Global Data Centre Transformation Market Report and Forecast 2024-2032

Global Data Centre Transformation Market Outlook

The global data centre transformation market size reached around USD 10.86 billion in 2023. The market is estimated to grow at a CAGR of 14.10% between 2024 and 2032, reaching an approximate value of nearly USD 35.59 billion by 2032.

Key Trends in the Market

Data centre transformation refers to the process of modernising and upgrading an existing data centre infrastructure to meet the changing technology, business, and operational needs. It involves implementing new technologies, improving efficiency, enhancing scalability, and optimising the overall performance of the data centre.

• Cloud computing has emerged as a transformative force in the data centre sector. Organisations are increasingly adopting cloud services, either through public, private, or hybrid cloud models. This trend is driven by the rising need for scalability, flexibility, and cost-efficiency. Hence, the increasing implementation of cloud technologies is likely to significantly enhance the data centre transformation market expansion.

• With the rising concerns around data breaches, cybersecurity, and privacy regulations, data centre transformation to strengthen security measures is increasing. This includes the implementation of advanced encryption, robust access controls, and the adoption of security frameworks such as zero trust architecture.

• Data centres are also incorporating compliance standards like GDPR (General Data Protection Regulation) and CCPA (California Consumer Privacy Act) into their operations to ensure data privacy and regulatory compliance.

• SDDC (software-defined data centre) is an architectural approach that abstracts and virtualises the entire data centre infrastructure, including computing, storage, and networking, through software-defined technologies. SDDC enables greater agility, scalability, and automation in data centre operations. SDDC is a major data centre transformation market driver, allowing organisations to adapt quickly to changing business needs.

Market Analysis

Based on service, the market is segmented into consolidation, optimisation, automation, and infrastructure management. On the basis of end-user, the market can be divided into cloud service providers, colocation providers, and enterprises.

Based on industry vertical, the market is categorised into BFSI, IT and telecommunications, government and defence, energy, and manufacturing, among others. The major regional markets for data centre transformation are North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

The comprehensive EMR report provides an in-depth assessment of the market based on Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the global data centre transformation market, covering their competitive landscape and the latest developments like mergers, acquisitions, investments, and expansion plans.

• IBM Corporation

• Cisco Systems, Inc

• Dell Technologies, Inc

• Microsoft Corporation

• Schneider Electric SE

• HCL Technologies Limited

• Cognizant Technology Solutions Corporation

• Accenture plc

• Open Text Corporation (Micro Focus International Plc)

• Others

Market Share by Service

Consolidation services are expected to hold a major data centre transformation market share. Consolidation of data centres is increasingly becoming popular as it allows organisations to comply with regulatory measures and disaster recovery processes. It also helps companies to organise their infrastructure and reduce the amount of equipment. This enables them to reduce expenses while enhancing energy efficiency.

Market Share by End-User

Cloud service providers are likely to drive the market growth as businesses become more aware of the benefits of adopting cloud technologies. Cloud storage and technologies allow companies to enhance their scalability and flexibility by removing the restraints imposed by on-premises infrastructure.

Organisations gain the opportunity to transform their initial capital expenditures designated for maintaining private data centres into ongoing operational expenses linked to cloud services. This shift enables them significantly reduce IT costs.

Competitive Landscape

IBM Corporation, also known by its nickname “Big Blue”, is an international technology and software development company, headquartered in New York, the United States. The company was founded in 1911 and has developed extensive expertise in various sectors of technology. It is known as a leader in the field of automation, data analytics, and artificial intelligence, among others.

Cisco Systems, Inc is one of the leading global software development companies, based in California, the United States. The company was founded in the year 1984 and has since developed expertise in various fields including networking, wireless, cloud, security, and data centre, among others. The company provides a wide array of products to businesses of different sizes.

Dell Technologies, Inc. is one of the largest multinational technology companies originating from the United States of America. The organisation was founded in 2016 and has become a major player in the personal computer market. It also focuses on different fields of technology, including network security, computer security, digital transformations, and data storage, among others.

Other market players include Microsoft Corporation, Schneider Electric SE, HCL Technologies Limited, Cognizant Technology Solutions Corporation, Accenture plc, and Open Text Corporation (Micro Focus International Plc), among others.

Key Highlights of the Report