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The market share growth by the IT infrastructure will be significant during the forecast period. In terms of IT infrastructure, virtualization has been a key enabler for the increasing use of IT infrastructure in the data center in recent times. Companies in the IT infrastructure domain, namely Dell, HPE, Cisco, Huawei, Lenovo, and IBM, are involved in offering energy-efficient infrastructures that are termed density-optimized infrastructures in the market. During the forecast period, Companies will continue to innovate in offering infrastructure of higher capacity with reduced power consumption aiding the operation of environments.
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The IT infrastructure showed a gradual increase in the market share of USD 22.60 billion in 2018. With increasing focus of operators to adopt IT infrastructures that can perform complex computing tasks at a lower price and reduce the OPEX of the data center, the IT infrastructure segment and market will witness growth during the forecast period.
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Europe is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In Europe, the leading markets are the UK, Germany, the Netherlands, and Paris. In the past two years, the number of construction in the Netherlands has grown at a significant pace. This is mainly due to the lower electricity price and the availability of renewable sources. Almost all the projects that are being constructed in the Nordic countries, namely Sweden, Finland, Denmark, Norway, and Iceland, are being powered by 100% renewable energy because of the higher renewable productions. These countries also offer very low electricity pricing compared with other countries and use the free-cooling technique throughout the year. The awareness toward reducing electricity pricing is growing in countries, namely the UK and Germany.
Colocation providers, such as Equinix, Interxion, and Switch (SUPERNAP), are involved in the construction of Tier 3 and Tier 4 facilities in this region. Enterprises in Europe are also partnering with public cloud solution providers to develop cloud solutions. In 2021, OVHcloud, a leader in cloud computing in Europe, announced that it had entered into a strategic partnership with Bechtle. This long-term collaboration between OVHcloud and Bechtle has extended access to the latest cloud solutions with full data sovereignty. Hence, the abovementioned factors are expected to drive the growth of the regional market during the forecast period.
Green Data Centers (GDCs) have gained significant attention in today's digital world due to the increasing demand for data processing and storage. GDCs are designed to minimize energy consumption and reduce carbon footprint by integrating energy-efficient components such as Uninterruptible Power Supply (UPS) and cooling systems. ECO mode and Active Standby are some energy-saving techniques used in GDCs. Artificial Intelligence (AI) and Machine Learning (ML) are increasingly being adopted in GDCs for cooling power management. Energy efficiency is a crucial factor in the GDC market, with Digital Transformation, IoT, Healthcare, E-commerce, and other sectors driving the demand. Environmental Regulations and Tax Benefits are key factors propelling the growth of the GDC market. Net Carbon Neutrality and Renewable Energy Integration are emerging trends. Eco-friendly and Energy-efficient Solutions are in high demand, with Digital Services and Modular Infrastructure also gaining popularity. Carbon Emissions and environmental laws are major concerns, leading to the adoption of renewable energy sources. Cooling Technologies and Renewable Energy are essential components of GDCs. The market is expected to grow significantly due to the increasing demand for data processing and storage, and the need to reduce carbon footprint.
The surge in electricity consumption and associated costs is a significant driver of market growth. Data centers, essential for various operations, demand substantial electricity, a need exacerbated by the increasing usage of power-intensive applications like autonomous vehicles and streaming services. Despite advancements in technology enhancing energy efficiency, data center operators face challenges in maximizing energy efficiency and sustainability. Consequently, governments have responded by increasing electricity prices in some areas, prompting heightened awareness and initiatives for a greener environment. This trend is expected to fuel market growth, shaping trends in the market growth and trends during the forecast period.
The growing adoption of efficient infrastructure is the primary trend driving the market growth. Data center Companies have experienced several innovations over the past decade regarding the adoption of efficient infrastructure. In terms of IT infrastructure, the adoption of density-optimized server and storage infrastructure is gaining increased traction.
In addition, to reduce the consumption of energy, techniques such as free cooling and liquid immersion cooling are being implemented by operators to reduce the power consumption of the facility. Moreover, Companies operating in the market are also improving the energy efficiency of UPS systems. Modular UPS systems that are currently available in the market offer around 95% efficiency. Thus, the need for energy-efficient infrastructure is expected to drive the growth of the market during the forecast period.
Higher OPEX involved in renovating existing data centers is the major challenge impeding the market growth. Most of the infrastructure installation in the data center is related to one another. In addition, if the data center is not located in a region where renewable energy sources are limited, it is impossible to convert the facility to green.
The green data center includes the use of an energy-efficient server, storage, networking, power, and cooling equipment. The use of free cooling involves changes to the entire HVAC of the facility which makes to difficult to renovate an existing facility. Thus, the higher OPEX involved in renovating existing data centers is hindering the growth of the market during the forecast period.
The market growth analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth and forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Cisco Systems Inc - The company offers several energy-efficient data center solutions that include server service density, storage virtualization, and power management.
The market analysis and report also includes detailed analyses of the competitive landscape of the market and information about 20 market Companies, including:
Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
Green Data Centers (GDCs) are data centers designed to minimize energy consumption and reduce carbon footprint. Energy-efficient components, such as Uninterruptible Power Supply (UPS) systems and cooling systems, play a crucial role in GDCs. ECO mode and Active Standby are energy-saving features that help in reducing power consumption during idle periods. Artificial Intelligence (AI), Machine Learning (ML), and Predictive modeling are being increasingly used in GDCs for thermal optimization and power efficiency. Media and entertainment industries and OTT platforms rely heavily on large data centers for content delivery, driving the demand for GDCs. Green initiatives, such as Data center solutions for cooling power management, are essential for reducing Carbon Footprint. Digital Transformation and Environmental Regulations are pushing companies towards Net Carbon Neutrality, making Renewable Energy a popular choice for powering GDCs.
Eco-friendly practices, such as Virtualization, Intelligent Cooling Systems, and Power Management, are essential for reducing Greenhouse Gas Emissions. Hardware Innovations, such as Solar Panels, Wind Turbines, and Hydroelectric Plants, are being integrated into GDCs to increase their sustainability. Capital Expenditure on GDCs is expected to increase due to the growing demand for Cloud computing and Data Processing and Storage. Software Innovations, such as Power Management Systems, are also contributing to the growth of the GDC market. In conclusion, the market is witnessing significant growth due to the increasing demand for energy-efficient and eco-friendly data center solutions. The integration of AI, ML, and Renewable Energy is expected to further drive the market growth.
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Industry Scope |
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Report Coverage |
Details |
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Page number |
204 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 27.17% |
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Market growth 2024-2028 |
USD 202.4 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
21.03 |
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Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 40% |
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Key countries |
US, Germany, China, UK, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ABB Ltd., Carrier Global Corp., Cisco Systems Inc., CommScope Holding Co. Inc., Dell Technologies Inc., Delta Electronics Inc., Eaton Corp. Plc, Fujitsu Ltd., Green Revolution Cooling Inc., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., International Business Machines Corp., Modine Manufacturing Co., Panduit Corp., Rittal GmbH and Co. KG, Schneider Electric SE, Siemens AG, STULZ GmbH, Sunbird Inc., and Vertiv Holdings Co. |
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Market dynamics |
Parent market growth analysis, Market Forecasting, Market trends and analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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