Hyperscale Data Center Market Expected to Witness Wide Growth by 2022: Reports Grand View Research

By CIOReview | Friday, December 18, 2015

FREMONT, CA: Data centers are the key components supporting the explosion of cloud infrastructure services. The spending on cloud infrastructure services alone is growing rapidly every year, signaling a massive need for global data center expansion. New findings from Grand View Research reveals that hyperscale data center market is estimated to grow significantly in the next seven years owing to rising computing, networking, memory and storage resources demand in distributed or grid computing environments, making a huge difference when compared to its revenue in 2015 which is worth of $1Bn.

The report “Hyperscale Data Center Market Analysis, Market Size, Application Analysis, Regional Outlook, Competitive Strategies, and Forecasts, 2015 To 2022” from Grand View Research also says that cloud computing is changing the data storage requirements which is expected to grow rapidly addressing increased product demands that are flexible and cost effective. The key properties of the product include scalability for excellent performance, throughput, and capacity, which provides storage platform for low database transactions, protected data storage and replicated bulk storage.

The ever-increasing investment in hyperscale data centers by cloud companies is influencing the business of original design manufacturers (ODMs) who manufacture and design white-labeled servers. According to the research, the ODMs direct sale to cloud based providers such as Google, Microsoft and Amazon is expected to augment the hyperscale data centers market over the forecast period. In addition, OEM (original equipment manufacturers) hyperscale segment is expected to be the fastest-growing server segment with its wide application scope in web interface, clustered database, bulk data storage, media serving, third-party hosting and data analytics.

The report reveals that the annual global IP traffic is expected to reach two-zettabyte threshold and the video content is expected to account for 80% of the global consumer internet traffic. Web services companies use hyperscale data centers to ingest, transcode, and process videos which is expected to have a significant impact on industry growth over the next seven years. Companies are leveraging hyperscale data centers web services to apply algorithms to their business models for the data analysis and classification processes that are used to recommend content, tag photos and deliver relevant advertising.

The report details some of the major companies such as Google, Facebook, Amazon, Baidu and Alibaba that have already deployed hyperscale infrastructures. The hyperscale data is employed in various application areas including social media, web 2.0, cloud computing, internet commerce, online game hosting and big data. Increasing application scope in the internet banking sectors is expected to create new business avenues for the product over the next seven years.

Traditional enterprise servers include equipments like network switches, storage networks and hot-swappable hardware which are complex in nature and cost in huge for the companies. Hyperscale servers incorporate simple management tools offering operating efficiency with reduced operating expenditures by eliminating the use of hardware component and reduce the consumer cost. The report details key manufacturers in industry like Avago Technologies, Dell, Infinidat and Arista Networks.

North America and Asia Pacific to lead the market by 2022

North America is the largest cloud services market that dominates the hyperscale data center industry on account of increasing investments for technology development and low operation costs. It is expected that Asia Pacific will be the fastest growing market over the forecast period on account of their growing demand for various IT applications.