Data Center Transformation Market To Reach USD 35.73 Billion By 2032| SNS Insider

(MENAFN- GlobeNewsWire - Nasdaq) The Data Center Transformation Market is growing as businesses adopt cloud, AI, and automation to enhance efficiency, scalability, and security.

Pune, March 04, 2025 (GLOBE NEWSWIRE) -- Data Center Transformation Market Size Analysis:

“ The SNS Insider report indicates that the Data Center Transformation Market was valued at USD 13.85 billion in 2023 and is projected to reach USD 35.73 billion by 2032, growing at a CAGR of 11.2% from 2024 to 2032. ”

Rising investments in hybrid cloud infrastructure, edge computing, and sustainability initiatives are key factors driving market expansion.

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Major Players Analysis Listed in this Report are:

• IBM Corporation (IBM Cloud, IBM Storage Solutions)
• Cisco Systems, Inc. (Cisco Data Center Network Solutions, Cisco HyperFlex)
• Dell EMC (Dell EMC PowerEdge Servers, Dell EMC VMAX Storage)
• Microsoft Corporation (Microsoft Azure Cloud Platform, Microsoft Azure Stack)
• Schneider Electric SE (Schneider Electric Data Center Infrastructure, Schneider Electric Software-Defined Data Centers)
• HCL Technologies (HCL Data Center Modernization Services, HCL Cloud Transformation Services)
• Cognizant (Cognizant Data Center Optimization Services, Cognizant Cloud Migration Services)
• Accenture (Accenture Data Center Transformation Services, Accenture Cloud Migration Services)
• Atos (Atos BullSequana Servers, Atos Canopy Cloud Platform)
• Wipro (Wipro Data Center Modernization Services, Wipro Cloud Migration Services)
• Oracle (Oracle Cloud Infrastructure, Oracle Exadata Database Machine)
• Hewlett Packard Enterprise (HPE) (HPE Synergy, HPE Apollo Servers)
• Fujitsu (Fujitsu PRIMERGY Servers, Fujitsu Storage Solutions)
• NTT DATA (NTT DATA Data Center Transformation Services, NTT DATA Cloud Services)
• Infosys (Infosys Data Center Modernization Services, Infosys Cloud Migration Services)
• TCS (TCS Data Center Transformation Services, TCS Cloud Migration Services)
• Tech Mahindra (Tech Mahindra Data Center Modernization Services, Tech Mahindra Cloud Transformation Services)
• Capgemini (Capgemini Data Center Transformation Services, Capgemini Cloud Migration Services)
• DXC Technology (DXC Data Center Modernization Services, DXC Cloud Migration Services)
• Rackspace (Rackspace Fanatical Support for Data Centers, Rackspace Cloud Services)

Data Center Transformation Market Report Scope:

Report Attributes	Details
Market Size in 2023	US$ 13.85 Billion
Market Size by 2032	US$ 35.73 Billion
CAGR	CAGR of 11.2 % From 2024 to 2032
Base Year	2023
Forecast Period	2024-2032
Historical Data	2020-2022
Key Regional Coverage	North America (US, Canada, Mexico), Europe (Eastern Europe [Poland, Romania, Hungary, Turkey, Rest of Eastern Europe] Western Europe [Germany, France, UK, Italy, Spain, Netherlands, Switzerland, Austria, Rest of Western Europe]). Asia Pacific (China, India, Japan, South Korea, Vietnam, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (Middle East [UAE, Egypt, Saudi Arabia, Qatar, Rest of Middle East], Africa [Nigeria, South Africa, Rest of Africa], Latin America (Brazil, Argentina, Colombia Rest of Latin America)
Key Growth Drivers	. Cloud Adoption and Hybrid IT: Catalysts for Data Center Transformation

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By Services Type – Consolidation Services Dominate, Automation Services Registers Fastest Growth

The Consolidation Services segment dominated the market and accounted for significant revenue share in 2023, Enterprises are trying to eliminate duplicate infrastructure and use the optimum resource in alignment with business objectives to stay cost-effective. With the advent of hyperconverged infrastructure, software-defined data centers, and virtualization technologies, the demand for data center consolidation solutions has increased. Workloads are getting pushed to hybrid and multi-cloud environments by organizations for both optimal resource utilization and zero downtime.

AI & ML, and robotic process automation is expected to register the fastest CAGR during the forecasted period. Companies are implementing AI-powered data center management, self-healing systems, and predictive analytics to streamline operations, minimize human involvement, and enhance operational productivity. Smart monitoring tools combined with the power of AI-driven workload balancing turn a traditional data center into a completely self-sustaining ecosystem.

By End-User – Cloud Service Providers Lead, Enterprises Show Fastest Growth

Cloud Service Providers segment dominated the market and accounted for significant revenue share in 2023, with companies including AWS, Microsoft Azure, and Google Cloud further expanding their hyperscale data center footprint. Investments are also going into next-gen data center solutions as the data center landscape converts into multi-cloud environments and edge computing, ensuring low latency and high availability.

The enterprises segment is expected to register the fastest CAGR during the forecasted period, thanks to the swelling use of private and hybrid cloud architectures. Companies are refreshing their on-premise stack with AI-enabled data management, automation, and cybersecurity. This transformation is driven majorly across industries such as healthcare, BFSI, and manufacturing to gain agility, data security, and adhere to compliance.

By Vertical – IT & Telecom Leads, BFSI Emerges as the Fastest Growing Sector

The IT and Telecommunications segment dominated the market and accounted for significant revenue share in 2023, as telecom operators, cloud service providers, and technology enterprises need to process huge data to provide voice and broadband services efficiently. High-performance data centers with better scalability are in demand due to increasing IoT, and real-time analytics. The industry is also seeing huge investments into AI guided network operations, edge computing, and smart data center management.

BFSI is expected to register the fastest CAGR during the forecasted period, driven by the rapid switch of digital banking in the cloud, blockchain security, and AI-driven fraud detection. To comply with regulations and at the same time improve real-time transaction processing, financial institutions are upgrading their data storage and analytics capabilities.

Data Center Transformation Market Segmentation:

By Services Type

• Consolidation Services
• Optimization Services
• Automation Services
• Infrastructure Management Services

By End-user

• Cloud Service Providers
• Colocation Providers
• Enterprises

By Vertical Type

• BFSI
• IT and telecommunications
• Government and defense
• Energy
• Manufacturing
• Others

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By Region – North America Leads, Asia-Pacific Registers Fastest Growth

In 2023, North America dominated the market and held the largest market share in 2023, because of the region having the most cloud service providers, the fastest growing region in AI and Automation, and nations rapidly investing into green data centers. Both the United States and Canada are investing massive amounts into hyperscale and edge data centers to meet the increasing demand created by 5G, IoT, and real-time data processing.

Asia-Pacific is expected to be the fastest-growing region with the fastest CAGR throughout the forecast period, due to several factors like the rapid digitalization process, growing cloud adoption, and support from the government for the development of smart cities and data center infrastructure. Global enterprise cloud, AI-infused data management, and green data center investments are rife in countries such as China, India, and Japan.

Table of Contents – Major Key Points

1. Introduction

2. Executive Summary

3. Research Methodology

4. Market Dynamics Impact Analysis

5. Statistical Insights and Trends Reporting

6. Competitive Landscape

7. Data Center Transformation Market Segmentation, By Services Type

8. Data Center Transformation Market Segmentation, By Vertical Type

9. Data Center Transformation Market Segmentation, By End-user

10. Regional Analysis

11. Company Profiles

12. Use Cases and Best Practices

13. Conclusion

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