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Data Center Budgets To Increase More Than 10% By 2017: Technavio
02:54:00 - 21 October 2016


LONDON--(BUSINESS WIRE)--Technavio’s latest market intelligence report on global data center services forecasts the market to grow at a steady CAGR of close to 11% during the next four years.

The research study covers the present scenario and growth prospects of the global data center services market until 2020. The top key suppliers listed in the report include Digital Realty, Equinix, Switch, Microsoft, and Quality Technology Services.

According to Angad Singh, a procurement intelligence specialist, “Since the data center services market is projected to see exponential growth in the next four years, suppliers are increasingly investing on improving infrastructure to help meet growing demand for data centers, support, and related services. More data centers, around 22%, are expected to be constructed by 2020 due to an increase in volumes of data being generated.”

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Technavio’s new market intelligence sample reports are free of charge and contain multiple sections of the report including the market size and forecast, drivers, challenges, trends, and more.

Category spend intelligence managers from Technavio highlight the following four factors that are contributing to the growth of global data center services:

  • Lack of in-house capabilities for maintaining data centers
  • Demand for storage capacity and adoption of virtualized infrastructure
  • Demand for better network management
  • Increased focus on sustainability

Lack of in-house capabilities for maintaining data centers

Many small organizations struggle to maintain in-house data centers and monitor day-to-day operations. As a result, they are outsourcing data center services to third parties in order to focus on core activities, as well as to reduce infrastructural costs and management complexities.

Category managers believe that growth in the data center outsourcing market in India, which is expected to post a striking 25% CAGR through 2018, will be one of the major factors contributing to overall growth of the market.

Demand for storage capacity and adoption of virtualized infrastructure

Businesses across sectors are growing exponentially, which, in turn, is giving rise to the need for enhancement in storage capacities. The demand for data center virtualization is also rising as virtualization of data center services helps reduce power consumption and the need for dedicated physical infrastructure. This increased demand for storage capacity from businesses and virtualization is likely to increase data center budgets by more than 10% by 2017.

Demand for better network management

An increase in the penetration and usage of mobile services, social media, and cloud-based platforms is leading to demand for high-bandwidth networks for faster transmission of data. Therefore, many organizations, while procuring data centers, are looking for better network connectivity options that include carrier availability and density. This demand for network connectivity is driving the data center market, as they are able to provide large network bandwidth cost-effectively.

Increased focus on sustainability

Stringency of environmental regulations is prompting suppliers to invest in R&D for the development of energy-efficient data centers. This is influencing buyers to outsource their data center requirements to these providers, as it helps them save on R&D costs, while allowing them to comply with regulatory requirements. The green data centers market is expected to grow at a CAGR of over 27% through 2019 to reach USD 75.89 billion.

Browse Related Reports:

  • IT Storage Services - Procurement Market Intelligence 2016
  • Global Market Research Services - Procurement Market Intelligence 2016
  • Global IT Peripherals - Procurement Market Intelligence Report 2016

Do you need a report on a market in a specific geographical cluster or country but can’t find what you’re looking for? Don’t worry, Technavio also takes client requests. Please contact enquiry@technavio.com with your requirements and our analysts will be happy to create a customized report just for you.

About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

If you are interested in more information, please contact our media team at media@technavio.com.


Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770


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