 2022 and 2023. The report also forecasts the Managed Data Center Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Managed Data Center Services Industry Report
Statistics for the 2024 Managed Data Center Services market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Managed Data Center Services analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
