Global Managed Data Center Services Market Size, Share, Opportunities, And Trends By Type (Managed Hosting, Managed Colocation, Managed Storage, Others), By Enterprise Size (Small Enterprises, Medium Enterprises, And Large Enterprises), By Industry Vertical (Banking And Financial Services, Manufacturing, Communication And Technology, Healthcare, Energy, Education, Government, Media And Entertainment, Others), And By Geography - Forecasts From 2024 To 2029

The managed data center services market is expected to grow at a CAGR of 14.93%, reaching a market size of US$816.782 billion in 2029 from US$308.434 billion in 2022.

Managed hosting and other services like managed colocation and storage fall under managed data center services. On the other hand, the list includes disaster recovery, compliance, network connectivity, and network security, among others. It is believed that managed data center services will be on a rapid growth trajectory for five years to come, given the proliferation of data centers worldwide, which poses challenges when configuring and running these centers. Hence, enterprises are looking towards outsourcing as a primary option that helps them to optimize business processes while keeping control over critical IT infrastructure.

North America is expected to be the major market for managed data centre services, constituting the maximum share, followed by Europe. In contrast, the Asia Pacific region is expected to witness maximum expansion over the forecast period because of high growth observed in the data centre market, favourable government policies, economic growth, and increasing investment toward IT infrastructure.

What are the managed data center services market drivers?

• Increasing adoption of managed data centre services due to their cost-efficiency.

There is an increasing trend toward large and medium enterprises opting for managed data centres owing to their cost-efficiency, flexibility, and improvement in organizational efficiency. The cost of setting up an in-house data centre involves high capital expenditure, along with periodic maintenance expenditure. In addition, an enterprise has to incur high wages for hiring technical staff for upgrading, maintenance, and compliance with stringent government regulations. The space in an in-house data center is also limited, and it can be scaled by increasing the capital expenditure on IT infrastructure. Resultantly, enterprises opt for managed data centres as it saves on huge capital expenditure on IT infrastructure.

In addition, these centres offer flexibility and scalability by offering a pay-per-use model, so any enterprise can increase their use at their convenience without the need to incur any substantial expenditure. This is one of the major factors driving the demand for managed data centre services worldwide. Furthermore, increasing investment towards adopting automation solutions and big data across industry verticals coupled with state-of-the-art services offered by vendors to comply with standard government regulations will further propel the demand for managed data centre services over the forecast period.

• Large enterprises are expected to grow at a high rate

Large enterprises are projected to grow considerably during the forecast period. Huge volumes of data added to these data centres and huge costs associated with running and managing these data centres are steering business owners towards managed data centre services. Small and medium enterprises also hold a significant market share. This market growth among small and medium enterprises is driven by the increasing popularity of data centre colocation among them.

Furthermore, the growth of this market among large enterprises is driven by the rapidly increasing digitization of business processes and the continuously increasing traffic on the internet, both of which add to the huge volumes of data at data centres every day. Currently, large enterprises hold the lion’s share of the total data centre space owned by enterprises and thus hold a major share of the data generated worldwide. Cost reduction continues to be at the forefront of the enterprises’ growth strategies, and the cost of running and maintaining data centres continues to surge exponentially due to increasing data volumes. Therefore, enterprises are cutting back on their investments in the IT workforce and moving towards managed data centre services, thus boosting the market’s growth.

Major challenges hindering the managed data center services market:

• Energy efficiency requirements and general ignorance

The market for managed data center services is being adversely affected by the enormous amount of energy required in data centers and rising temperatures. The lack of understanding about the services is another reason why data center technologies need to be managed. This affects how these services are used, so it's becoming more crucial to focus on educating data center owners about these issues.

Managed Data Center Service Market Geographical Outlook

• Asia Pacific is projected to grow rapidly during the forecast period

It can be associated with expanding data centres to handle massive volumes of data. Furthermore, it is projected that the region's extensive telecom network and expanding use of digital services will facilitate market expansion. Furthermore, it is anticipated that the growing number of SMEs and startups in the area will hasten the usage of data centre services. There is an increase in data produced by digital goods and services in Asia-Pacific. This can be attributed to the increasing population in the area and the growth of e-commerce. The Asia Pacific region is home to two major data centre marketplaces: those serving local demand and those serving domestic demand. These Tier II markets are particularly interesting due to the rapid population growth in these regions, which necessitates additional data centre space.

Key developments in the managed data center services market:

• In August 2023, NTT Ltd., a leading IT infrastructure and services provider, announced that it had been named Amazon Web Services (AWS) first Direct Connect Delivery partner in Thailand following a thorough technical review. With this approval, NTT Thailand's data centres in Bangkok provide companies with a direct, safe link to the AWS cloud anywhere in the world. Through this collaboration, NTT can fulfil its promise to its clients better by delivering cloud connectivity through AWS Direct Connect Services.
• In March 2023, SolarWinds, a leading supplier of easy-to-use, robust, secure IT management software, announced the opening of its first ITSM (information technology service management) data centre in Australia for users of its SolarWinds® Service Desk. Customers of SolarWinds will be able to exhibit compliance with data sovereignty regulations at the Sydney-based data centre, which will also aid in performance and speed improvements. With lower latency for users, faster responsiveness, and improved customer performance in the region, the new ITSM data centre is expected to improve the SolarWinds software as a service (SaaS)-delivered offering and increase customer availability to businesses throughout the Asia-Pacific and Japan (APJ) region in addition to Australian customers.

Managed Data Center Services Market is analyzed into the following segments:

• By Type
  • Managed Hosting
  • Managed Colocation
  • Managed Storage
  • Others
• By Enterprise Size
  • Small Enterprises
  • Medium Enterprises
  • Large Enterprises
• By Industry Vertical
  • Banking and Financial Services
  • Manufacturing
  • Communication and Technology
  • Healthcare
  • Energy
  • Education
  • Media and Entertainment
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Others
  • Middle East and Africa
    • UAE
    • Saudi Arabia
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Indonesia
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key Benefits to the Stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. MANAGED DATA CENTRE SERVICES MARKET BY TYPE

5.1. Introduction

5.2. Managed Hosting

5.3. Managed Colocation

5.4. Managed Storage

5.5. Others

6. MANAGED DATA CENTRE SERVICES MARKET BY ENTERPRISE SIZE

6.1. Introduction

6.2. Small Enterprises

6.3. Medium Enterprises

6.4. Large Enterprises

7. MANAGED DATA CENTRE SERVICES MARKET BY INDUSTRY VERTICAL

7.1. Introduction

7.2. Banking and Financial Services

7.3. Manufacturing

7.4. Communication and Technology

7.5. Healthcare

7.6. Energy

7.7. Education

7.8. Media and Entertainment

7.9. Others

8. MANAGED DATA CENTRE SERVICES MARKET BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. By Type

8.2.2. By Enterprise Size

8.2.3. By Industry Vertical

8.2.4. By Country

8.2.4.1. USA

8.2.4.2. Canada

8.2.4.3. Mexico

8.3. South America

8.3.1. By Type

8.3.2. By Enterprise Size

8.3.3. By Industry Vertical

8.3.4. By Country

8.3.4.1. Brazil

8.3.4.2. Argentina

8.3.4.3. Others

8.4. Europe

8.4.1. By Type

8.4.2. By Enterprise Size

8.4.3. By Industry Vertical

8.4.4. By Country

8.4.4.1. UK

8.4.4.2. Germany

8.4.4.3. France

8.4.4.4. Others

8.5. Middle East and Africa

8.5.1. By Type

8.5.2. By Enterprise Size

8.5.3. By Industry Vertical

8.5.4. By Country

8.5.4.1. UAE

8.5.4.2. Saudi Arabia

8.5.4.3. Israel

8.5.4.4. Others

8.6. Asia Pacific

8.6.1. By Type

8.6.2. By Enterprise Size

8.6.3. By Industry Vertical

8.6.4. By Country

8.6.4.1. China

8.6.4.2. Japan

8.6.4.3. India

8.6.4.4. South Korea

8.6.4.5. Indonesia

8.6.4.6. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. DXC Technology Company

10.2. Dell Inc.

10.3. HCL Technologies Limited

10.4. Fujitsu

10.5. KKR (Ensono)

10.6. Blackstone Funds (QTS Realty Trust)

10.7. DigitalOcean (Cloudways Ltd.)

DXC Technology Company

Dell Inc.

HCL Technologies Limited

Fujitsu

KKR (Ensono)

Blackstone Funds (QTS Realty Trust)

DigitalOcean (Cloudways Ltd.)