Data Center Transformation Market To Surpass USD 21.3 Billion By 2034, Says Global Market Insights Inc.

(MENAFN- GlobeNewsWire - Nasdaq) Data Center Transformation industry size is expected to register 9.3% CAGR between 2025 and 2034 propelled by Growing demand for cloud and hybrid environments.

Selbyville, Delaware , Dec. 16, 2024 (GLOBE NEWSWIRE) -- Data Center Transformation market was valued at USD 8.8 billion in 2024 and is projected to be worth USD 21.3 billion by the end of 2034, as per a recent study by Global Market Insights Inc.

As energy costs rise and environmental regulations tighten, the data center industry faces mounting pressure to enhance sustainability. Companies are prioritizing energy-efficient hardware, advanced cooling systems, and renewable energy sources to lower their carbon footprint. The shift toward green data center designs aims to reduce power usage and emissions, aligning with corporate sustainability goals.

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The growing demand for high-performance computing has accelerated the adoption of modular data centers equipped with liquid cooling systems. These setups deliver significant energy savings while maintaining powerful computing capabilities. Energy-efficient infrastructure helps organizations meet environmental regulations and demonstrates their commitment to social responsibility. This market shift is further driven by advancements in power management technologies designed to handle the increasing energy demands of modern workloads, including artificial intelligence (AI) applications.

The rise of IoT and real-time applications has fueled the need for edge computing, which minimizes latency by bringing data processing closer to the data source. This trend has led to a decentralized data center model, enabling faster responses for critical applications. Edge computing solutions, including localized servers and IoT connectivity systems, allow data centers to efficiently manage low-latency, high-speed data processing.

The data center transformation market is divided into three main components: hardware, software, and services. In 2024, services accounted for 41.4% of the market, driven by the demand for expert consulting, integration, and support to manage complex data center transformations. Businesses increasingly rely on professional services to navigate cloud transitions, optimize performance, and bolster security.
The software segment includes tools for optimizing data center operations, such as virtualization and management software. Cloud management solutions and AI-powered applications are especially in demand for overseeing complex IT environments. Meanwhile, the hardware segment continues to expand as organizations invest in advanced servers, storage systems, and networking equipment to modernize their infrastructure.

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By end use, the data center transformation market is categorized into cloud service providers, colocation providers, and enterprises. In 2024, cloud service providers held the largest share at 44.6%, driven by the increasing reliance on scalable, on-demand infrastructure. Colocation providers are also experiencing growth, offering businesses secure and flexible solutions for outsourcing data management.
The United States dominates the North American market, with a strong focus on cloud adoption, hybrid IT, and edge computing. Sustainability initiatives and government incentives further accelerate growth, solidifying the region's leadership in data center transformation.

Data Center Transformation Market Players

Companies including Amazon Web Services (AWS), Cisco Systems, Dell, Digital Realty, Equinix, Google, IBM, Microsoft, Oracle, Schneider Electric are some firms working in data center transformation industry.

The data center transformation market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn) from 2021 to 2034, for the following segments:

Market By Component

• Hardware
  • Storage systems
  • Networking hardware
  • Cooling systems
  • Power distribution units (PDUS) and backup power
  • Security hardware
  • Edge computing hardware
• Services
  • Consolidation services
  • Optimization services
  • Automation services
  • Infrastructure management services
• Software
  • Virtualization software
  • Cloud management platforms
  • Data center infrastructure management
  • Automation & orchestration tools
  • Security software

Market By Data Center Size

• Small
• Medium
• Large

Market By Vertical

• IT and telecom
• BFSI
• Healthcare
• Retail
• Government
• Energy
• Manufacturing
• Others

Market By End Use

• Cloud service providers
• Colocation providers
• Enterprises

About Global Market Insights

Global Market Insights Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider, offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy, and biotechnology.

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