The data center infrastructure market is speculated to register robust growth by 2028 on account of the burgeoning number of SMEs across key regions.
An efficient data center infrastructure offers several benefits to businesses, including cutting costs, protecting against electrical disturbances and power spikes, better safety, more accessible data storage and management, and improving efficiency. Growing number of enterprises and prevalent usage of online services across the world have propelled industry development over the past few years.
The data center infrastructure market has been segmented on the basis of application, product, component, and region. From the product perspective, the market has further been divided into DCIM, power, networking equipment, cooling, LV/MV distribution, and IT racks & enclosures.
The IT racks & enclosures sub-segment is speculated to witness robust expansion through the analysis period to reach a notable valuation by the end of 2028. This growth is attributed to the widespread adoption of advanced technologies by manufacturing industries.
The LV/MV distribution sub-segment is slated to rise at a significant growth rate between 2022 and 2028 owing to the construction of hyperscale data centers that require electrical distribution solutions. The networking equipment sub-segment is anticipated to exhibit a solid growth momentum over the assessment timeline. Rapid digitization across multiple sectors is likely to boost product demand over the forthcoming years.
In terms of component, the data center infrastructure market has been bifurcated into services, hardware, and software. The hardware sub-segment is foreseen to develop at a steady pace through the review period on account of recent advancements in miniature circuits and electronic components.
With respect to application, the market has been segregated into IT & telecom, BFSI, colocation, manufacturing, energy, healthcare, and government. The colocation sub-segment is projected to progress at a significant CAGR over the forecast timeline owing to the growing penetration of colocation data centers in various locations. The energy sub-segment is set to observe sturdy expansion through the study timeframe due to the mounting need for handling complex solutions in the energy sector.
The government sub-segment is estimated to amass considerable gains by 2028 owing to the rising focus on shifting services to online platforms to better utilize services in the government sector. The healthcare sub-segment is poised to garner a sizable market share by the end of 2028. The booming telemedicine and telehealth sectors are likely to fuel the adoption of data center infrastructures.
On the regional front, the South America data center infrastructure market is expected to record a substantial revenue by the end of 2028 due to rapid urbanization and digitization in the region.