- Growing enterprises and industrial sectors have generated an increasing need for the expansion of data storage capacities.
- The growing use of cloud services for data storage is expected to drive the market for mega data centers.
- The banking and finance industry is expected to hold the maximum market share in the global mega data centers market.
The global mega data center market is strongly driven by an increasing inclination to digitize and store expansive amounts of data to make use of the immense amount of information available now. As the industrial sector is experiencing a technological boost across the globe, adoption of various advanced tools and techniques is rising exponentially.
Developing companies generate a large amount of data traffic that needs effective storage and management facilities. Growing enterprises and industrial sectors have generated an increasing need for the expansion of data storage capacities. Mega data centers are used to meet this need as they provide high storage capacity, significant bandwidth, and facilitate large-scale data transfer. The adoption of mega data centers is also driven by the need for and cost-benefit consolidation of data centers.
The global mega data center market is set to grow with a CAGR of 5.1% over the forecast period from 2019 to 2027, starting from $18.95 billion in 2018.
The growing use of cloud services for data storage is also expected to drive the market for mega data centers during the forecast period. Companies such as Amazon, Microsoft, Google, and many more have extensive data storage requirements that focus on mega data centers to meet their storage needs.
Although these facilities are efficient and user-friendly, they require a huge amount of investment and approval from government authorities. As a result, high investment and installation costs and regulatory barriers are likely to negatively impact market growth. In addition, the lack of technical support in developing and underdeveloped countries also hinders the rate of adoption of mega data centers in these regions.
Based on end users, the banking and finance industry is expected to hold the maximum market share in the global mega data centers market. As this sector generates the maximum amount of data on a regular basis, they need an efficient data storage facility to help them manage and process data without problems. Moreover, the security of the data generated in this sector is in high demand, which means that mega data centers are widely used in this sector.
Based on geography, North America dominates the mega data center market with the largest market share of about 40% of the total revenues generated worldwide. Technological innovations and the improvisation of business infrastructure mainly contribute to the high demand for mega data centers in the North American region. As a business hub, this region generates a large amount of data each year that requires large storage facilities. The majority of companies dominating the data center market are based in North America and thus contribute to the high market value of this regional segment.
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In addition, the increasing adoption of cloud services, managed services, placement and other hybrid approaches to test new business models and launch new products and services are also driving demand for mega data centers in the region.
However, Asia-Pacific is projected to experience the highest growth in the forecast period. The transformation from traditional data centers to advanced large-capacity data storage facilities is mainly driving the growth of the mega data centers market in the region. As countries such as India and China focus on the digital economy, the amount of data generated is growing rapidly.
A number of Asia-Pacific region organizations, particularly in the BFSI sector, are not allowed to host their data in a data center outside the country. This regulatory barrier obliges companies to set up their data centers within the country. Many international companies are also establishing their local data centers in India, which facilitates an increasing number of mega data centers in India and, ultimately, in the Asia-Pacific region.
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