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Data Centre Equipment Market

ID: MRFR/SEM/34899-HCR
128 Pages
Aarti Dhapte
October 2025

Data Centre Equipment Market Research Report: By Type (Servers, Storage Devices, Networking Equipment, Cooling Systems, Power Supply Units), By Deployment Type (On-Premises, Cloud-Based, Hybrid), By End User (Small and Medium Enterprises, Large Enterprises, Government), By Application (Data Storage, Data Processing, Cloud Computing) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Industry Forecast to 2035.

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Data Centre Equipment Market Summary

As per MRFR analysis, the Data Centre Equipment Market Size was estimated at 83.41 USD Billion in 2024. The Data Centre Equipment industry is projected to grow from 88.88 USD Billion in 2025 to 167.65 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 6.55 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Data Centre Equipment Market is experiencing a transformative shift towards energy efficiency and advanced technologies.

  • The market is witnessing a notable rise in energy efficiency initiatives, particularly in North America.
  • Modular infrastructure solutions are gaining traction, especially in the rapidly expanding Asia-Pacific region.
  • Integration of advanced technologies is becoming essential, with servers remaining the largest segment in the market.
  • Increased demand for cloud services and the focus on sustainability are driving growth in both the cloud-based and hybrid segments.

Market Size & Forecast

2024 Market Size 83.41 (USD Billion)
2035 Market Size 167.65 (USD Billion)
CAGR (2025 - 2035) 6.55%

Major Players

Dell Technologies (US), Hewlett Packard Enterprise (US), Cisco Systems (US), IBM (US), Lenovo (CN), Schneider Electric (FR), Rittal (DE), Vertiv (US), Fujitsu (JP), Huawei (CN)

Data Centre Equipment Market Trends

The Data Centre Equipment Market is currently experiencing a transformative phase, driven by the increasing demand for efficient and scalable infrastructure. Organizations are increasingly recognizing the necessity of robust data management solutions, which has led to a surge in investments in advanced equipment. This shift is largely influenced by the growing reliance on cloud computing and the need for enhanced data security. As businesses expand their digital footprints, the market appears poised for substantial growth, with innovations in technology playing a pivotal role in shaping future developments. Furthermore, sustainability concerns are prompting companies to adopt energy-efficient solutions, thereby influencing purchasing decisions and operational strategies. In addition, the Data Centre Equipment Market is witnessing a trend towards modular designs, which offer flexibility and scalability. This approach allows organizations to adapt their infrastructure in response to changing demands, thereby optimizing resource utilization. The integration of artificial intelligence and machine learning into data centre operations is also becoming more prevalent, as these technologies enhance efficiency and predictive maintenance. Overall, the market landscape is evolving, with various factors converging to create a dynamic environment that encourages innovation and investment.

Rise of Energy Efficiency

The Data Centre Equipment Market is increasingly focusing on energy-efficient solutions. Organizations are prioritizing sustainability, leading to the adoption of equipment that minimizes energy consumption while maximizing performance. This trend not only reduces operational costs but also aligns with global environmental goals.

Modular Infrastructure Solutions

Modular designs are gaining traction within the Data Centre Equipment Market. These solutions provide organizations with the flexibility to scale their infrastructure according to demand. This adaptability is crucial for businesses aiming to optimize their resources and respond swiftly to market changes.

Integration of Advanced Technologies

The incorporation of artificial intelligence and machine learning into data centre operations is becoming more common. These technologies enhance operational efficiency, enabling predictive maintenance and improved resource management. As a result, organizations can achieve higher performance levels and reduce downtime.

Data Centre Equipment Market Drivers

Increased Demand for Cloud Services

The Data Centre Equipment Market is experiencing a surge in demand for cloud services, driven by the growing reliance on digital solutions across various sectors. As businesses increasingly migrate to cloud-based platforms, the need for robust data centre infrastructure intensifies. According to recent estimates, the cloud services market is projected to reach a valuation of over 800 billion dollars by 2025. This trend necessitates the expansion and enhancement of data centre facilities, leading to increased investments in equipment such as servers, storage systems, and networking devices. Consequently, the Data Centre Equipment Market is poised for substantial growth as organizations seek to optimize their operations and improve service delivery through advanced data centre technologies.

Emergence of Edge Computing Solutions

The rise of edge computing is reshaping the Data Centre Equipment Market by decentralizing data processing and storage. As organizations seek to reduce latency and improve response times, edge computing solutions are becoming increasingly popular. This shift is expected to drive the demand for localized data centre equipment, such as micro data centres and edge servers. The edge computing market is projected to grow at a compound annual growth rate of over 30%, indicating a substantial opportunity for the Data Centre Equipment Market. As businesses adopt edge computing strategies, they will require specialized equipment to support these initiatives, further propelling market growth.

Rising Data Generation and Storage Needs

The exponential growth in data generation is a pivotal driver for the Data Centre Equipment Market. With the proliferation of IoT devices, social media, and big data analytics, organizations are generating vast amounts of data that require efficient storage and processing capabilities. It is estimated that the total amount of data created globally will reach 175 zettabytes by 2025. This surge in data necessitates the deployment of advanced data centre equipment to ensure effective data management and retrieval. As a result, companies are investing heavily in scalable storage solutions and high-performance computing systems, thereby propelling the Data Centre Equipment Market forward.

Focus on Sustainability and Energy Efficiency

Sustainability has become a critical focus for the Data Centre Equipment Market, as organizations strive to reduce their carbon footprint and energy consumption. The increasing awareness of environmental issues has led to a demand for energy-efficient data centre solutions. According to industry reports, energy-efficient data centres can reduce operational costs by up to 30%. This shift towards sustainable practices is prompting manufacturers to innovate and develop equipment that minimizes energy usage while maximizing performance. As a result, the Data Centre Equipment Market is likely to witness a rise in the adoption of green technologies and energy-efficient designs, aligning with global sustainability goals.

Adoption of Artificial Intelligence and Automation

The integration of artificial intelligence (AI) and automation technologies is transforming the Data Centre Equipment Market. Organizations are increasingly leveraging AI to optimize data centre operations, enhance security, and improve resource management. The Data Centre Equipment Market in data centres is expected to grow significantly, with projections indicating a compound annual growth rate of over 30% through 2025. This trend is driving the demand for advanced data centre equipment that can support AI applications, such as high-performance servers and intelligent networking solutions. Consequently, the Data Centre Equipment Market is evolving to accommodate these technological advancements, fostering innovation and efficiency.

Market Segment Insights

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

In the Data Centre Equipment Market, the segment distribution indicates that Servers hold the largest market share, driven by the continuous demand for computing power and data processing capabilities. Meanwhile, Networking Equipment has emerged as the fastest-growing segment, fueled by the increasing emphasis on data transmission efficiency and network reliability, especially with the rise of cloud services and IoT technologies. The balanced focus on performance and scalability across these segments marks a significant trend in the market.

Servers: Dominant vs. Networking Equipment: Emerging

Servers are pivotal to data centre operations, providing the necessary computing power to handle massive data workloads efficiently. Their dominant position in the market is underpinned by advancements in processing technology and the growing requirements for high-performance computing. In contrast, Networking Equipment, categorized as an emerging segment, is witnessing rapid growth due to escalating data traffic and the need for robust network infrastructure. This has led to innovations in networking technologies and solutions to optimize connectivity and reduce latency, positioning this segment advantageously in the evolving landscape of data center demands.

By Deployment Type: Cloud-Based (Largest) vs. Hybrid (Fastest-Growing)

In the Data Centre Equipment Market, the deployment type segment reveals a clear distribution of market share among On-Premises, Cloud-Based, and Hybrid solutions. Cloud-Based deployment is currently the largest segment, appealing to organizations with a need for flexibility and scalability. On-Premises solutions, while still significant, are losing ground to the cloud due to their high maintenance costs and the increasing demand for remote accessibility. Meanwhile, Hybrid deployment is gaining traction as businesses seek a balanced approach to data storage and management, combining both on-premises and cloud solutions.

Deployment Type: On-Premises (Dominant) vs. Cloud-Based (Emerging)

On-Premises deployment remains the dominant force in the Data Centre Equipment Market, favored by large enterprises that prioritize data security and control. However, this segment is under pressure as organizations increasingly look for cost-effective and scalable solutions. Conversely, Cloud-Based deployment is rapidly emerging, driven by the demand for flexibility and the ability to integrate advanced technologies like AI and machine learning. This has resulted in businesses gravitating towards hybrid solutions to achieve a versatile data management strategy that leverages the strengths of both On-Premises and Cloud-Based approaches.

By End User: Large Enterprises (Largest) vs. Small and Medium Enterprises (Fastest-Growing)

In the Data Centre Equipment Market, Large Enterprises hold the largest share due to their extensive operational requirements, which drive significant investment in high-capacity data centre infrastructure. Their demand for sophisticated solutions, such as advanced servers and network equipment, signifies a preference for quality and reliability. Conversely, Small and Medium Enterprises, although a smaller segment, are becoming crucial as they continue to adopt cloud-based solutions and virtualization, making them a key player in the market.

Large Enterprises (Dominant) vs. Small and Medium Enterprises (Emerging)

Large Enterprises are characterized by their substantial market presence and investment capabilities, allowing them to implement the most advanced data centre technologies. They prioritize scalability and high-performance systems to meet increasing data demands, often resulting in tailored solutions that cater to enterprise-grade needs. On the other hand, Small and Medium Enterprises represent an emerging segment gaining traction by leveraging cost-effective data centre solutions. They are increasingly focusing on hybrid and as-a-service models, adopting innovative approaches to meet operational requirements without the heavy financial burdens typically associated with traditional setups. This trend illustrates a significant shift in how smaller organizations approach their IT infrastructure.

By Application: Data Storage (Largest) vs. Cloud Computing (Fastest-Growing)

In the Data Centre Equipment Market, the application segment showcases a diverse distribution of functions, primarily involving Data Storage, Data Processing, and Cloud Computing. Data Storage remains the largest segment, driven by an increasing need for vast amounts of data storage due to digital transformation and growing data consumption. In contrast, Cloud Computing is gaining momentum, representing a rapidly expanding area fueled by the rising adoption of cloud services across enterprises seeking flexibility and scalability.

Cloud Computing (Dominant) vs. Data Processing (Emerging)

Within the application segment of the Data Centre Equipment Market, Cloud Computing has emerged as a dominant force, characterized by its ability to provide scalable resources and services on-demand. Its growth is propelled by businesses transitioning from traditional IT infrastructures to more efficient cloud solutions. Meanwhile, Data Processing, while still relevant, is viewed as an emerging value that supports essential workloads and analytics. The demand for real-time processing capabilities and big data analytics is pushing this segment forward, leading to innovations designed to enhance processing efficiency and performance.

Get more detailed insights about Data Centre Equipment Market

Regional Insights

North America : Innovation and Leadership Hub

North America remains the largest market for data centre equipment, holding approximately 40% of the global share. The region's growth is driven by increasing cloud adoption, the rise of big data analytics, and stringent regulatory frameworks promoting data security. The U.S. leads this market, followed closely by Canada, as enterprises invest heavily in modernizing their infrastructure to support digital transformation initiatives. Key players such as Dell Technologies, Hewlett Packard Enterprise, and Cisco Systems dominate the competitive landscape. The presence of advanced technology firms and a robust startup ecosystem further fuels innovation. Additionally, government initiatives aimed at enhancing cybersecurity and data privacy regulations are shaping market dynamics, ensuring that North America remains at the forefront of data centre advancements.

Europe : Emerging Data Centre Powerhouse

Europe is witnessing significant growth in the data centre equipment market, accounting for approximately 30% of the global share. The region's expansion is largely driven by the increasing demand for sustainable and energy-efficient solutions, as well as regulatory frameworks that promote green technology. Countries like Germany and the UK are leading this growth, with a strong focus on reducing carbon footprints and enhancing energy efficiency in data centre operations. The competitive landscape is characterized by key players such as Schneider Electric, Rittal, and IBM, who are innovating to meet the region's sustainability goals. The European market is also seeing a rise in colocation services, driven by enterprises seeking to optimize their IT infrastructure. As regulations tighten around data protection and environmental standards, companies are compelled to invest in advanced data centre technologies to remain compliant and competitive.

Asia-Pacific : Rapidly Growing Market Segment

Asia-Pacific is rapidly emerging as a significant player in the data centre equipment market, holding around 25% of the global share. The region's growth is fueled by the increasing digitalization of businesses, the rise of e-commerce, and government initiatives promoting technology adoption. Countries like China and India are at the forefront, with substantial investments in data centre infrastructure to support their growing economies and digital landscapes. The competitive environment is marked by the presence of major players such as Huawei and Lenovo, alongside local firms that are expanding their capabilities. The region is also witnessing a surge in cloud service providers, which is driving demand for advanced data centre solutions. As regulatory frameworks evolve to address data privacy and security, companies are adapting their strategies to align with these changes, ensuring robust growth in the sector.

Middle East and Africa : Emerging Market with Potential

The Middle East and Africa region is gradually emerging in the data centre equipment market, accounting for about 5% of the global share. The growth is primarily driven by increasing internet penetration, the rise of cloud computing, and government initiatives aimed at enhancing digital infrastructure. Countries like the UAE and South Africa are leading the charge, investing heavily in data centre facilities to support their growing digital economies. The competitive landscape is evolving, with both The Data Centre Equipment Market share. Companies such as Vertiv and Fujitsu are establishing a presence in the region, focusing on innovative solutions tailored to local needs. As the demand for data storage and processing capabilities increases, the region is expected to see significant investments in data centre technologies, supported by favorable government policies and a growing tech-savvy population.

Data Centre Equipment Market Regional Image

Key Players and Competitive Insights

The Data Centre Equipment Market is characterized by a complex landscape driven by technological advancements and increasing demand for data processing and storage solutions. Businesses and organizations are continually expanding their digital infrastructure to remain competitive, prompting investments in data centre equipment designed to enhance efficiency, reliability, and performance. As a result, a multitude of players are vying for market share, each bringing innovative products and solutions to accommodate the unique needs of various end-users.

The competition is heightened by a focus on sustainability, cost reduction, and rapid technological evolution, compelling companies to strategically position themselves and leverage their strengths to capture the attention of a diverse clientele keen on optimized data center operations.Hewlett Packard Enterprise has established itself as a formidable entity in the Data Centre Equipment Market, showcasing a robust portfolio that combines cutting-edge technologies with an understanding of customer needs. 

The company excels in delivering versatile IT solutions, encompassing servers, storage, and networking equipment that can be tailored to various enterprise requirements. Hewlett Packard Enterprise is known for its commitment to innovation, consistently launching products that enhance operational efficiency while maintaining high levels of security and scalability. This adaptability allows the company to cater to a wide range of industries, positioning itself as a reliable choice for businesses looking to bolster their data center capabilities.

Furthermore, Hewlett Packard Enterprise benefits from a strong reputation in the market, built on decades of experience and its ability to forge strategic partnerships that enhance its product offerings.Schneider Electric emerges as a significant player in the Data Centre Equipment Market, recognized for its commitment to developing solutions that optimize energy management and automation in data centres. 

The company focuses on integrating sustainability with cutting-edge technology, enabling clients to reduce energy consumption and greenhouse gas emissions while ensuring reliable power supply and cooling solutions. Schneider Electric's innovative offerings encompass a wide array of products and services that cater to the varying demands of data center environments, from energy-efficient uninterruptible power supplies to advanced cooling systems.

The company's emphasis on digital transformation and the Internet of Things further enhances its market presence, positioning Schneider Electric as a forward-thinking leader that not only addresses current challenges faced by data centers but also anticipates future needs through its commitment to continuous improvement and technological advancement.

Key Companies in the Data Centre Equipment Market market include

Industry Developments

The Data Centre Equipment Market has been experiencing significant developments recently. Companies like Hewlett Packard Enterprise and Schneider Electric have been advancing their technology offerings, focusing on energy efficiency and sustainability in data centers. Meanwhile, Dell Technologies and IBM are investing in hybrid cloud solutions, enhancing service capabilities in data management. In the realm of mergers and acquisitions, there have been notable movements; for instance, Arista Networks has been strategically increasing its market share by acquiring smaller technology firms, which bolsters its product line in high-speed networking.

Additionally, Hitachi has been involved in efforts to enhance its data storage solutions by exploring acquisition opportunities to consolidate its standing in the market. Companies like Oracle and Huawei Technologies continue to innovate in hardware and cloud services, driving competition and investment in the sector. The market is witnessing growth, with valuation rising significantly, attributed to the increasing demand for cloud services and advanced data management solutions. Overall, these dynamics demonstrate a robust and evolving landscape in the Data Centre Equipment Market, driven by technological advancements and strategic company actions.

Future Outlook

Data Centre Equipment Market Future Outlook

The Data Centre Equipment Market is projected to grow at a 6.55% CAGR from 2024 to 2035, driven by increasing cloud adoption, data security needs, and energy efficiency demands.

New opportunities lie in:

  • Development of energy-efficient cooling solutions for data centres.
  • Integration of AI-driven management systems for operational efficiency.
  • Expansion into edge computing infrastructure to meet latency demands.

By 2035, the market is expected to be robust, driven by technological advancements and evolving customer needs.

Market Segmentation

Data Centre Equipment Market Type Outlook

  • Servers
  • Storage Devices
  • Networking Equipment
  • Cooling Systems
  • Power Supply Units

Data Centre Equipment Market End User Outlook

  • Small and Medium Enterprises
  • Large Enterprises
  • Government

Data Centre Equipment Market Application Outlook

  • Data Storage
  • Data Processing
  • Cloud Computing

Data Centre Equipment Market Deployment Type Outlook

  • On-Premises
  • Cloud-Based
  • Hybrid

Report Scope

MARKET SIZE 202483.41(USD Billion)
MARKET SIZE 202588.88(USD Billion)
MARKET SIZE 2035167.65(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)6.55% (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 for enhanced energy efficiency in the Data Centre Equipment Market.
Key Market DynamicsRising demand for energy-efficient solutions drives innovation and competition in the Data Centre Equipment Market.
Countries CoveredNorth America, Europe, APAC, South America, MEA

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FAQs

What is the projected market valuation of the Data Centre Equipment Market by 2035?

The Data Centre Equipment Market is projected to reach a valuation of 167.65 USD Billion by 2035.

What was the market valuation of the Data Centre Equipment Market in 2024?

In 2024, the overall market valuation of the Data Centre Equipment Market was 83.41 USD Billion.

What is the expected CAGR for the Data Centre Equipment Market from 2025 to 2035?

The expected CAGR for the Data Centre Equipment Market during the forecast period 2025 - 2035 is 6.55%.

Which segment is projected to have the highest valuation in the Data Centre Equipment Market by 2035?

By 2035, the Servers segment is projected to reach a valuation between 60.0 and 30.0 USD Billion.

How do small and medium enterprises contribute to the Data Centre Equipment Market?

Small and medium enterprises are expected to contribute between 16.68 and 33.53 USD Billion to the market.

What is the anticipated growth for cloud-based deployment in the Data Centre Equipment Market?

The cloud-based deployment segment is projected to grow to a valuation between 30.0 and 60.0 USD Billion by 2035.

Which key players are leading the Data Centre Equipment Market?

Key players in the Data Centre Equipment Market include Dell Technologies, Hewlett Packard Enterprise, and Cisco Systems, among others.

What is the projected valuation for storage devices in the Data Centre Equipment Market by 2035?

The storage devices segment is projected to reach a valuation between 20.0 and 40.0 USD Billion by 2035.

How does the government sector impact the Data Centre Equipment Market?

The government sector is expected to contribute between 17.71 and 36.08 USD Billion to the Data Centre Equipment Market.

What applications are driving growth in the Data Centre Equipment Market?

Data processing and cloud computing applications are projected to drive growth, with valuations of 30.0 to 60.0 USD Billion and 28.41 to 57.65 USD Billion, respectively.

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