Rise in adoption of 200/400 GbE switch ports and innovations in data center technology are driving the demand for United States data center market in the forecast period, 2023-2027.
According to TechSci Research report, “United States Data Center Market By Region, Competition Forecast & Opportunities, 2027”, the United States data center market is expected to grow with a robust CAGR during the forecast period, 2023-2027. The increase in demand for customized customer experience and expansion of digital businesses and industrial automation are driving the country’s demand and construction of new data centers. Services provided by data centers include wholesale colocation, retail colocation, and hosting. The wholesale colocation includes leasing the entire data center or the majority portion of the data center. It offers a high level of control over equipment and facility, and it is for a long duration. In Retail Colocation, multiple users can lease the data center on a shared basis, and they have lesser control over equipment compared to the wholesale colocation. Hosting provides services to several customers who lease the server capacity in a shared manner, and the cost of availing services is very low. Increasing demand from the growing digital economy and the need to efficiently manage the data while optimizing the operational and maintenance costs is expected to fuel the market growth. The rise in the number of data centers is increasing the electricity demand. Adoption of advanced power distribution and management solutions to attain energy efficiency at lower power usage effectiveness ratios and the trend to use a renewable energy source to power data centers are expected to influence the market demand. The surge in the number of cloud technology service providers and the adoption of energy-efficient measures by data centers is expected to magnify the United States market growth. Date center market players are adopting environmental, social, and corporate governance practices with efficient power generation and management to fuel the market demand.
However, concerns relating to data privacy and the high cost of data center construction may restrain the growth of the United States data center market in the forecast period.
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The United States data center market is segmented on the basis of solution, type, end user industry, competitional landscape, and regional distribution.
On the basis of type, the United States data center market is bifurcated into corporate and web hosting. The corporate segment is expected to dominate the market in the next five years owing to the high demand for advanced IT services for data management in large enterprises. Enterprises are actively adopting advanced digital and cloud computing technologies and investing in modernizing IT infrastructure, which is expected to boost the market growth. Data centers with a robust infrastructure, that is ready to meet the future demand of emerging edge, 5G, and IoT initiatives are experiencing high market demand.
Based on the end user industry, the United States data center market is divided into IT & telecom, government, BFSI, healthcare, and others. The healthcare segment is expected to hold a substantial market share in the forecast period, 2023-2027. The outbreak of COVID-19 increased the demand for medicines, advanced equipment, and healthcare services. Healthcare facilities and the associated market players made efforts to increase their production capacity and fuel the use of advanced technologies to satisfy the needs of the growing population. The enormous increase in the computing capacity of pharmaceutical companies and research institutions was observed during this period, which fueled the demand for high-performance computing systems on a large scale. The bioinformatics and epidemiology field adopted advanced methods to efficiently carry out large-scale simulations and calculations that otherwise would take large amount of time. The continuous growth of the healthcare industry is projected to boost the growth of the United States data center market in the next five years.
Major market players operating in the United States data center market are:
- Cisco Systems, Inc.
- Dell Technologies Inc.
- Hewlett Packard Enterprise
- IBM Corporation
- Lenovo Group Limited
- NetApp, Inc.
- Atos SE,
- Equinix, Inc.
- AT&T Inc.
- Verizon Communications, Inc.
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“Developed cloud market and high-usage of advanced technologies by enterprises and high investments in the upgradation of existing infrastructure are expected to create lucrative growth opportunities for the United States data center market. High traffic encountered by servers and the continuous rise in the density accelerates the adoption of next-generation data centers in the United States. The rise in private cloud applications and use of virtual desktop infrastructure and the innovative applications to launch advanced ethernet switches are expected to propel the growth of the United States data center market till 2027.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
“United States Data Center Market By Solution (IT Infrastructure, General Infrastructure, Electrical Infrastructure, Mechanical Infrastructure and Others), By Type (Corporate and Web Hosting), By End User Industry (IT & Telecom, Government, BFSI, Healthcare and Others), By Region, Competition Forecast & Opportunities, 2027”, has evaluated the future growth potential of the United States data center market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in United States data center market.
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