Forecasts on the size of the hyperscale data center market vary. Market and Markets (2017) estimate that the hyperscale data center market will grow from US$25.08 bn in 2017 to US$ 80.65 bn by 2022 at a CAGR of 26.32%. Similarly, Allied Market Research (2016), forecasts a global market of $71.2 bn by 2022 with a CAGR of 20.7% for the period 2016-2022. These market estimates are driven by an increasing number of the hyperscale cloud service providers driven by the forecast growth in their core businesses and the advantages of cloud computing (see below).
According to Cisco:
hyperscale data centers is forecast to grow from 259 in 2015 to 485 by 2020 with a quintupling of traffic within these data centers in the same period – Cisco, (2016)
& by 2020, these hyperscale data centers will represent:
47% of all installed data center servers
53% of total traffic
68% of all data center processing power
57% of all data stored in data centers (Cisco, 2016)
Similar to the data center market as a whole, North America accounts for the majority of operators (51%) followed by Asia Pacific (29%), Western Europe (17%) and Latin America (3%) (Cisco, 2016).
Hyperscale data centers are driven by a number of major trends. These include big data, IOT/M2M, video streaming and cloud gaming. As a result, global data center and cloud IP traffic growth is forecast to triple by 2020 (Cisco, 2016; JLL, 2017). Similarly, by 2018, consumer use of cloud services is expected to grow to 3.6bn users driving massive growth in cloud services and storage (Juniper, 2015; Cisco, 2016).
The growth of hyperscale data centers will not be without challenges. Energy costs and regulation and issues relating to cross-border data protection and security are significant barriers to these operations and are anincreasing focus of policymakers throughout the world.
Interested in learning more? Download our free 2017 Data Center Market Briefing Paper.
This market briefing provides an overview of the global data center market, segmenting the market by both datacenter type and the individual hardware components that make up a data center. It outlines the factors influencing adoption of data centers worldwide and investigates the different factors changing the dynamics of this market, drawing on publicly available desk research from industry analysis to predict where this market will be in 2020.