The Business Research Company’s report on the Managed Data Center Services Market provides insights into the global market size, growth rate, regional distribution, competitive landscape, key segments, emerging trends, and strategic opportunities.
Which emerging drivers are set to accelerate the growth of the managed data center services market further?
A growing number of data centers is expected to propel the growth of the managed data center services market going forward. A data center refers to a physical space used to store and manage data for various purposes, such as the development of new products and services and the maintenance and repair of existing ones. A managed data center provides full functionality, maintenance, and monitoring regarding the upkeep and health of systems without taking the responsibility of deployment, management, and monitoring. For instance, in February 2022, according to the Korea Data Center Council (KDCC), a Korea-based organization that is dedicated to promoting the development of the data center industry in Korea, the overall capacity of colocation data centers information technology (IT) load reached 430 MW, accounting for 11% of the total APAC IT load. Following Savills Korea projections, the total commercial data center IT load in Korea is expected to expand by 700 MW between 2021 and 2023, accounting for 15% of overall Asia-Pacific capacity. Therefore, the growing number of data centers is driving the growth of the managed data center services market.
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What are the key factors influencing the forecasted market size of the managed data center services industry?
The managed data center services market size has grown rapidly in recent years. It will grow from $413.39 billion in 2024 to $470.6 billion in 2025 at a compound annual growth rate (CAGR) of 13.8%. The growth in the historic period can be attributed to the growing demand for data storage, expansion of digitalization, increased reliance on data-driven processes, rising complexity of its infrastructure, and globalization of businesses
The managed data center services market size is expected to see rapid growth in the next few years. It will grow to $893.98 billion in 2029 at a compound annual growth rate (CAGR) of 17.4%. The growth in the forecast period can be attributed to cloud computing adoption, the surge in data generation, the need for scalable and flexible infrastructure, rising cybersecurity concerns, and globalization of businesses. Major trends in the forecast period include the adoption of artificial intelligence in data center management, focus on sustainable and green data centers, integration of edge computing solutions, rising demand for modular data centers, and increased use of software-defined data center (SdDC) solutions.
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Who are the leading competitors in the managed data center services market?
Major companies operating in the managed data center services market include Microsoft Corporation, Verizon Communications Inc., AT&T Inc., Deutsche Telekom AG, Dell Inc., Accenture plc, International Business Machines Corporation, Cisco Systems Inc., Orange S.A., Fujitsu Limited, Hewlett Packard Enterprise Development LP, Tata Consultancy Services Ltd., Telefonaktiebolaget LM Ericsson, Capgemini SE, NTT Data Inc., Cognizant Technology Solutions U.S. Corporation, Infosys Limited, ZTE Corporation, Lumen Technologies Inc., DXC Technology, CGI Inc., Atos SE, Wipro Ltd., HCL Technologies Limited, Equinix Inc., Rackspace Inc., Hitachi Vantara Corporation, LTIMindtree Limited, Unisys Corporation, Cyxtera Technologies Inc.
Which emerging trends are set to transform the managed data center services market landscape?
Technological advancements are a key trend gaining popularity in the managed data center services market. Major companies operating in the managed data center services market are adopting new technologies to sustain their position in the market. For instance, in June 2022, Cisco Umbrella, a US-based company that provides versatile cloud-based security, launched new Secure Access Service Edge (SASE) data centers for security. This system combines firewalls, a secure web gateway (SWG), DNS-layer security, a cloud access security broker (CASB), and threat intelligence into a single cloud service, enabling organizations of all sizes to secure their consumers wherever they operate. Cisco Umbrella data centers are purposefully placed close to Internet exchange points (IXPs) for faster, more dependable service. These data centers are carrier-neutral and were chosen solely for their capacity to offer the highest connectivity and services to the regions they cover.
How do different geographies compare in terms of market share and growth potential in the managed data center services market?
North America was the largest region in the managed data center services market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the managed data center services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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Which major segments of the managed data center services market are experiencing the fastest growth?
The managed data center services market covered in this report is segmented –
1) By Type: Managed Storage, Managed Hosting, Managed Collocation, Other Types
2) By Deployment Type: Cloud, On-Premise
3) By Enterprise Size: Small Enterprises, Medium Enterprises, Large Enterprises
4) By End-User Industry: BFSI (Banking, Financial Services, And Insurance), Energy, Retail, Healthcare, Manufacturing, Other End-User Industries
Subsegments:
1) By Managed Storage: Backup And Recovery Solutions, Data Archiving Services
2) By Managed Hosting: Dedicated Hosting, Virtual Private Servers (VPS)
3) By Managed Collocation: Rack Space Services, Power And Cooling Management
4) By Other Types: Disaster Recovery As A Service (DRaaS), Security Management Services
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How is the managed data center services market defined, and what are its core characteristics?
The managed data center service is a data center model deployed, organized, and monitored by a third-party data center service provider to provide features and functionality to those of a standard data center but through a managed service platform (MSP). Managed data centers can be sourced from data center hosting, colocation, or a cloud-based data center as a service (DCaaS) platform.
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