Data Center And Network Third Party Hardware Maintenance Service Market
ID: MRFR/ICT/29448-HCR | 100 Pages | Author: Ankit Gupta| October 2024
Data Center and Network Third-Party Hardware Maintenance Service Market Overview
As per MRFR analysis, the Data Center and Network Third-Party Hardware Maintenance Service Market Size was estimated at 22.25 (USD Billion) in 2022.The Data Center And Network Third-Party Hardware Maintenance Service Market Industry is expected to grow from 23.67(USD Billion) in 2023 to 41.2 (USD Billion) by 2032. The Data Center And Network Third-Party Hardware Maintenance Service Market CAGR (growth rate) is expected to be around 6.35% during the forecast period (2024 - 2032).
Key Data Center and Network Third-Party Hardware Maintenance Service Market Trends Highlighted
The Data Center and Network Third-Party Hardware Maintenance Service Market has emerged as a vital segment of the IT industry. This market caters to the growing demand for reliable and cost-effective maintenance of data centers and network hardware. Key drivers include the increasing adoption of cloud computing, virtualization, and software-defined networking (SDN). These technologies place significant demands on hardware infrastructure, necessitating specialized maintenance expertise.Recent trends in the market include the rise of predictive maintenance, remote monitoring, and managed services. Predictive maintenance utilizes advanced analytics to identify potential hardware issues before they occur, minimizing downtime and disruptions. Remote monitoring enables service providers to monitor hardware remotely, proactively identifying and resolving problems. Managed services offer a comprehensive suite of maintenance services, including hardware repair, software updates, and performance optimization.Opportunities for growth lie in the adoption of these emerging technologies, as well as the expanding demand for maintenance services in emerging markets. The increasing complexity of data center and network environments presents opportunities for service providers to offer specialized expertise and value-added services. Partnerships between service providers and hardware manufacturers can further enhance market growth by leveraging complementary capabilities and expanding service offerings.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center and Network Third-Party Hardware Maintenance Service Market Drivers
Rising Demand for Data Center and Network Infrastructure
The adoption of cloud computing, big data analytics, and the Internet of Things is contributing to the growing demand for data centers and networks. Yet, these networks and data centers must be maintained from the technical perspective: the equipment must be functioning in line with its operational requirements to sustain the operations. Impeded by the need to focus on core activities, the modern organization pools a significant share of its data center and network maintenance tasks on third-party circuits.As a result, the demand for third-party hardware maintenance services is on the rise.
Growing Complexity of Data Center and Network Hardware
Third-Party Hardware Maintenance The increasing complexity and specialization of data center and network hardware is also an important driver of the above-mentioned market. As businesses are exploring new, more specialized and advanced systems, they need experienced and skilled technicians to support and maintain their equipment. Due to the specialization and complexity of such equipment, businesses do not always have the required skills or experience.Outsourced hardware maintenance services possess the relevant experience and skills for customers whose hardware is too sophisticated to maintain by themselves.
Cost Savings and Efficiency
The outsourcing of data center and network hardware maintenance provides businesses with both economic and operational benefits. The third-party providers generally have more financial resources and better access to economies of scale; thus, they can afford to distribute the costs of maintenance across a large number of clients. Moreover, these providers are more likely to have access to special tools and equipment designed for particular types of hardware, as well as to have properly trained staff.However, the most important effect of outsourcing maintenance is the ability to redirect the firm’s IT specialists to more significant and sophisticated tasks, thus significantly increasing the overall effectiveness of their performance.
Data Center and Network Third-Party Hardware Maintenance Service Market Segment Insights
Data Center and Network Third-Party Hardware Maintenance Service Market Service Type Insights
The Service Type segment of the Data Center and Network Third-Party Hardware Maintenance Service Market is classified into Break-Fix Maintenance, Preventive Maintenance, Predictive Maintenance, Proactive Maintenance, and Managed Services. Among these, Break-Fix Maintenance accounted for the largest revenue share in 2023, and it is projected to continue its dominance over the forecast period. Break-fix maintenance involves repairing or replacing hardware components after they fail, and it is a cost-effective option for organizations with limited budgets or those that do not require high levels of uptime.Preventive Maintenance, on the other hand, focuses on regular maintenance tasks to prevent hardware failures, thereby reducing the risk of unplanned downtime. It is gaining popularity among organizations that prioritize uptime and data integrity. Predictive Maintenance leverages data analysis and monitoring tools to predict potential hardware failures before they occur, enabling timely interventions and minimizing downtime. Proactive Maintenance goes a step further by implementing proactive measures to optimize hardware performance and prevent failures, resulting in increased efficiency and cost savings.Managed Services provides comprehensive hardware maintenance and support, including remote monitoring, proactive maintenance, and hardware replacement, offering a cost-effective and efficient solution for organizations that lack the expertise or resources to manage their hardware maintenance in-house. The increasing adoption of cloud computing, virtualization, and software-defined networking (SDN) is driving the growth of the Managed Services segment as organizations seek to outsource their hardware maintenance to specialized providers to focus on their core competencies.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center and Network Third-Party Hardware Maintenance Service Market Equipment Type Insights
Data Center and Network Third-Party Hardware Maintenance Service Market Equipment type Servers Storage Networking Security Power Cooling Among these segments, Servers segment held the largest market share of over 35% in 2023, and the segment is expected to continue its dominance over the forecast period. The high adoption of servers in data center applications and the growing adoption of cloud computing services are major driving factors contributing to the growth of this segment. The storage segment is expected to be the fastest-growing segment over the forecast period, as increasing investment in data storage solutions in various industry domains is driving the growth of this segment.The networking segment is also expected to grow at a moderate pace, as increasing demand for high-speed and reliable network connectivity in data centers is driving the growth of this segment. The security segment is also expected to grow at a moderate pace as the increasing adoption of security solutions for ensuring proper security of data, as data centers are increasingly becoming a large target of attacks by hackers. Power and cooling segments are also expected to grow at a steady pace in the coming years.
Data Center and Network Third-Party Hardware Maintenance Service Market Industry Insights
The IT and Telecom industry is expected to dominate the Data Center And Network Third-Party Hardware Maintenance Service Market revenue in 2023, accounting for over 30% of the market share. The increasing adoption of cloud computing, big data analytics, and the Internet of Things (IoT) is driving the demand for data center and network hardware maintenance services. The Financial Services industry is another major segment, with banks and other financial institutions increasingly relying on data centers to manage their critical financial data and applications.The Healthcare industry is also expected to witness significant growth in the coming years as hospitals and other healthcare providers adopt data-intensive technologies such as electronic health records and medical imaging. Other industries that are expected to contribute to the growth of the Data Center and Network Third-Party Hardware Maintenance Service Market include Government, Manufacturing, Retail and Education. The Government sector is increasingly investing in data centers to improve the efficiency of public services and to provide better access to information for citizens.The Manufacturing industry is also adopting data-intensive technologies to improve production efficiency and reduce costs. The Retail industry is using data centers to manage customer data, track inventory, and optimize supply chains. The Education sector is also investing in data centers to provide students with access to online learning resources and to improve the efficiency of educational administration.
Data Center and Network Third-Party Hardware Maintenance Service Market Maintenance Level Insights
The Maintenance Level segment of the Data Center and Network Third-Party Hardware Maintenance Service Market is categorized into on-site, off-site, and remote maintenance. Among these, on-site maintenance accounted for the largest revenue share in 2023, owing to the immediate response and resolution of hardware issues, ensuring minimal downtime for critical data center and network operations. Off-site maintenance offers cost-effective solutions for non-critical hardware issues that can be resolved remotely, while remote maintenance provides proactive monitoring and predictive analytics to prevent potential hardware failures.The increasing adoption of cloud and edge computing is driving the demand for remote maintenance services as organizations seek to enhance operational efficiency and reduce maintenance costs
Data Center and Network Third-Party Hardware Maintenance Service Market Contract Type Insights
The 'Time and Material' segment held the largest market share in 2023, accounting for over 45% of the Data Center and Network Third-Party Hardware Maintenance Service Market revenue. This is attributed to the flexibility and cost-effectiveness of this type of contract, which allows customers to pay only for the services and parts they need. The 'Fixed Price' segment is expected to grow at the highest CAGR during the forecast period, driven by the increasing adoption of cloud and managed services. This type of contract provides customers with a fixed price for a defined set of services, which can help them better manage their IT budgets.The 'Subscription-based' segment is also expected to grow steadily over the forecast period as more and more organizations adopt subscription-based models for their IT infrastructure. This type of contract provides customers with a predictable monthly or annual fee for access to a set of services, which can help them reduce their upfront costs and improve their cash flow.
Data Center and Network Third-Party Hardware Maintenance Service Market Regional Insights
The Data Center and Network Third-Party Hardware Maintenance Service Market is segmented into North America, Europe, APAC, South America and MEA. North America is the largest region in the Data Center and Network Third-Party Hardware Maintenance Service Market, accounting for over 35% of the market revenue in 2023. This is due to the presence of a large number of data centers and network operators in the region. Europe is the second largest region in the Data Center and Network Third-Party Hardware Maintenance Service Market, accounting for over 25% of the market revenue in 2023.The growth of the market in Europe is being driven by the increasing adoption of cloud computing and the growing number of data centers. APAC is the fastest-growing region in the Data Center and Network Third-Party Hardware Maintenance Service Market, with a CAGR of over 10% during the forecast period. The growth of the market in APAC is being driven by the increasing demand for data center services from enterprises and governments. South America and MEA are relatively small regions in the Data Center and Network Third-Party Hardware Maintenance Service Market, but they are expected to grow at a steady pace during the forecast period.The growth of the market in South America is being driven by the increasing demand for data center services from enterprises and governments. The growth of the market in MEA is being driven by the increasing investment in data center infrastructure.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center and Network Third-Party Hardware Maintenance Service Market Key Players and Competitive Insights:
Major players in Data Center and Network Third-Party Hardware Maintenance Service Market industry are focusing on expanding their product portfolio by investing in research and development activities. Leading Data Center and Network Third-Party Hardware Maintenance Service Market players are also adopting various strategies such as mergers and acquisitions, joint ventures, and partnerships to strengthen their market position. The Data Center and Network Third-Party Hardware Maintenance Service Market industry is expected to witness significant growth in the coming years due to the increasing adoption of cloud computing, big data, and artificial intelligence (AI).Leading Data Center and Network Third-Party Hardware Maintenance Service Market player IBM offers a wide range of hardware maintenance services, including proactive support, predictive analytics, and on-site support. IBM has a strong presence and a large customer base, which gives it a competitive advantage in the market. The company is also investing heavily in research and development to stay ahead of the competition. IBM's hardware maintenance services are used by a variety of customers, including large enterprises, small businesses, and government agencies.A prominent competitor in the Data Center and Network Third-Party Hardware Maintenance Service Market is Dell Technologies. Dell Technologies offers a comprehensive suite of hardware maintenance services, including proactive support, predictive analytics, and on-site support. The company has a strong presence and a large customer base, which gives it a competitive advantage in the market. Dell Technologies is also investing heavily in research and development to stay ahead of the competition. Dell Technologies' hardware maintenance services are used by a variety of customers, including large enterprises, small businesses, and government agencies.
Key Companies in the Data Center and Network Third-Party Hardware Maintenance Service Market Include:
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Dell
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DXC Technology
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Johnson Controls
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HCL Technologies
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Atos
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CyrusOne
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Hewlett Packard Enterprise
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Schneider Electric
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Vertiv
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IBM
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Cisco
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Infosys
Data Center and Network Third-Party Hardware Maintenance Service Market Industry Developments
The Data Center and Network Third-Party Hardware Maintenance Service Market is expected to grow from USD 23.67 billion in 2023 to USD 41.2 billion by 2032, at a CAGR of 6.35%. The market is driven by the increasing adoption of cloud and edge computing, which is leading to a greater need for data center and network hardware maintenance services. Additionally, the growing number of connected devices and the increasing complexity of IT infrastructure are also contributing to the growth of the market.Some of the recent news developments and current affairs in the Data Center And Network Third-Party Hardware Maintenance Service Market include:In February 2023, IBM announced the launch of its new AI-powered data center maintenance service, which is designed to help customers improve the efficiency and reliability of their data center operations.In March 2023, Dell Technologies announced the acquisition of Cloudify, a provider of cloud management software, which will help Dell Technologies expand its offerings in the data center and network hardware maintenance market.In April 2023, Google Cloud announced the launch of its new data center maintenance service, which is designed to help customers reduce the cost and complexity of managing their data center infrastructure.These developments indicate that the Data Center And Network Third-Party Hardware Maintenance Service Market is growing rapidly and that there is a strong demand for these services.
Data Center and Network Third-Party Hardware Maintenance Service Market Segmentation Insights
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Data Center and Network Third-Party Hardware Maintenance Service Market Service Type Outlook
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Break-Fix Maintenance
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Preventive Maintenance
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Predictive Maintenance
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Proactive Maintenance
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Managed Services
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Data Center and Network Third-Party Hardware Maintenance Service Market Equipment Type Outlook
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Servers
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Storage
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Networking
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Security
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Power
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Cooling
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Data Center and Network Third-Party Hardware Maintenance Service Market Industry Outlook
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IT and Telecom
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Financial Services
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Healthcare
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Government
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Manufacturing
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Retail
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Education
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Data Center and Network Third-Party Hardware Maintenance Service Market Maintenance Level Outlook
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On-site
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Off-site
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Remote
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Data Center and Network Third-Party Hardware Maintenance Service Market Contract Type Outlook
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Time and Material
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Fixed Price
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Subscription-based
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Data Center and Network Third-Party Hardware Maintenance Service Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric | Details |
| Market Size 2022 | 22.25(USD Billion) |
| Market Size 2023 | 23.67(USD Billion) |
| Market Size 2032 | 41.2(USD Billion) |
| Compound Annual Growth Rate (CAGR) | 6.35% (2024 - 2032) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2023 |
| Market Forecast Period | 2024 - 2032 |
| Historical Data | 2019 - 2023 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | Dell, DXC Technology, Johnson Controls, HCL Technologies, Atos, CyrusOne, Hewlett Packard Enterprise, Schneider Electric, Vertiv, IBM, Cisco, Infosys |
| Segments Covered | Service Type, Equipment Type, Industry, Maintenance Level, Contract Type, Regional |
| Key Market Opportunities | Expanding cloud and edge computing infrastructure Growing adoption of subscription-based models Increased demand for data center uptime and efficiency AI-powered automation and predictive maintenance Growing focus on sustainability and environmental impact |
| Key Market Dynamics | Growing data volumes cloud adoption increasing hardware complexity rising outsourcing trend and focus on cost optimization |
| Countries Covered | North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The market size for Data Center And Network Third-Party Hardware Maintenance Services was valued at 23.67 billion in 2023 and is projected to reach 41.2 billion by 2032, showcasing a CAGR of 6.35%.
North America is expected to remain the dominant region in the Data Center And Network Third-Party Hardware Maintenance Service market throughout the forecast period.
The Enterprise segment is anticipated to hold the largest market share in the Data Center And Network Third-Party Hardware Maintenance Service market due to the growing adoption of third-party maintenance services by enterprises to reduce costs and improve operational efficiency.
Some of the key players in the Data Center And Network Third-Party Hardware Maintenance Service market include IBM, Dell, Hewlett Packard Enterprise, Schneider Electric, and Cisco.
The increasing demand for data center and network infrastructure, the rising adoption of cloud computing and virtualization, and the growing need for cost-effective maintenance solutions are some of the key trends driving the growth of the Data Center And Network Third-Party Hardware Maintenance Service market.
Some of the challenges faced by the Data Center And Network Third-Party Hardware Maintenance Service market include the lack of skilled technicians, the complexity of data center and network infrastructure, and the stringent regulations governing the maintenance of such infrastructure.
The Data Center And Network Third-Party Hardware Maintenance Service market is expected to grow at a CAGR of 6.35% from 2024 to 2032.
The market is expected to witness increased adoption of predictive maintenance and remote monitoring solutions, as well as the emergence of new players and business models.
Some of the opportunities for growth in the Data Center And Network Third-Party Hardware Maintenance Service market include the increasing adoption of data center and network infrastructure, the rising demand for cost-effective maintenance solutions, and the growing need for skilled technicians.
Some of the risks associated with investing in the Data Center And Network Third-Party Hardware Maintenance Service market include the lack of skilled technicians, the complexity of data center and network infrastructure, and the stringent regulations governing the maintenance of such infrastructure.
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