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Home > Data Center > The need for data processing and storage capacity drive data center market

The need for data processing and storage capacity drive data center market

Frost & Sullivan's recent analysis finds that continued high levels of technology deployment worldwide will result in driving the need for data processing and storage capacity.

Seda Nur Cinar by Seda Nur Cinar
February 11, 2021 11:14 am
in Data Center, Feature
2 min read
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The need for data processing and storage capacity drive data center market

Frost & Sullivan’s recent analysis, Increased Investment by Cloud and Colocation Providers Drives the Global Data Center Market analysis indicates that continued high levels of technology deployment worldwide will result in a proliferation of data created, driving the need for data processing and storage capacity.

Hybrid model in data centers

Data center operators have a tendency to deploy and use IoT and Big Data. The adoption of a hybrid model with cloud and traditional data centers, and strong growth in emerging economies will serve as key market drivers.

Frost & Sullivan predicts $432.14 billion will be invested in the data center market by 2025, up from $244.74 billion in 2019, a CAGR of 9.9%. The Asia-Pacific region will become the largest market by 2025, followed by North America and EMEA.

Manoj Shankar, Research Analyst, Energy & Environment Practice, Frost & Sullivan, said,

“The move from enterprise to cloud and colocation data centers will gain momentum because companies can reduce capital and operational costs by avoiding investments in hardware or software infrastructure and reducing maintenance and space requirements. Additionally, 5G will move processing closer to the point of data collection, leading to increased deployment of micro and edge data centers and driving investments in new and next-generation data center technologies.”

Edge computing, 5G revolution, and the increasing adoption of artificial intelligence (AI) will drive data center activity, providing tremendous opportunities to its market participants, such as:

  • Edge Computing: Connected devices, connected living/homes, AI, gaming and video streaming, autonomous cars, and virtual and augmented reality will propel edge data centers.
  • Artificial Intelligence: Surging AI usage in data centers will lead to demand for advanced electronics and specialists in AI-based solutions for data center applications and architecture.
  • New Capabilities: As data processing takes place close to the source, the processing time reduces. This will augment technologies like autonomous vehicles, smart devices and sensors, augmented reality, etc.
  • Geographic Expansion and Partnerships: Market participants need to focus on high-growth, emerging markets, like India and Southeast Asia, where data creation is still in the nascent stage and data center construction in its infancy. Similarly, partnerships with colocation and cloud service providers will give equipment manufacturers access to new data center construction markets, providing them the much-needed boost.

See more Data Center News


Tags: Manoj Shankar
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Seda Nur Cinar

Seda Nur Cinar

Editor of Cloud7, Seda is a Linux and opensource enthusiast, security researcher and a web application developer.

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