Carbon Neutral Data Center Market Size In 2020: Top Countries Data with CAGR Value
The carbon neutral data center market is projected to grow from $3.46 billion in 2020 to $9.42 billion by 2025, at a CAGR of 22.17% from 2020 to 2025. The growth in the carbon neutral data center market is expected to be driven by various government policies and environmental regulations especially which are aligned to reducing carbon emissions, for example, the International Climate Agreement. Apart from this, the ongoing trend of Industry 4.0 and digital transformation, which has increased the amount of data being produced due to the data intensive nature of the applications, has significantly impacted the market.
Read Report Overview: Carbon Neutral Data Center Market
The carbon neutral data center market by industry has the largest share in the IT and telecom industry, followed by the BFSI industry. The IT and telecom industry or the ICT industry is a data-driven industry. Almost all the applications are data intensive and generate a huge amount of data in the entire value chain. The telecom industry is dependent upon data centers as data transmission during internet services requires constant storage and processing, which is a primary criterion for quality services. Thus, in order to maintain quality, the industry has to rely on data center facilities.
IT and Telecom Industry Segment Dominates Carbon Neutral Data Center Market
The IT and telecom industry is the largest contributor to the demand for the entire data center industry. Similarly, IT and telecom industry also has the largest share in the market for carbon neutral data center. The industry is driven by data transmission and data processing, with the IT industry producing the largest amount data from data intensive applications. The IT and telecom industry is considered to be the backbone for all other industries as communication is a key factor in the growth of the modern economy. Similarly, the banking, financial services and insurance (BFSI) industry also plays a huge role in the economy, and due to the ongoing efforts of dematerialization, the BFSI industry is expected to further push the demand for data centers. The trend for sustainable development is expected to boost the market for carbon neutral data centers in both industries.
Hyperscale Data Centers Generate the Highest Demand in Carbon Neutral Data Center Market
Hyperscale data centers are responsible for cloud services and cloud computing applications. Due to the ongoing trend and increased migration from physical computing to cloud computing, hyperscale data centers are witnessing more demand as compared to other data center types.
Europe is Expected to Drive the Carbon Neutral Data Center Market
Europe dominated the carbon neutral data center market in 2019 and is anticipated to uphold its dominance throughout the forecast period. The growth in the market is majorly driven by the increasing emphasis on sustainable development efforts and government activities to promote environmental protection laws and policies along with large-scale adoption of technologies to support the green initiative. The ongoing trend for digital transformation is having a significant impact on market growth.
The competitive landscape of the carbon neutral data center market consists of different strategies undertaken by major players across the industry to gain market presence. Some of the strategies adopted by the companies are new product launches, business expansions, partnerships, and collaborations.
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Most of the companies have numerous tie-ups with various technology providers and developers. The industry landscape is consolidated and not many companies are active. The market is influenced mostly by government initiatives rather than organizational shift.