GVR Report cover Data Center As A Service Market Size, Share & Trends Report

Data Center As A Service Market Size, Share & Trends Analysis Report By Infrastructure (Servers, Storage, Networking), By Organization Size, By Vertical, By Region, And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-4-68039-974-9
  • Number of Pages: 160
  • Format: Electronic (PDF)
  • Historical Range: 2018 - 2020
  • Industry: Technology

Report Overview

The global data center as a service market size was valued at USD 52.7 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 26.2% from 2022 to 2030. Data center-as-a-service (DCaaS) provides enterprises with the ability to shift away from physical infrastructure, thereby facilitating savings on overhead costs.  Some of the prime factors contributing to market growth include the high data center ownership cost, the proliferation of connected devices, and the emerging Metaverse concept. Furthermore, data center-as-a-service offers enterprises a cost-effective way to scale up their IT operations without deploying physical resources, which is further anticipated to accelerate the adoption of data center-as-a-service.

North America data center as a service market size, by infrastructure, 2020 - 2030 (USD Billion)

The COVID-19 outbreak led to the suspension of several operations across various verticals as well as halted many data center constructions. However, this barely had any impact on the DCaaS market due to the social distancing norms and the work-from-home culture adopted by companies. The pandemic outbreak compelled several companies to migrate their entire IT infrastructure to the cloud due to rising data volumes. Several enterprises are expected to opt for data centers as a service owing to the large volume data handling capacity compared to on-premises data centers.

According to a survey conducted by Rackspace Technology in association with Google Cloud in 2021, out of more than 1,400 IT executives, 51% of them mentioned that their infrastructure now resides in the cloud and 49% mentioned their plans to shift the workloads from on-premises infrastructure to cloud. Furthermore, the pandemic contributed to an increased usage of social media and digital technologies, which contributed to the increase in data volumes globally. The increasing migration towards cloud computing is anticipated to drive the adoption of data centers as a service. As a result, the COVID-19 outbreak impacted the market positively resulting in positive growth during the pandemic, which is expected to continue over the forecast period.

Data center-as-a-service minimized the need for operators as well as large spaces. This concept makes it possible to reduce the manpower in an enterprise’s private data centers by taking advantage of external cloud service providers. Additionally, it enables vendors to build data centers that can be easily serviced by robots, with minimum intervention of humans. This facilitates automation and enables a more densely packed footprint of data centers, subsequently cutting down on operational costs.

One of the significant concerns of the DCaaS model is business continuity and availability. Any downtime at the end of provider or WAN disruption could leave DCaaS applications unavailable. Although the availability of DCaaS is a service-level agreement, unexpected downtimes are expected to have serious implications. Additionally, DCaaS being a component of cloud computing is also vulnerable to various cyber threats. Such factors related to data availability and security are anticipated to pose a challenge to market growth.

Infrastructure Insights

The servers segment held the largest share of more than 50.0% in 2021 and is expected to retain its dominance over the forecast period. The rising adoption of various digital technologies such as artificial intelligence, the internet of things, and machine learning has created a need for sophisticated IT infrastructure. Furthermore, the demand for high-performance computing servers is increasing to cater to various solutions and applications, including big data analytics, software-defined solutions, and hyper-converged infrastructure. Additionally, the need for faster processing speeds to process large data volumes is expected to increase the adoption in academic institutions, defense agencies, and the government, which is expected to fuel market growth.

The storage segment is anticipated to register the highest growth rate over the forecast period. The growth of this segment can be attributed to the rise in the volume of structured and unstructured data. Further, the rising usage of digital platforms and streaming services during the pandemic is anticipated to contribute to the growth of the storage segment. Additionally, the growing need for seamless and quick data sharing is expected to drive the networking segment.

Organization Size Insights

Large enterprises held the largest revenue share of over 50.0% in 2021. Several large enterprises are engaged in upgrading their IT environment in order to run advanced applications and processes based on IoT technologies and big data analytics. Additionally, large enterprises process a large volume of data owing to which they need massive storage capacities. These factors are anticipated to increase the adoption of the DCaaS model in large enterprises.

SMEs are expected to register the fastest growth rate over the forecast period. Several SMEs are saving huge capital expenditures as they are increasingly outsourcing services by choosing a third-party data center over on-site IT infrastructure. As such, DCaaS provides them with a suitable option to shift their workloads to the cloud and cut down on overhead costs. In developing countries, government initiatives are propelling the adoption of data centers across SMEs, which bodes well for market growth. For instance, several SMEs are expected to adopt data center services owing to government initiatives such as ‘Atal Incubation' and ‘Digital India’, which are anticipated to favor market growth. 

Vertical Insights

The IT and telecom segment accounted for the largest revenue share of more than 20.0% in 2021. The introduction of 5G and the rise in global internet traffic are expected to generate a large amount of data in the forthcoming years. In 2022, the World Bank Group predicts that the total amount of internet traffic is expected to reach 4.8 zettabytes, an increase of about 50 percent from 2020. Furthermore, increasing mobile connections globally are anticipated to elevate the demand for DCaaS, subsequently contributing to market growth in the future.

Global data center as a service market share, by vertical, 2021 (%)

The healthcare segment is anticipated to exhibit the highest growth rate over the forecast period. This growth is attributed to the growing focus on securing patient data and the use of advanced technological equipment in the healthcare sector. Further, the BFSI segment is expected to witness significant growth over the forecast period owing to the growing dependence on internet banking and increasing penetration of mobile wallets and online payment applications. Additionally, several banks are migrating their workloads to the cloud, which is expected to foster market growth.

Regional Insights

The North American market accounted for the largest revenue share of over 35.0% in 2021. Technological advancements and the demand for data processing across diverse verticals are anticipated to propel market growth. Additionally, government initiatives and strong telecom networks are expected to fuel the adoption of DCaaS across the region. Stringent data protection laws across European countries are anticipated to drive the demand for DCaaS in Europe.

Data Center As A Service Market Trends by Region

Asia Pacific is expected to register the highest growth rate over the forecast period. This growth can be attributed to the increasing deployment of data centers to cater to large data volumes. Further, the extensive telecom network and rising usage of digital services across the region are expected to favor market growth. Additionally, the growing number of startups and SMEs in the region are expected to fuel the adoption of DCaaS.

Key Companies & Market Share Insights

The market is highly consolidated with the presence of major cloud service providers such as Amazon web services; Google, Inc.; and Microsoft Corporation. These companies are focused on expanding their market reach by establishing partnerships and providing value-added services as a part of DCaaS. Further, the competition in the DCaaS market is expected to grow as several IT infrastructure vendors such as IBM and Hewlett Packard Enterprise Development LP are engaged in offering Infrastructure-as-a-Service, which is expected to help them make inroads in the DCaaS market. Some prominent players in the global data center as a service market include:

  • Amazon.com, Inc.

  • Microsoft Corporation

  • IBM

  • Hewlett Packard Enterprise Development LP

  • Alibaba

  • Huawei Technologies Co., Ltd.

  • Dell Technologies, Inc.

Data Center As A Service Market Report Scope

Report Attribute


Market size value in 2022

USD 71.9 billion

Revenue forecast in 2030

USD 461.4 billion

Growth rate

CAGR of 26.2% from 2022 to 2030

Base year for estimation


Historical data

2018 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD million/billion and CAGR from 2022 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Infrastructure, organization size, vertical, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; France; China; India; Japan; Brazil; Mexico

Key universities profiled

Amazon.com, Inc.; Microsoft Corporation; Hewlett Packard Enterprise Development LP; Alphabet (Google); IBM; Alibaba; Huawei Technologies Co., Ltd.; Dell Technologies, Inc.

Customization scope

Free report customization (equivalent to up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope.

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Global Data Center As A Service Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities from 2018 to 2030 in each of the sub-segments. For this study, Grand View Research has segmented the global data center-as-a-service market report based on infrastructure, organization size, vertical, and region:

Global Data Center As A Service Market Segmentation

  • Infrastructure Outlook (Revenue, USD Million, 2018 - 2030)

    • Servers

    • Storage

    • Networking

  • Organization Size Outlook (Revenue, USD Million, 2018 - 2030)

    • SMEs

    • Large Enterprises

  • Vertical Outlook (Revenue, USD Million, 2018 - 2030)

    • Retail

    • BFSI

    • IT & Telecom

    • Healthcare

    • Manufacturing

    • Others

  • Regional Outlook (Revenue, USD Million, 2018 - 2030)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

      • Rest of Europe

    • Asia Pacific

      • India

      • China

      • Japan

      • Rest of Asia Pacific

    • Latin America

      • Brazil

      • Mexico

      • Rest of Latin America

    • Middle East & Africa

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