Hyperscale Data Center Market to be Majorly Driven by the Rising Data Center Traffic in the Coming Years

With the rising adoption of cloud computing, the need for more storage space has also increased. Cloud companies actively investing in hyperscale data centers have largely influenced the business model for server makers. Hyperscale data center finds usage in various applications in industries like IT & telecom, BFSI, government utilities, healthcare, energy, and manufacturing, among others. The growing adoption of hyperscale data center solutions by various organizations to cater to the increasing data center traffic is propelling the growth of this market in a major way.

The global hyperscale data center market that was estimated to be USD 25.08 Billion in 2017 is projected to reach a value of USD 80.65 Billion by 2022, growing at a CAGR of 26.32% during the forecast period from 2017 to 2022.

Based on solution, the storage solution segment is expected to witness the highest growth over the forecast period. This growth can be majorly attributed to its ability to provide optimum storage solutions to organizations in order to help them reduce differences between traditional file-based applications and new object access paradigms. These solutions also help in scaling enterprise IT infrastructure by ensuring the cost-effectiveness.

On the basis of services, maintenance and support services are expected to witness the highest growth during the projected period, owing to the rising needs of the organizations for maintaining critical IT infrastructure.

How is the market progressing, regionally?

Among regions, the market in North America is expected to be the largest market for hyperscale data centers in 2017, owing to the presence of a large number of data centers across different industries in this region. However, the market in Asia-Pacific is expected to witness the highest growth between 2017 and 2022, the main reason being the increasing data center traffic because of the surge in mobile devices in this region.

What is driving and restraining the market growth?

The growth of the global market for hyperscale data centers is being majorly influenced by the following factors:

  • Requirements for high application performance
  • Rising need for reduction in capital and operational expenditures
  • Increased spending on data center technology
  • Rising adoption of solutions for scaling the infrastructure as per the rise in demand

Apart from these, growing data center traffic and rise in the number of IoT devices are also expected to further create an array of growth opportunities for this market.

On the other hand, increasing infrastructural overheads may hamper the growth of this market to a certain extent. Moreover, increasing the storage space for hyperscale data centers is the major challenge to be overcome by the leading players involved in this market.

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Major companies and strategies incorporated

The key players functioning in the global hyperscale data center market include Dell Inc. (US), IBM Corporation (US), Hewlett Packard Enterprise Development LP (US), Huawei Technologies Co. Ltd. (China), Ericsson (Sweden), Cisco Systems, Inc. (US), NVIDIA Corporation (US), Lenovo Group Ltd. (China), Cavium (US), Quanta Computer Inc. (Taiwan), Broadcom Ltd. (US), and Intel Corporation (US). These companies are adopting various strategies such as new product launches, partnerships, collaborations, and expansions to maintain their position in the market as well as expand their global presence. There are some vendors that offer hyperscale data center solutions to enterprises to help reduce their capital and operational expenditures, with HPE being one of them that offer hyperscale data center solutions with respect to computing, storage, networking, power, and cooling. The company primarily focuses on the development of data center solutions that can help in transforming data centers in a cost-effective and secure manner.

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