The global data center market size was about $220.0 billion in 2021, likely increasing with a CAGR of 5.1% to $343.6 billion by 2030. A significant increase in data is a principal factor contributing to the market growth. The key reasons the demand for these facilities is increasing with each passing day include the rising usage of social, mobile, analytics, and cloud services. Recently, there is an explosion in the use of social media platforms, which calls for the development of data centers to store all the data.
IT infrastructure contributes the highest revenue in the data center market as it includes server, storage, and network infrastructure, which are the mainstay of such facilities. The demand for these components will further intensify in the future with around 5% CAGR. At present, businesses are shifting their data from their existing on-premises servers to data centers to allow for better data management, as data analysis has become integral to business growth, in addition to the public good.
Mergers and acquisitions in the industry have augmented significantly in the last few years. Multi-billion-dollar acquisition deals are common in the data center market at present. Apart from this, in 2020, a record $31 billion was spent across more than 110 mergers and acquisitions in the sector. The rising demand for data center capacity has made way for big mergers and acquisitions, which has led to a fresh wave of private cash flow into the technology sector while funding cutting-edge centers in developing countries.
The fast-increasing data generation is one of the key factors for the growth of the data center market. In 2020, 64.2 zettabytes of data were created, which was 314% more than 2015. Experts predict that by 2025, nearly 10 times more data will be generated than in 2017. Additionally, around 2.5 quintillion bytes of data are generated every day, worldwide. With the rapid adoption of IoT and social media platforms, about 90% of the data in the world was produced in the past four to five years.
North America had the market's largest share, of around 40%, in 2021, and it will grow at a significant CAGR in the industry. The U.S. possesses more than 2,600 such centers, many of which are situated in northern California, which is home to the headquarters of many IT firms. including Google, Facebook, Uber, Twitter, and Yelp. North America also has the highly innovative, extensive, and efficient technological infrastructure, which offers opportunities to companies offering various components and services for the construction of such facilities.
The COVID-19 pandemic has contributed to the strong growth of the data center market globally. Additionally, the adoption of cloud-based services by government agencies, along with online learning and contactless payments, aided in the growth of the market. Thus, the number of data management centers increased during the pandemic. For instance, in 2021, there were nearly 8,000 such centers around the world. The U.S. the U.K., Germany, China, Canada, and the Netherlands had most of them.
Hence, the industry boomed amidst the pandemic due to the rise in the volume of data because of the burgeoning usage of online platforms.
