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The data center equipment market size was valued at US$ 242.74 billion in 2024 and is expected to reach US$ 669.29 billion by 2031; it is estimated to register a CAGR of 15.7% during 2025–2031. The growing interest in Advanced RISC Machine (ARM) servers in data centers is likely to bring new market trends.
Data Center Equipment Market Analysis
The data center equipment market has witnessed significant growth in recent years, driven by the increasing demand for digital services, cloud computing, and data storage solutions. As businesses and consumers rely more on digital platforms for daily activities, the need for robust, secure, and scalable data infrastructure has escalated. Data centers, which are facilities used to house critical IT systems and components such as servers, storage systems, networking equipment, and cooling systems, have become pivotal in supporting the growing volume of data. The market for data center equipment is primarily fueled by the rising investments in new data centers and a growing reliance on compute-intensive workloads. The proliferation of IoT devices and the growing focus on sustainability and energy-efficient equipment are expected to provide lucrative opportunities for the data center equipment market growth. The increasing interest in Advanced RISC Machine (ARM) servers in data centers is likely to be a key trend in the data center equipment market.
Data Center Equipment Market Overview
Data center equipment refers to the physical infrastructure and hardware necessary for storing, processing, and managing data. This equipment works together to ensure that a data center can store, process, manage, and secure large volumes of data and provide reliable network services. Data center equipment is designed for high durability and reliability, typically incorporating redundancy and failover mechanisms to ensure consistent availability. The components of data centers allow for the efficient processing, storage, and distribution of large amounts of data. Data center equipment includes servers, storage devices, cooling equipment, power distribution units (PDUs), racks, and enclosures. This equipment is crucial for ensuring that data centers function efficiently, securely, and with high availability.
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Data Center Equipment Market: Strategic Insights
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Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Data Center Equipment Market: Strategic Insights
Naveen
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Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
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Data Center Equipment Market Drivers and Opportunities
Rising Investments in Data Centers
The world's data generation and consumption are increasing exponentially, driven by big data analytics, artificial intelligence, cloud computing, and the Internet of Things (IoT). This necessitates more data centers to store, process, and distribute this data, leading to a rising investment in data centers. Businesses are increasingly investing in building and expanding their data center infrastructure to meet the growing demands for data storage, processing, and management. A few instances are given below.
- In January 2025, a joint venture among OpenAI, Softbank, and Oracle planned to invest US$ 100 billion in artificial intelligence infrastructure, with the potential to scale up to US$ 500 billion. This investment includes the construction of 10 data centers, including one already under construction in Abilene, Texas. Each facility will span about 500,000 square feet.
- In February 2025, Blackstone Group and its development partner Panchshil Realty planned to develop India's single largest hyperscale data center with 500 MW capacity in Navi Mumbai with an investment of over US$ 2.3 billion (~? 20,000 crore). The 500 MW facility will cover 3 million sq ft across 14 buildings and operate on up to 65% renewable energy.
Due to the significant increase in investments in building new data centers, these facilities will need advanced equipment such as servers, storage devices, cooling systems, and power distribution units (PDUs). These components are essential for effectively storing, processing, and distributing large volumes of data, driving growth in the data center equipment market.
Increasing Adoption of IoT Devices
The Internet of Things (IoT) describes an extensively broad network of interconnected devices along with technologies that enable communications between these devices and the cloud. Recently, there has been a massive surge in the adoption of IoT technologies due to advancements in mobile and wireless connectivity technologies. Several industries are using IoT to improve efficiency and reduce the costs of their operations. According to IoT Analytics' State of IoT Summer 2024 report, there were 16.6 billion connected IoT devices by the end of 2023, and this figure is expected to rise to ~25.44 billion by 2030. As per a forecast by IoT Analytics, 75% of the total devices in use would be IoT by 2030.
As IoT devices continue to proliferate across industries, from smart homes and healthcare to manufacturing and transportation, the demand for data processing, storage, and management is skyrocketing. This surge in connected devices directly impacts the data center equipment industry, as these devices generate vast amounts of data that need to be stored, processed, and analyzed in real time, creating demands for powerful servers, storage solutions, and networking equipment capable of efficiently processing and managing this vast amount of data. Thus, increasing adoption of IoT devices is anticipated to provide lucrative opportunities for the data center equipment market growth.
Data Center Equipment Market Report Segmentation Analysis
Key segments that contributed to the derivation of the data center equipment market analysis are equipment type and tier type.
- Based on equipment type, the market is segmented into server, storage devices, cooling equipment, power distribution units (PDUs), racks, enclosures, and others. The server segment is further categorized into rack server, blade server, and tower server. The cooling equipment segment is subsegmented into air conditioners, chillers, air handling units, heat exchangers, and others. The power distribution units (PDUs) segment is further divided into switched rack PDU, metered rack PDU, monitored rack PDU, and basic rack PDU. The racks segment is segmented into enclosed racks, open frame racks, wall mount racks, and others. The servers segment dominated the market in 2024.
- Based on tier type, the data center equipment market is segmented into tier 3, tier 4, tier 1, and tier 2. The tier 3 segment dominated the market in 2024.
Data Center Equipment Market Share Analysis by Geography
- The data center equipment market is segmented into five major regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the data center equipment market in 2024. Europe is the second-largest contributor to the global data center equipment market, followed by Asia Pacific.
- The data center equipment market in North America is segmented into the US, Canada, and Mexico. North America is one of the frontrunners in terms of technological innovations and adoption. The rise in investments in data centers fuels the demand for data center equipment as businesses expand their digital infrastructure. This growth drives the need for more powerful servers, cooling systems, and networking devices to handle increasing data traffic and storage requirements. Companies in the region are working to establish facilities for artificial intelligence and cloud hyperscale businesses. This effort drives the market by creating specialized data centers that fulfill the high demands of performance, scalability, and energy efficiency required by these technologies. The rise of artificial intelligence (AI) workloads is transforming the data center sector, creating an unprecedented need for power-intensive infrastructure. AI organizations are rapidly affecting site selection, design, and operational needs, focusing on markets that offer scalable power capacity and innovative connectivity solutions. For example, in March 2025, Related Companies, L.P, a US real estate company, launched a new data center development unit and plans to build out gigawatts of capacity across the US and Canada. Related claims a near-term US$ 45 billion development pipeline totaling 5GW across the US and Canada. As AI and cloud computing require vast amounts of computational power and storage, data centers must be equipped with cutting-edge infrastructure, such as high-density servers and advanced cooling systems. This specialized focus accelerates the demand for data center equipment, such as advanced servers, networking devices, and energy-efficient solutions, which, in turn, fuels the market's growth.
Data Center Equipment Market Report Scope
Data Center Equipment Market News and Recent Developments
The data center equipment market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the data center equipment market are listed below:
- ABB acquired a minority stake in North Carolina company DG Matrix to support the commercialization of solid-state power electronics for generative AI data centers and renewable microgrids. The company’s Power Router platform replaces conventional systems with an all-in-one solution that is up to five times smaller and has a best-in-class energy efficiency of 98 percent. Financial details of the investment were not disclosed.
(Source: ABB, Press Release, March 2025)
- Legrand announced the acquisition of Computer Room Solutions (CRS), a leader in Data Centre infrastructure. With close to 20 years in operation, CRS is a premier player in the design, development, and commissioning of data center infrastructure.
(Source: Legrand, Press Release, April 2025)
Data Center Equipment Market Report Coverage and Deliverables
The "Data Center Equipment Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:
- Data center equipment market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Data center equipment market trends, as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST and SWOT analysis
- Data center equipment market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the data center equipment market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
Growing interest in advanced risc machine (ARM) servers in data centers is the future trends of the global data center equipment market.
The key players holding majority shares, in global data center equipment market are Legrand; Dell Technologies Inc.; ABB; Eaton; and Vertiv Group Corp.
The global data center equipment market is expected to reach US$ 669.29 billion in the year 2031.
Rising investments in data centers and growing reliance on compute-intensive workloads are the driving factors impacting the global data center equipment market.
The global data center equipment market was valued at US$ 242.74 billion in 2024 and is projected to reach US$ 669.29 billion by 2031; it is expected to grow at a CAGR of 15.7% during 2025–2031.
The North America held the largest market share in 2024, followed by Europe and APAC.
The List of Companies - Data Center Equipment Market
- ABB Ltd
- Legrand SA
- Schneider Electric SE
- Rittal GmbH & Co KG
- Eaton Corp Plc
- Dell Technologies Inc
- Honeywell International Inc
- Vertiv Group Corp.
- Delta Electronics Inc
- Cisco Systems Inc.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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