According to a new report published by MarkWide Research, titled, “Data Center Outsourcing and Infrastructure Utility Services Market,” the global market for data center outsourcing and infrastructure utility services is positioned for substantial growth, with an anticipated compound annual growth rate (CAGR) of 9.7% during the forecast period of 2023 to 2030. This surge in demand is fueled by the increasing need for cost-effective, scalable, and flexible data center solutions.
Key Market Insights:
- Cost Efficiency: Outsourcing data center operations and infrastructure utility services helps businesses reduce capital expenditure and operating costs, while still accessing state-of-the-art technology and infrastructure.
- Scalability and Flexibility: Outsourcing enables organizations to scale their IT infrastructure as needed, adapting to changing business requirements without the burden of over-provisioning.
- Focus on Core Competencies: Outsourcing data center services allows organizations to concentrate on their core business activities, leaving complex data center management to experts.
- Global Reach: Emerging markets in Asia-Pacific and Latin America are witnessing substantial growth in data center outsourcing as businesses seek to harness global infrastructure capabilities.
The data center outsourcing and infrastructure utility services market is expected to reach a valuation of $96.7 billion by 2030, up from $39.5 billion in 2023. This substantial growth underscores the indispensable role of outsourcing in enabling businesses to concentrate on their strategic objectives.
Factors Driving Market Growth:
- Digital Transformation: As organizations embark on digital transformation journeys, the demand for agile and scalable data center services becomes paramount.
- Disaster Recovery: Outsourced data centers offer robust disaster recovery solutions, ensuring data integrity and business continuity in the face of disruptions.
- Hybrid Cloud Adoption: The adoption of hybrid cloud environments necessitates expertise in managing data centers and cloud infrastructure, driving the demand for outsourcing.
- Globalization: Multinational corporations require global data center presence, making outsourcing an attractive option for accessing diverse geographic locations.
The data center outsourcing and infrastructure utility services market is segmented based on service type, organization size, end-user industry, and region.
By Service Type:
- Data Center Colocation
- Managed Hosting
- Cloud Services
- Disaster Recovery Services
- Network Services
By Organization Size:
- Small and Medium-sized Enterprises (SMEs)
- Large Enterprises
By End-User Industry:
- IT & Telecom
- North America
- Latin America
- Middle East & Africa
The data center outsourcing and infrastructure utility services market is highly competitive, with several key players competing for market share. Prominent companies in this space include IBM Corporation, Hewlett Packard Enterprise (HPE), Amazon Web Services (AWS), and Microsoft Corporation, among others. These companies continue to innovate and expand their outsourcing offerings to cater to the evolving needs of businesses.
The data center outsourcing and infrastructure utility services market is poised for remarkable growth, driven by the imperative need for cost-effective, scalable, and expertly managed data center solutions. As organizations focus on their core competencies and digital transformation initiatives, outsourcing will remain a strategic choice. With an expected CAGR of 9.7% through 2023-2030, the market presents abundant opportunities for businesses aiming to excel in data center outsourcing and infrastructure utility services.