The green data center market was valued at USD 53.19Ębillion, in 2019, and is expected to reach a value of USD 181.91Ębillion, by 2025, registeringĘa CAGR of 23.01 %, during the forecast period, (2020 - 2025). TheĘconcern about the growing percentage of energy consumption by data centers, over the years, has alerted the governments across the United States and Europe, to regulate energy consumption regularly, which is the primary factor, which drives the green data center market.
- With the growing need to increase storage capacity has emerged as a big opportunity for every major enterprise in the data center and storage space market, as there has been a consistent rise in the number of data-hungry customers and applications. Globally, the amount of data is set to grow drastically in the next few years.
- According to Huawei, the global estimate of data center demand is expected to increase by 3 to 10 times by 2030. Green data center (GDC), which provides effective and eco-friendly solutions in terms of data storage and reduction in energy consumption, is expected to witness great demand owing to the positive outlook of the data center storage needs and new constructions owing to the regulations and the anticipated rise in need to reduce the operational expenditure.
- Despite long-term savings and ROI, renewable energy data centers have a high cost of initial investment. A green data center solution consists of green power and cooling infrastructure solution, coupled with energy-efficient equipment and management system which is the factor driving the demand for green data center over the other data centers.
Scope of the Report
A green data center is a repository for the storage, management, and distribution of data in which the mechanical, electrical, lighting and computer systems are designed to provide maximum energy efficiency and minimum environmental impact. The construction and operation of a green data center includes advanced technologies and strategies.
Key Market Trends
Power Segment to Hold a Significant Market Share
- Green data centers are basically designed to obtain maximum energy efficiency and have a minimum environmental impact. Greater energy efficiency is the primary need, as these data center power consumption and cooling issues are two of the biggest issues faced by organizations across the world.
- Controlling these types of operational costs have become necessary to optimize the business processes and to remain competitive in the market.
- Power is a significant part of green data center investments. Both low-power solutions and efficient solutions help organizations in meeting their desired objectives. Data center energy costs have exceeded the overall investments in equipment rooms and auxiliary devices.
- However, results from recent research have shown that this trend is slowing down due to the effective green efficiency measures taken up in mature markets of the US and Europe.
- With the increasing electricity usage, increased billings, and increasing emissions of CO2 from these data centers, the need for green data centers is set to increase thereby driving the market forward.
North America Occupies the Largest Market Share
- The North American region holds the largest share in the green data center market owing to the presence of a large number of services and software providers which also drives the market forward.
- With the expansion of mobile broadband, the emergence of 5G, growth in big data analytics, and cloud computing are the primary factors driving the demand for new data center infrastructures in this region.
- North America, comprising of a considerable amount of data centers in 2018 and a large number of enterprises switching from hardware to software-based services, is expected to impact the market significantly and be a lucrative market for data center transformation.
- North American region also contributes substantially to the global data center requirements from the IT, BFSI, retail, and healthcare industries. In addition, data center service providers in the region are prompted to manage their operating costs, as the region seems to be a lucrative market, considering the number of data centers and their expansions.
The green data center market is highly competitive owing to the presence of many players in the market running their business in domestically as well as internationally. The market appears to be moderately concentrated with key strategies adopted by the major players are product innovation, mergers and acquisitions. Some of the major players in the market are Cisco Technology Inc., IBM Corporation, Dell EMC Inc., Fujitsu Ltd among others.
- March 2018 - Schneider Electric opened its first large-scale innovation hub in New East Asia & Japan Headquarters in Singapore, bringing together multiple operations across the region to one location, in order to better serve customers and industry partners.
- February 2018 - Google announced a combined investment of USD 6 billion in data centers and energy infrastructure, following AppleŐs USD 10 billion data center push unveiled last month. These data centers are expected to make use of green energy concepts.
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1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Increasing Demand for Data Storage
4.3.2 Focus on Energy Efficiency
4.4 Market Restraints
4.4.1 Higher Initial Investments
4.5 Industry Value Chain Analysis
4.6 Industry Attractiveness - Porter's Five Force Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 By Service
5.1.1 System Integration
5.1.2 Monitoring Service
5.1.3 Professional Service
5.1.4 Other Services
5.2 By Solution
5.2.3 Management Software
5.2.4 Networking Technologies
5.2.6 Other Solutions
5.3 By User
5.3.1 Colocation Providers
5.3.2 Cloud Service Providers
5.4 By Industry Vertical
5.4.2 Financial Services
5.4.4 Telecom and IT
5.4.5 Other Industry Verticals
5.5.1 North America
5.5.4 Latin America
5.5.5 Middle East & Africa
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Fujitsu Ltd
6.1.2 Cisco Technology Inc.
6.1.3 HP Inc.
6.1.4 Dell EMC Inc.
6.1.5 Hitachi Ltd
6.1.6 Schneider Electric SE
6.1.7 IBM Corporation
6.1.8 Eaton Corporation
6.1.9 Vertiv Corporation
6.1.10 GoGrid LLC
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.