Hyperscale data centers are large-scale data centers that house extensive computing capabilities and help in reducing cooling and power costs. Hyperscale data centers provide high scalability and efficient utilization of IT resources by locating servers and networking equipment in close proximity. With the rise of cloud computing, hyperscale data centers help cloud service providers offer Infrastructure-as-a-Service (IaaS), Software-as-a-Service (SaaS), and Platform-as-a-Service (PaaS). The growing need for cloud services from various organizations has boosted the demand for hyperscale data center facilities.
The global Hyperscale Data Center Market is estimated to be valued at US$ 87.87 Bn in 2023 and is expected to exhibit a CAGR of 15.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights. Market Opportunity: Growing adoption of cloud services has provided a significant market opportunity for hyperscale data center facilities. With organizations increasingly relying on cloud infrastructure for various business needs such as data storage, computing, analytics, and disaster recovery; the demand for remote data center infrastructure is growing exponentially. Hyperscale data centers provide scalable and cost-effective cloud infrastructure to support the ever-growing needs of cloud service providers. The efficient IT resource utilization and flexibility offered by hyperscale solutions is attracting more cloud operators to expand their capacity through hyperscale facilities. This growing reliance on cloud is expected to significantly drive the adoption of hyperscale data centers during the forecast period. Porter's Analysis Threat of new entrants: New entrants face high capital requirements to build hyperscale data centers infrastructure. They also face strong competitive pressure from existing major players. Bargaining power of buyers: Large cloud service providers and internet companies that are major buyers of hyperscale data center services have significant bargaining power due to their large size. Bargaining power of suppliers: Suppliers of critical components like servers, networking equipment and renewable energy solutions for hyperscale operations have some bargaining power. Threat of new substitutes: There is limited threat of substitution as hyperscale infrastructure is core to digital transformation and cloud migration strategies of major organizations. Competitive rivalry: Intense competition exists among existing major providers of hyperscale data center infrastructure and services globally. SWOT Analysis Strengths: Growing demand for hyperscale data center infrastructure from cloud, internet and enterprise sectors. Major players have global presence and robust financial resources. Weaknesses: High initial capital investments and long payback periods. Dependency on limited number of large customers increases business risk. Opportunities: Rising investments in artificial intelligence, 5G, and edge computing present new growth opportunities. Rapid digitalization post-pandemic to further spur demand. Threats: Limitations of renewable energy supply and rising energy costs pose challenges. Components supply chain disruptions affect operations. Key Takeaways The global Hyperscale Data Center Market is expected to witness high growth over the forecast period. The market was valued at US$ 87.87 Bn in 2023 and is projected to reach US$ 262.43 Bn by 2030, expanding at a compound annual growth rate of 15%. Regional Analysis: North America currently dominates the hyperscale data center market, accounting for around 35% share in 2023. This is attributed to high investments by major cloud service providers such as AWS, Microsoft, Google and Facebook in the region. The Asia Pacific region is expected to be the fastest growing market during the forecast period supported by rapid digital transformation and ongoing 5G rollout across major countries. Key players operating in the hyperscale data center market are India Systems Pvt. Ltd., Enkay Technologies, Budget Signs, Truknox Technologies, Intellicon, BH Enterprizes, BenQ Corporation, Sony Corporation, Sharp Corporation, Panasonic Corporation, LG Electronics Inc., and Samsung Electronics Co. Ltd. Major players are focusing on capacity expansions, renewable energy integration and developing edge data center infrastructure to strengthen their positions. Get More Insights On This Topic: https://www.ukwebwire.com/hyperscale-data-centers-are-expected-to-be-flourished-by-the-rapid-growth/
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