EDITOR ’ S QUESTION
WHAT FACTORS ARE SET TO DRIVE DEMAND FOR DATA CENTRE TRANSFORMATION IN EUROPE ?
he market in Europe is
T expected to be worth US $ 18.53 billion in 2023 . Between 2023 and 2033 , a 13.1 % CAGR is predicted for growth . The market is driven by the high demand for data centre transformation from hyperscale data centre customers including large Internet businesses and suppliers of public cloud services .
The introduction of disruptive technologies like autonomous cars , the Internet of Things ( IoT ), cloud computing and sophisticated robotics has increased the need for Edge Computing solutions in developed countries like the UK , Germany and France .
Thanks to the development of 5G , which is driving the market ’ s expansion , the data centre transformation providers now have the opportunity to deliver these services in distant areas of Europe with greater connection .
The global data centre transformation market size is estimated at US $ 10.5 billion in 2023 . In 2033 , the size of the world market would be US $ 35.65 billion .
Data centres are under pressure due to the ongoing adoption of cutting-edge technologies by various enterprises , including Big Data analytics , cloud computing and IoT , as part of their plans for Digital Transformation .
This in turn increases demand for data centre transformation on a worldwide scale . It is anticipated that the sector would benefit greatly from the increased need for software-optimised data centres on a global scale .
Stumbling blocks in the market
A shortage of skilled labour and problems with regulatory and portability compliance are impeding the data centre transformation market expansion . The management of utilities , physical security , building upkeep and other physical components are not subject to customs control because colos are managed by a different organisation .
Despite having no control over the location , the supplier completely manages their data centres using the public cloud , taking care of equipment maintenance and upgrades . Thus , all of these constraints are restricting the market for data centre transformation .
Key takeaways
• With 44.9 % of the data centre transformation market share in 2023 , North America led the way and during the forecast period , it is anticipated to rise at a CAGR of more than 13 %.
• During the forecast period , the Asia- Pacific data centre transformation market is anticipated to exhibit a considerable CAGR of over 14 %.
• With a maximum revenue share of 36.2 %, the consolidation services segment led all service segments during the projected period and is anticipated to continue to lead .
• In the end-user category , the cloud service providers segment had a key revenue share of 46.2 % and is expected to increase at the maximum CAGR of almost 13 % over the projection period .
• By 2033 , the verticals section ’ s IT and telecommunication segment generated US $ 8176.48 million in revenue and it is anticipated that this segment would expand at a CAGR of 12 % over the forecast period .
Competitive landscape
Due to the numerous competitors operating both in the domestic and international markets , the data centre transformation market is very competitive . With the top competitors pursuing tactics like product and design innovation , the market seems to be moderately concentrated .
Among others , Dell EMC , Cisco Systems and IBM Corporation are some of the market ’ s significant players in data centre transformation . www . intelligentdatacentres . com
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