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Data Center And Network Third Party Hardware Maintenance Service Market

ID: MRFR/ICT/29448-HCR
100 Pages
Ankit Gupta
October 2025

Data Center And Network Third-Party Hardware Maintenance Service Market Research Report: By Service Type (Break-Fix Maintenance, Preventive Maintenance, Predictive Maintenance, Proactive Maintenance, Managed Services), By Equipment Type (Servers, Storage, Networking, Security, Power, Cooling), By Industry (IT and Telecom, Financial Services, Healthcare, Government, Manufacturing, Retail, Education), By Maintenance Level (On-site, Off-site, Remote), By Contract Type (Time and Material, Fixed Price, Subscription-based) and By Regional - Foreca... read more

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Data Center And Network Third Party Hardware Maintenance Service Market Summary

As per MRFR analysis, the Data Center and Network Third-Party Hardware Maintenance Service Market was estimated at 26.77 USD Billion in 2024. The market is projected to grow from 28.47 USD Billion in 2025 to 52.7 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 6.35 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The The Data Center and Network Third-Party Hardware Maintenance Service Market is experiencing a transformative shift towards cost-effective and customized solutions. is experiencing a transformative shift towards cost-effective and customized solutions.

  • The market is witnessing a rising demand for cost-effective maintenance solutions, particularly in North America, which remains the largest market.
  • Customization of service offerings is becoming increasingly prevalent, catering to diverse client needs across various sectors.
  • Sustainability and efficiency are gaining traction, especially in the Asia-Pacific region, which is recognized as the fastest-growing market.
  • The increasing complexity of IT infrastructure and the shift towards outsourcing maintenance services are driving market growth, particularly in the Break-Fix Maintenance and Servers segments.

Market Size & Forecast

2024 Market Size 26.77 (USD Billion)
2035 Market Size 52.7 (USD Billion)
CAGR (2025 - 2035) 6.35%

Major Players

IBM (US), Hewlett Packard Enterprise (US), Dell Technologies (US), Cisco Systems (US), Lenovo (CN), Fujitsu (JP), Atos (FR), Wipro (IN), TCS (IN)

Data Center And Network Third Party Hardware Maintenance Service Market Trends

The Data Center and Network Third-Party Hardware Maintenance Service Market is currently experiencing a transformative phase, driven by the increasing complexity of IT infrastructures and the growing demand for cost-effective maintenance solutions. Organizations are increasingly recognizing the value of third-party services as a means to enhance operational efficiency while minimizing downtime. This shift appears to stem from a desire to optimize budgets and resources, allowing companies to focus on core business activities rather than being bogged down by hardware maintenance issues. Furthermore, the rise of cloud computing and virtualization technologies has led to a more dynamic environment, where traditional maintenance models may not suffice. As a result, third-party providers are adapting their offerings to meet the evolving needs of clients, potentially leading to more customized and flexible service agreements. In addition, the competitive landscape of the Data Center and Network Third-Party Hardware Maintenance Service Market is becoming increasingly intricate. New entrants are emerging, offering innovative solutions that challenge established players. This trend suggests a potential for enhanced service quality and pricing strategies, as companies strive to differentiate themselves in a crowded marketplace. Moreover, the emphasis on sustainability and energy efficiency is likely to influence service offerings, as organizations seek to align their maintenance practices with broader environmental goals. Overall, the market appears poised for continued growth, driven by technological advancements and shifting customer expectations.

Rising Demand for Cost-Effective Solutions

Organizations are increasingly seeking third-party maintenance services as a means to reduce operational costs. This trend indicates a shift from traditional vendor contracts to more flexible, budget-friendly options that allow businesses to allocate resources more efficiently.

Customization of Service Offerings

As the market evolves, third-party providers are likely to tailor their services to meet specific client needs. This customization may include flexible service level agreements and specialized support, reflecting the diverse requirements of modern IT environments.

Focus on Sustainability and Efficiency

The growing emphasis on environmental responsibility is influencing maintenance practices. Companies are increasingly looking for service providers that prioritize energy efficiency and sustainable solutions, aligning maintenance strategies with broader corporate sustainability goals.

Data Center And Network Third Party Hardware Maintenance Service Market Drivers

Technological Advancements in Hardware

Technological advancements in hardware are driving the Data Center and Network Third-Party Hardware Maintenance Service Market. As new hardware technologies emerge, the need for specialized maintenance services becomes more pronounced. Providers must stay abreast of the latest developments to offer effective support for cutting-edge equipment. The introduction of innovative hardware solutions, such as high-performance servers and storage systems, necessitates ongoing maintenance to ensure optimal performance. Market analysis suggests that the demand for third-party maintenance services will continue to grow as organizations invest in advanced hardware, thereby creating opportunities for service providers to expand their offerings.

Regulatory Compliance and Data Security

Regulatory compliance and data security concerns are increasingly influencing the Data Center and Network Third-Party Hardware Maintenance Service Market. Organizations are required to adhere to stringent regulations regarding data protection and privacy, which necessitates robust maintenance practices. Third-party maintenance providers play a crucial role in helping businesses meet compliance requirements by ensuring that hardware is maintained in accordance with industry standards. As data breaches and cyber threats become more prevalent, the demand for reliable maintenance services that prioritize security is expected to rise. This trend highlights the critical role of third-party maintenance in safeguarding sensitive information.

Increasing Complexity of IT Infrastructure

The Data Center and Network Third-Party Hardware Maintenance Service Market is experiencing growth due to the increasing complexity of IT infrastructures. As organizations adopt advanced technologies such as cloud computing, virtualization, and big data analytics, their hardware requirements become more intricate. This complexity necessitates specialized maintenance services that can address diverse hardware components and configurations. According to industry reports, the demand for third-party maintenance services is projected to rise as companies seek to optimize their IT operations while minimizing downtime. The ability to provide tailored maintenance solutions for complex systems positions third-party service providers as essential partners in ensuring operational efficiency.

Shift Towards Outsourcing Maintenance Services

A notable trend within the Data Center and Network Third-Party Hardware Maintenance Service Market is the shift towards outsourcing maintenance services. Organizations are increasingly recognizing the benefits of outsourcing, including cost savings and access to specialized expertise. By leveraging third-party maintenance providers, companies can focus on their core competencies while ensuring that their hardware is maintained by professionals with in-depth knowledge. Market data indicates that the outsourcing of IT maintenance services is expected to grow significantly, as businesses aim to enhance service quality and reduce operational costs. This trend underscores the importance of third-party maintenance services in the evolving IT landscape.

Growing Importance of Service Level Agreements (SLAs)

The growing importance of Service Level Agreements (SLAs) is shaping the Data Center and Network Third-Party Hardware Maintenance Service Market. Organizations are increasingly seeking clear and enforceable SLAs to ensure that maintenance services meet their operational needs. These agreements define the expectations for service delivery, response times, and performance metrics, thereby enhancing accountability. As businesses become more reliant on their IT infrastructure, the demand for well-defined SLAs is likely to increase. This trend indicates a shift towards more structured and transparent relationships between organizations and third-party maintenance providers, ultimately fostering trust and reliability in service delivery.

Market Segment Insights

By Service Type: Break-Fix Maintenance (Largest) vs. Managed Services (Fastest-Growing)

In the Data Center and Network Third-Party Hardware Maintenance Service Market, Break-Fix Maintenance holds the largest share among service types, owing to its straightforward and cost-effective approach to hardware maintenance. It serves as a go-to option for organizations looking to minimize expenses while ensuring essential repairs are conducted when necessary. In contrast, Managed Services are gaining traction, reflecting their responsiveness to evolving technology demands and increasing reliance on IT infrastructure. As companies seek comprehensive solutions, the market share distribution is shifting towards these innovative managed options, indicating a change in maintenance service preferences.

Break-Fix Maintenance (Dominant) vs. Proactive Maintenance (Emerging)

Break-Fix Maintenance is characterized by its reactive approach, where services are rendered only when issues arise, making it the dominant service type within this market. It appeals largely due to its reduced upfront costs, allowing organizations to allocate resources more efficiently. On the other hand, Proactive Maintenance is emerging as a noteworthy trend as businesses increasingly recognize the value of preventing potential failures. By employing predictive analytics and regular monitoring, organizations can minimize downtime and extend the life of their equipment, positioning Proactive Maintenance as an essential and favorable solution in the inherently dynamic IT environment.

By Equipment Type: Servers (Largest) vs. Cooling (Fastest-Growing)

In the Data Center and Network Third-Party Hardware Maintenance Service Market, the distribution of market share among equipment types reveals that Servers hold the largest share, driven by their essential role in data management and processing. Following Servers, Storage and Networking equipment segments also retain significant shares, catering to the increasing demands for data storage solutions and connectivity. Security, Power, and Cooling segment values, while crucial, reflect a more modest distribution of market share. The growth trends in this segment indicate a strong upward trajectory for Cooling solutions, which are becoming increasingly vital in the wake of rising energy consumption and the need for efficient thermal management in data centers. As data centers expand, the demand for sophisticated Cooling systems is predicted to rise, promoting advancements in technology. Moreover, the focus on sustainability and energy efficiency is expected to be key drivers fostering innovation and growth in this sector.

Servers (Dominant) vs. Cooling (Emerging)

Servers, as the dominant segment in the Data Center and Network Third-Party Hardware Maintenance Service Market, are integral to the functioning of modern data centers, due to their capability to manage extensive data loads and run complex applications. They often require robust maintenance services to ensure optimal performance and minimal downtime, with service providers offering comprehensive support solutions designed to extend the lifecycle of server hardware. In contrast, the Cooling segment is emerging rapidly, driven by innovations aimed at enhancing energy efficiency while meeting the increasing cooling demands of larger infrastructures. The evolution of cooling technologies, including liquid cooling and smart cooling solutions, positions this segment as a focal point of growth. Consequently, market players are investing in both advanced Cooling systems and tailored maintenance services to adapt to the changing requirements of data center environments.

By Industry: IT and Telecom (Largest) vs. Healthcare (Fastest-Growing)

The Data Center and Network Third-Party Hardware Maintenance Service Market exhibits a varied industry landscape, with IT and Telecom holding the largest share. This sector benefits from the constant demand for robust data services and high-performance networks, making it a significant player in the market. Healthcare is rapidly gaining traction, as the sector increasingly integrates technological solutions, driving demand for reliable maintenance services to ensure operational continuity and data integrity.

IT and Telecom (Dominant) vs. Healthcare (Emerging)

The IT and Telecom industry is predominant in the Data Center and Network Third-Party Hardware Maintenance Service Market due to its extensive infrastructure, which requires consistent support and maintenance for uninterrupted operations. This sector is characterized by high reliance on advanced hardware to manage data and communications seamlessly. In contrast, the Healthcare segment is emerging rapidly by adopting innovative technologies to enhance patient care and streamline operations. The increasing complexities of healthcare IT systems necessitate dependable maintenance solutions, making it a vital growth area within the market.

By Maintenance Level: On-site (Largest) vs. Remote (Fastest-Growing)

The Data Center and Network Third-Party Hardware Maintenance Service Market is segmented primarily into three maintenance levels: On-site, Off-site, and Remote. Currently, the On-site maintenance segment accounts for the largest share, favored by organizations due to its direct oversight and immediate service response capabilities. As data centers grow in complexity, businesses are increasingly relying on the personalized and rapid support that On-site services provide, solidifying its position as the preferred choice for many organizations. In contrast, Remote maintenance services are witnessing a significant growth trend, driven by advancements in technology and the rising demand for cost-effective solutions. With the growing number of organizations adopting hybrid cloud infrastructures, Remote services offer the ability to provide maintenance and troubleshooting without the need for physical presence, making it an attractive option for businesses looking to optimize their operational costs while enhancing service efficiency.

On-site (Dominant) vs. Remote (Emerging)

The On-site maintenance segment is currently the dominant player in the Data Center and Network Third-Party Hardware Maintenance Service Market, characterized by its personalized approach and quick response time. Organizations prefer this option to ensure uptime and mitigate potential risks associated with hardware failure. Technicians can assess and resolve issues on the spot, which significantly reduces downtime. Conversely, Remote maintenance services are emerging as a valuable alternative, allowing for real-time diagnostics and support without the need for travel. This flexibility appeals especially to companies seeking to balance service quality with cost efficiency. As technology evolves, Remote services continue to grow in sophistication, making them increasingly competitive with On-site options.

By Contract Type: Time and Material (Largest) vs. Subscription-based (Fastest-Growing)

In the Data Center and Network Third-Party Hardware Maintenance Service Market, the contract type segment is primarily dominated by Time and Material agreements, which account for a significant proportion of the market share. This contract type allows organizations to pay for services based on the actual time and resources expended, making it popular for clients who require flexibility depending on their varying hardware maintenance needs. Meanwhile, Subscription-based models are emerging as a significant player, appealing to customers looking for predictable expenses and ongoing support during the lifecycle of their hardware.

Time and Material: Dominant vs. Subscription-based: Emerging

The Time and Material contract type is well-established and valued for its adaptability, catering to clients who may have fluctuating maintenance needs or unpredictable hardware failures. Clients appreciate this model for its pay-as-you-go structure, allowing them to manage costs more effectively. On the other hand, the Subscription-based model is gaining traction as a viable alternative, primarily due to the increasing preference for predictable budgeting in IT procurement. This model offers customers continuous support and the potential for enhanced service delivery, making it attractive for organizations committed to maintaining operational continuity and minimizing downtime through proactive maintenance.

Get more detailed insights about Data Center And Network Third Party Hardware Maintenance Service Market

Regional Insights

North America : Market Leader in Innovation

North America is the largest market for Data Center and Network Third-Party Hardware Maintenance Services, holding approximately 45% of the global market share. The region's growth is driven by the increasing demand for cloud services, data security regulations, and the proliferation of IoT devices. Additionally, government initiatives promoting digital transformation are acting as catalysts for market expansion. The competitive landscape is characterized by the presence of major players such as IBM, Dell Technologies, and Cisco Systems. The U.S. leads the market, followed by Canada, which is also witnessing significant growth due to its robust IT infrastructure and investment in data centers. The focus on enhancing service delivery and customer satisfaction is driving competition among these key players.

Europe : Emerging Market with Potential

Europe is witnessing a significant rise in the Data Center and Network Third-Party Hardware Maintenance Services market, holding around 30% of the global share. The growth is fueled by increasing investments in IT infrastructure, regulatory compliance requirements, and the shift towards hybrid cloud solutions. Countries like Germany and the UK are leading this growth, supported by favorable government policies and initiatives aimed at enhancing digital capabilities. Germany stands out as the largest market in Europe, followed closely by the UK. The competitive landscape includes key players such as Atos and Fujitsu, who are focusing on innovation and service diversification. The European market is characterized by a strong emphasis on sustainability and energy efficiency, which is shaping service offerings and operational strategies.

Asia-Pacific : Rapid Growth and Expansion

Asia-Pacific is rapidly emerging as a significant player in the Data Center and Network Third-Party Hardware Maintenance Services market, accounting for approximately 20% of the global market share. The region's growth is driven by the increasing adoption of cloud computing, rising internet penetration, and government initiatives promoting digital infrastructure. Countries like China and India are at the forefront, with substantial investments in data centers and IT services. China is the largest market in the region, followed by India, which is experiencing a surge in demand for third-party maintenance services. The competitive landscape is marked by the presence of local and international players, including Lenovo and Wipro, who are focusing on enhancing service quality and expanding their market reach. The region's dynamic environment is fostering innovation and competition among service providers.

Middle East and Africa : Emerging Market with Opportunities

The Middle East and Africa region is gradually emerging in the Data Center and Network Third-Party Hardware Maintenance Services market, holding about 5% of the global share. The growth is primarily driven by increasing digital transformation initiatives, government investments in IT infrastructure, and the rising demand for data security solutions. Countries like the UAE and South Africa are leading this growth, supported by favorable regulatory frameworks and strategic partnerships. The UAE is the largest market in the region, with a focus on becoming a digital hub. South Africa follows closely, with significant investments in data centers and IT services. The competitive landscape includes both local and international players, who are increasingly focusing on service innovation and customer-centric solutions to capture market opportunities.

Data Center And Network Third Party Hardware Maintenance Service Market
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Key Players and Competitive Insights

Major players in Data Center and Network Third-Party Hardware Maintenance Service Market industry are focusing on expanding their product portfolio by investing in research and development activities. Leading Data Center and Network Third-Party Hardware Maintenance Service Market players are also adopting various strategies such as mergers and acquisitions, joint ventures, and partnerships to strengthen their market position.

The Data Center and Network Third-Party Hardware Maintenance Service Market industry is expected to witness significant growth in the coming years due to the increasing adoption of cloud computing, big data, and artificial intelligence (AI).Leading Data Center and Network Third-Party Hardware Maintenance Service Market player IBM offers a wide range of hardware maintenance services, including proactive support, predictive analytics, and on-site support. IBM has a strong presence and a large customer base, which gives it a competitive advantage in the market. 

The company is also investing heavily in research and development to stay ahead of the competition. IBM's hardware maintenance services are used by a variety of customers, including large enterprises, small businesses, and government agencies.A prominent competitor in the Data Center and Network Third-Party Hardware Maintenance Service Market is Dell Technologies. Dell Technologies offers a comprehensive suite of hardware maintenance services, including proactive support, predictive analytics, and on-site support. The company has a strong presence and a large customer base, which gives it a competitive advantage in the market.

Dell Technologies is also investing heavily in research and development to stay ahead of the competition. Dell Technologies' hardware maintenance services are used by a variety of customers, including large enterprises, small businesses, and government agencies.

Key Companies in the Data Center And Network Third Party Hardware Maintenance Service Market market include

Industry Developments

The Data Center and Network Third-Party Hardware Maintenance Service Market is expected to grow from USD 23.67 billion in 2023 to USD 41.2 billion by 2032, at a CAGR of 6.35%. The market is driven by the increasing adoption of cloud and edge computing, which is leading to a greater need for data center and network hardware maintenance services.

Additionally, the growing number of connected devices and the increasing complexity of IT infrastructure are also contributing to the growth of the market.Some of the recent news developments and current affairs in the Data Center And Network Third-Party Hardware Maintenance Service Market include:In February 2023, IBM announced the launch of its new AI-powered data center maintenance service, which is designed to help customers improve the efficiency and reliability of their data center operations.

In March 2023, Dell Technologies announced the acquisition of Cloudify, a provider of cloud management software, which will help Dell Technologies expand its offerings in the data center and network hardware maintenance market.In April 2023, Google Cloud announced the launch of its new data center maintenance service, which is designed to help customers reduce the cost and complexity of managing their data center infrastructure.These developments indicate that the Data Center And Network Third-Party Hardware Maintenance Service Market is growing rapidly and that there is a strong demand for these services.

Future Outlook

Data Center And Network Third Party Hardware Maintenance Service Market Future Outlook

The Data Center and Network Third-Party Hardware Maintenance Service Market is projected to grow at a 6.35% CAGR from 2024 to 2035, driven by increasing demand for cost-effective maintenance solutions and technological advancements.

New opportunities lie in:

  • Expansion into emerging markets with tailored service packages
  • Development of AI-driven predictive maintenance tools
  • Partnerships with cloud service providers for integrated support solutions

By 2035, the market is expected to be robust, reflecting substantial growth and innovation.

Market Segmentation

Data Center And Network Third Party Hardware Maintenance Service Market Industry Outlook

  • IT and Telecom
  • Financial Services
  • Healthcare
  • Government
  • Manufacturing
  • Retail
  • Education

Data Center And Network Third Party Hardware Maintenance Service Market Service Type Outlook

  • Break-Fix Maintenance
  • Preventive Maintenance
  • Predictive Maintenance
  • Proactive Maintenance
  • Managed Services

Data Center And Network Third Party Hardware Maintenance Service Market Contract Type Outlook

  • Time and Material
  • Fixed Price
  • Subscription-based

Data Center And Network Third Party Hardware Maintenance Service Market Equipment Type Outlook

  • Servers
  • Storage
  • Networking
  • Security
  • Power
  • Cooling

Data Center And Network Third Party Hardware Maintenance Service Market Maintenance Level Outlook

  • On-site
  • Off-site
  • Remote

Report Scope

MARKET SIZE 202426.77(USD Billion)
MARKET SIZE 202528.47(USD Billion)
MARKET SIZE 203552.7(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)6.35% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledMarket analysis in progress
Segments CoveredMarket segmentation analysis in progress
Key Market OpportunitiesIntegration of artificial intelligence in predictive maintenance enhances efficiency in the Data Center and Network Third-Party Hardware Maintenance Service Market.
Key Market DynamicsRising demand for cost-effective solutions drives competition among third-party hardware maintenance service providers in data centers.
Countries CoveredNorth America, Europe, APAC, South America, MEA

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FAQs

What is the projected market valuation for the Data Center and Network Third-Party Hardware Maintenance Service Market in 2035?

The projected market valuation for 2035 is 52.7 USD Billion.

What was the overall market valuation for this sector in 2024?

The overall market valuation for the Data Center and Network Third-Party Hardware Maintenance Service Market was 26.77 USD Billion in 2024.

What is the expected CAGR for the market during the forecast period 2025 - 2035?

The expected CAGR for the market during the forecast period 2025 - 2035 is 6.35%.

Which service type segment is projected to have the highest valuation by 2035?

The Break-Fix Maintenance segment is projected to reach a valuation of 15.0 USD Billion by 2035.

How does the projected valuation for Servers compare to other equipment types by 2035?

By 2035, the Servers segment is expected to reach 16.0 USD Billion, making it the highest among equipment types.

What are the anticipated valuations for the Preventive Maintenance segment by 2035?

The Preventive Maintenance segment is anticipated to reach a valuation of 12.0 USD Billion by 2035.

Which industry is expected to contribute the most to the market by 2035?

The IT and Telecom industry is expected to contribute the most, with a projected valuation of 17.0 USD Billion by 2035.

What is the projected valuation for the Subscription-based contract type by 2035?

The Subscription-based contract type is projected to reach a valuation of 17.1 USD Billion by 2035.

Which key players are leading the Data Center and Network Third-Party Hardware Maintenance Service Market?

Key players in the market include IBM, Hewlett Packard Enterprise, Dell Technologies, and Cisco Systems.

What is the expected growth trend for the Off-site maintenance level segment by 2035?

The Off-site maintenance level segment is expected to grow to a valuation of 16.0 USD Billion by 2035.

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