Data Center Equipment Market Growth Fueled by AI and Cloud Adoption — USD 137.99 Billion by 2035 (CAGR 6.2%)

The Data Center Equipment Market is undergoing robust growth as enterprises, hyperscalers, and colocation providers increasingly invest in modern infrastructure to support digital transformation, cloud adoption, and high-performance computing. Valued at USD 71.2 billion in 2024, the market is forecasted to reach USD 75.61 billion in 2025 and expand to USD 137.99 billion by 2035 at a CAGR of 6.2%.

Market Overview & Forecast

• Market Size 2024: USD 71.2 Billion
• Market Size 2025: USD 75.61 Billion
• Market Size 2035: USD 137.99 Billion
• CAGR (2025–2035): 6.2%
• Base Year: 2024
• Market Forecast Period: 2025–2035
• Historical Data: 2019–2023
• Market Forecast Units: USD Billion
• Report Coverage: Revenue Forecast, Competitive Landscape, Growth Factors, and Trends

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Competitive Landscape

Key players in the Data Center Equipment Market focus on innovation, energy efficiency, and global expansion:

• Siemens
• Emerson Electric Co.
• S Electric
• Schneider Electric
• Dell Technologies
• IBM
• General Electric
• Eaton
• ABB
• Hewlett Packard Enterprise
• Rittal
• Vertiv
• Cisco Systems
• Huawei Technologies

Key Market Drivers

• Cloud Computing Adoption: Increasing reliance on cloud infrastructure fuels demand for servers, storage systems, and networking equipment.
• Rising Demand for Data Storage: Explosive growth in digital data from enterprises, IoT devices, and social media drives the need for high-capacity storage solutions.
• Technological Advancements: AI-powered data center management, virtualization, and high-performance computing enhance operational efficiency.
• Energy Efficiency Focus: Companies invest in energy-efficient power, cooling, and management solutions to reduce operational costs and carbon footprint.
• Growing Need for Colocation Services: Outsourcing data center operations encourages adoption of standardized, high-performance equipment.

Key Market Opportunities

• Integration of AI-driven data center management systems for predictive maintenance and optimized performance.
• Expansion of edge computing infrastructure to support latency-sensitive applications.
• Rising demand for cloud and colocation services across enterprises and hyperscale providers.
• Proliferation of IoT devices creating a surge in data generation and storage requirements.
• Advancements in liquid cooling and immersion cooling solutions for high-density environments.

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Market Segmentation

By Component:

• Servers
• Storage Systems
• Networking Equipment
• Cooling & Power Systems

By Form Factor:

• Rack-mount
• Blade
• Tower
• Modular/Data Center-in-a-Box

By Deployment Model:

• On-Premises
• Cloud
• Colocation

By Vertical:

• BFSI (Banking, Financial Services, and Insurance)
• IT & Telecom
• Healthcare
• Manufacturing
• Retail
• Government
• Others

By Region:

• North America
• Europe
• Asia Pacific (APAC)
• South America
• Middle East & Africa (MEA)

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Geographical Insights

• North America: Leads the market due to strong adoption of cloud services, edge computing, and high investment in data center modernization.
• Europe: Growth is supported by regulatory compliance, energy efficiency initiatives, and demand for hyperscale data centers.
• Asia Pacific: Rapid expansion driven by digitalization, growing IT infrastructure, and demand for colocation services.
• South America & MEA: Moderate growth due to rising cloud adoption, telecom expansion, and digital transformation projects.

Future Outlook

The Data Center Equipment Market is set to experience accelerated growth over the next decade. Adoption of AI-powered management, cloud and colocation services, edge computing infrastructure, and advanced cooling technologies will be critical drivers. With the market expected to reach USD 137.99 billion by 2035 at a CAGR of 6.2%, equipment providers and data center operators must focus on innovation, energy efficiency, and scalable solutions to capitalize on the growing demand across global regions.

Read the Research Report Insights in Regional Language:

数据中心设备市场 | Marché des équipements de centres de données | データセンター機器市場 | Markt für Rechenzentrumsausrüstung | 데이터 센터 장비 시장 | Mercado de equipos para centros de datos

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