by The Global Hyperscale Data Center Market is estimated to be valued at US$87.87 billion in 2023 and is expected to exhibit a CAGR of 30.9% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Hyperscale data centers are large-scale facilities that are designed to support the rapid growth of digital information and the demand for cloud computing services. These data centers provide significant advantages in terms of storage capacity, processing power, and cost-efficiency. With the proliferation of internet-enabled devices and the increasing reliance on cloud-based services, the need for hyperscale data centers has become crucial to meet the growing demand for data storage and processing.
Market Key Trends:
One key trend in the hyperscale data center market is the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies. AI and ML require massive amounts of computational power and storage, which can be efficiently provided by hyperscale data centers. These technologies are being leveraged by various industries, such as healthcare, finance, and manufacturing, to enhance operations, improve decision-making, and drive innovation. As a result, the demand for hyperscale data centers capable of supporting AI and ML workloads is expected to witness significant growth in the coming years.
Key Players: Aecom, DPR Construction, Holder Construction, Jacobs, M+W Group (Exyte), Bouygues Construction, Mercury, Arup, and Benthem Crouwel Architects.
Porter’s Analysis
Threat of New Entrants: The hyperscale data center market is characterized by high entry barriers, including the high initial investment required for infrastructure setup and maintenance. Additionally, the presence of established players with strong brand recognition and economies of scale further limits the threat of new entrants.
Bargaining Power of Buyers: The bargaining power of buyers in the hyperscale data center market is relatively high. This is primarily due to the increasing number of options available to customers and their ability to compare and choose from various service providers. As a result, buyers have significant negotiation power to demand competitive pricing and value-added services.
Bargaining Power of Suppliers: The bargaining power of suppliers in the hyperscale data center market is moderate. While there are multiple suppliers for equipment, software, and infrastructure components, the limited number of specialized suppliers and the need for high-quality and technologically advanced products give suppliers some bargaining power.
Threat of New Substitutes: The threat of new substitutes in the hyperscale data center market is relatively low. The unique features and functionalities offered by hyperscale data centers, such as scalability, cost-effectiveness, and high performance, make it challenging for substitute products or services to replicate these advantages.
Competitive Rivalry: The competitive rivalry in the hyperscale data center market is intense. The market is highly consolidated, with a few dominant players holding a significant market share. Intense competition stems from the constant need to innovate and offer differentiated services to attract and retain customers. Price competition also plays a role in intensifying the rivalry among players.
Key Takeaways
The Hyperscale Data Center Market Growth is expected to witness high, exhibiting a CAGR of 30.9% over the forecast period from 2023 to 2030. This growth is driven by increasing demand for cloud-based services, rising adoption of big data analytics, and the need for efficient storage and processing capabilities. As organizations strive to manage and analyze massive amounts of data, the demand for hyperscale data centers is expected to surge.
In terms of regional analysis, North America is anticipated to be the fastest-growing and dominating region in the hyperscale data center market. This can be attributed to the presence of tech giants, high internet penetration, and the increasing adoption of cloud-based services in the region. Additionally, favorable government initiatives and investments in digital infrastructure further contribute to the market growth in North America.
Key players operating in the hyperscale data center market include Aecom, DPR Construction, Holder Construction, Jacobs, M+W Group (Exyte), Bouygues Construction, Mercury, Arup, and Benthem Crouwel Architects. These key players offer a wide range of services, including data center design, construction, and maintenance, contributing to the growth and development of the hyperscale data center market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
