The market for outsourcing data centers worldwide is anticipated to reach US$245.596 billion by 2027, expanding at a compound annual growth rate (CAGR) of 4.53%.
This growth will be fueled, in part, by rising demand for shared infrastructure services, the expansion of numerous industries, rising demand for virtual storage services, rising levels of spending on various IT and business technology services, and rising market research and development activities, according to ResearchAndMarkets.com.
According to the survey, small businesses are predicted to hold the largest market share since it is likely that they would employ data center outsourcing services to accelerate their expansion and gain access to new markets.
It is anticipated that the information, communication, and technology (ICT) sectors in the United States and the North American area will dominate the worldwide data outsourcing industry.
The term “data center outsourcing” refers to a group of services offered by specialized IT companies for the implementation, upkeep, supervision, and optimal functioning of data center infrastructure and related components. The consumer group outsources these tasks to specialized IT providers because of their management expertise.
A number of key factors are driving the data center outsourcing market, including the rise in demand for shared infrastructure services, the expansion of numerous industries, an increase in spending on various IT and business technology services, and an increase in market research and development activities.
Additionally, new possibilities for the data center outsourcing market will arise during the forecast period as a result of advancements in technology, modernization of manufacturing techniques, and growing demand from emerging economies.
However, among the main factors limiting market growth and continuing to present challenges to the data center outsourcing market during the forecast period are a lack of expertise and skilled professionals in the industry as well as an increase in the infrastructure-related complications in different data centers.
The technology and communications industry is anticipated to expand significantly over the anticipated time period and hold onto a sizable portion of the market. This is a result of the perception that the Information, Communication, and Technology (ICT) sector is growing in order to effectively and efficiently handle the increasing volume of data and resources being produced, which is increasing the complexity and cost of data center operations. The need for these services is increasing as a result of the growing popularity of data center outsourcing among large and mid-sized organizations.
The sector of small businesses is anticipated to have the biggest market share during the anticipated time frame. In order to expand and reach new markets, smaller enterprises are more inclined to use data center outsourcing services. Additionally, outsourcing services help small businesses lower the cost of their data center infrastructure. These services assist with business continuity due to their catastrophe recovery capabilities. This is anticipated to drive the data center outsourcing market during the anticipated time frame.
The North American region is anticipated to hold a considerable market share and rise at a significant rate throughout the forecast due to the highly developed Information, Communication, and Technology sector in nations like the United States. Furthermore, growing data center outsourcing investments and new data center openings, which are increasing demand for data center outsourcing and propelling market expansion, are to blame for its supremacy in this region.
For instance, Google just disclosed its goals for 2020 growth in February 2020. By using this development plan, Google will be able to increase its presence in 11 US states. To support the development of offices and data centers in states like California, Google has planned to contribute around $10 billion USD..