Global Hyperscale Data Center Market Size is estimated to be valued over USD 128 billion in 2019, registering a CAGR of 16.1% between 2019 and 2028. Over US$ 269 billion has already been spent in last five years. The industry is highly consolidated with Google, Facebook, Amazon, Apple and Microsoft are key players accounting for 72% of global share in 2018. These players are focusing on enhancing technological architecture in order to stay agile. Investment on building new data centers as well as equipping and refreshing data center is seen in the market.
The industry has already captured 79% of global data center traffic. Hyperscalers are expected to witness explosive growth, effect of which is largely seen across value chain. It has created wide market prospects for data center suppliers. Relatively large number of enterprises boomed in last few years. The trend is likely to continue over the forecast period.
Cloud computing has gained immense popularity due to better IT infrastructure. Over 36% of end-use companies leverages public cloud computing. The share is expected to further soar to account for over 59% share by 2028. These end-use companies has already shifted their one third of business to public cloud computing. In few years, it will surpass 90%. Overall, the strong IT infrastructure and booming digitization has led hyperscalers to expand business footprint. Bekryl estimates the industry to witness relatively higher growth during the forecast period.
Global Hyperscale Data Center Market Value Analysis, By Component
Based on component, the industry revenue is analyzed across central processing units, NAND, connectors, RAM, and hard disk drives. While, highest hyperscale penetration is seen in NAND, RAM accounted for largest share in 2018. Hyperscalers have lowest penetration in hard disk drive segment. It will significantly increase with increasing popularity of public cloud computing.
Global Hyperscale Data Center Market Analysis, By Region
Globally, Asia Pacific dominated the global share in 2018. The region not only dominated the regional share, but also is expected to register fastest CAGR of 27.2% during the forecast period. Better internet connectivity along with emergence of large number of OTT players has led to favorable ecosystem in the region. Growth in the region is primarily attributed to China and Japan. Close to 255 million people are expected to watch video over subscription. The number is huge citing sheer size of country population. Furthermore, market will rise with increasing internet connectivity in the region. India is another lucrative destination for hyperscalers in Asia. India is reviving its IT infrastructure under Make in India initiative. Internet Penetration has increased with telecom companies offering affordable 4G internet connectivity. In 2019, CtrlS, announced its plan to invest US$ 300 million in setting up hyperscale infrastructure in India. North America stands next to Asia Pacific.
Global Hyperscale Data Center Market Size: Competition Landscape
The industry is highly consolidated with top five players accounting for majority market share. Tencent, IBM, Alibaba, and Baidu are other key player in the market.
Some key Hyperscale Data Center market players are