Global Data Center Renovation Market Overview:
Data Center Renovation Market Size was estimated at 8.59 (USD Billion) in 2022. The Data Center Renovation Market Industry is expected to grow from 9.58(USD Billion) in 2023 to 25.5 (USD Billion) by 2032. The Data Center Renovation Market CAGR (growth rate) is expected to be around 11.49% during the forecast period (2024 - 2032).
Key Data Center Renovation Market Trends Highlighted
The Data Center Renovation Market is experiencing notable growth due to several key drivers: increasing demand for data storage and processing, rising energy costs, and advancements in cooling technologies. The market is expected to witness substantial opportunities in the near future, particularly in the areas of sustainability, efficiency, and digital transformation.
Recent trends in the Data Center Renovation Market include the adoption of cloud computing, edge computing, and artificial intelligence (AI). These technologies are driving the need for more efficient and scalable data centers, which in turn is fueling demand for renovation services. The market is also characterized by a growing emphasis on sustainability, with businesses seeking to reduce their carbon footprint and improve energy efficiency.
Another important trend in the Data Center Renovation Market is the rise of modular and prefabricated data centers. These solutions offer faster deployment times and greater flexibility compared to traditional construction methods. They are becoming increasingly popular for businesses looking to meet rapidly changing capacity and infrastructure needs.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center Renovation Market Drivers
Rising Demand for Data Center Modernization
The increasing adoption of cloud computing, big data analytics, and artificial intelligence (AI) is driving the need for data centers that are more efficient, scalable, and secure. As a result, many businesses are investing in data center renovation projects to upgrade their existing facilities to meet these new demands. The Data Center Renovation Market Industry is expected to grow significantly as the demand for cloud computing and other data-intensive applications continues to rise.
Growing Adoption of Edge Computing
Edge computing is a distributed computing paradigm that brings computation and data storage resources closer to the edge of the network, where data is generated and consumed. This reduces latency and improves performance for applications that require real-time data processing. The growing adoption of edge computing is driving the need for data center renovation projects to create new edge data centers or upgrade existing ones to support edge computing workloads.
Government Regulations and Compliance
Governments around the world are implementing stricter regulations and compliance requirements for data centers, including those related to energy efficiency, security, and disaster recovery. These regulations are driving the need for data center renovation projects to ensure compliance and avoid penalties.
Data Center Renovation Market Segment Insights:
Data Center Renovation Market Renovation Type Insights
The Data Center Renovation Market segmentation by Renovation Type into Mechanical Renovation, Electrical Renovation, and Infrastructure Renovation provides critical insights into the diverse renovation needs of data centers. The market growth for Mechanical Renovation is primarily driven by the increasing need to upgrade and replace aging HVAC systems, cooling infrastructure, and other mechanical components to enhance energy efficiency and reliability. The Electrical Renovation segment is expected to witness significant demand due to the growing adoption of high-density computing and the need for robust power distribution and backup systems.Infrastructure Renovation involves upgrades to physical infrastructure, such as raised floors, cable management systems, and security systems, to accommodate evolving IT requirements and ensure optimal data center performance. The market for Infrastructure Renovation is expected to expand as data centers strive to meet the demands of emerging technologies like cloud computing, artificial intelligence, and machine learning. The Data Center Renovation Market revenue for each segment is projected to grow steadily in the coming years, driven by the increasing adoption of cloud and edge computing, the need for data center consolidation, and the growing emphasis on sustainability and energy efficiency.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center Renovation Market Renovation Goal Insights
Improved Energy Efficiency, Increased Capacity and Density, and Modernization and Upgrading are the key renovation goals driving the Data Center Renovation Market revenue. Data centers consume a significant amount of energy, and improving energy efficiency is a major concern for many organizations. Renovations to improve energy efficiency can include upgrading to more efficient cooling systems, lighting, and servers. Increasing capacity and density is another key driver of Data Center Renovation Market segmentation. As businesses continue to generate and store more data, they need data centers that can accommodate this growth.Renovations to increase capacity and density can include expanding existing data centers, adding new data centers, or upgrading to more densely packed equipment. Modernization and upgrading are also a key trend in the Data Center Renovation Market data. Data centers need to be regularly modernized and upgraded to keep up with the latest technologies and security standards. Renovations for modernization and upgrading can include replacing outdated equipment, upgrading to new software, and implementing new security measures. The Data Center Renovation Market Statistics show that the Improved Energy Efficiency segment is expected to grow at a CAGR of 12.5% from 2024 to 2032, reaching a market valuation of USD 12 billion by 2032.The Increased Capacity and Density segment is expected to grow at a CAGR of 11.8% from 2024 to 2032, reaching a market valuation of USD 10 billion by 2032. The Modernization and Upgrading segment is expected to grow at a CAGR of 10.5% from 2024 to 2032, reaching a market valuation of USD 8 billion by 2032. These segments are expected to drive the growth of the Data Center Renovation Market industry in the coming years.
Data Center Renovation Market Infrastructure Component Insights
The Data Center Renovation Market is segmented into Infrastructure Components, which include Cooling Systems, Power Systems, Racks and Enclosures, and Security Systems. The Infrastructure Component segment is expected to grow significantly over the forecast period due to the increasing demand for data centers to support the growing volume of data. Cooling Systems are a critical component of data centers as they help to maintain a consistent temperature and humidity level. The market for Power Systems is expected to grow from USD 2.8 billion in 2023 to USD 5.8 billion by 2032, at a CAGR of 11.49% over the forecast period. Racks and Enclosures are used to house the IT equipment in data centers.
Data Center Renovation Market Data Center Age Insights
The Data Center Renovation Market is segmented by Data Center Age into '0-5 Years', '6-10 Years', '11-15 Years', '16-20 Years', and 'Over 20 Years'. Among these segments, the '0-5 Years' segment held the largest market share in 2023, accounting for nearly 40% of the global market revenue. This segment is expected to continue its dominance over the forecast period, owing to the growing demand for data center renovations to meet the increasing demand for data storage and processing. The '6-10 Years' segment is also expected to witness significant growth during the forecast period, as data centers in this age range are reaching the end of their useful life and require significant upgrades to remain operational.The '11-15 Years', '16-20 Years', and 'Over 20 Years' segments are expected to experience slower growth rates, as data centers in these age ranges are typically more expensive to renovate and may require complete replacement.
Data Center Renovation Market Regional Insights
The regional segmentation of the Data Center Renovation Market presents distinct growth patterns and opportunities. North America, a prominent region, is expected to hold a significant market share due to the presence of leading data center operators and the increasing demand for data storage and processing. The region is projected to witness steady growth, driven by the adoption of cloud computing and the proliferation of data-intensive applications. Europe, another key region, is expected to exhibit robust growth, fueled by the rising demand for energy-efficient and sustainable data centers.The region is home to several hyperscale data center providers and is experiencing increasing investments in data center infrastructure. APAC is anticipated to be a rapidly growing region, with countries like China, India, and Japan leading the charge. The region's growing digital economy and urbanization are driving the demand for data center renovation services. South America and MEA are expected to experience moderate growth, with the adoption of advanced technologies and the increasing need for data storage facilities. Overall, the regional segmentation of the Data Center Renovation Market reflects the varied market dynamics and growth potential across different regions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center Renovation Market Key Players And Competitive Insights:
The Data Center Renovation Market industry is extremely competitive, with a huge range of companies striving to establish their dominance in the global economy. The main players in the Data Center Renovation Market are concentrated on expanding their global presence as well as diversifying their service offerings. The Data Center Renovation Market industry is experiencing considerable expansion because of the rising emphasis on infrastructure improvements to improve efficiency and decrease operational expenses. Due to the growing number of data centers being built and renovated all over the world, there is a growing demand for data center renovation services. To gain a competitive edge in the market, key players are regularly investing in research and development (R&D) to provide innovative solutions that satisfy the changing needs of data center operators. The leading Data Center Renovation Market players are well-positioned to gain from the rising need for data center renovations as a result of their considerable experience and technological prowess in the sector.Schneider Electric is a leading Data Center Renovation Market player with a reputation for delivering comprehensive solutions for data center design, construction, and management. They provide a variety of services, such as electrical distribution, cooling, security, and monitoring, to guarantee that data centers work at optimal levels of efficiency and dependability. Schneider Electric has developed, through strategic acquisitions and collaborations, to provide a complete range of data center renovation services. They have built solid connections with key industry participants along the whole data center supply chain, which has aided their market expansion. Schneider Electric is well-positioned to capitalize on the growing demand for data center renovation services thanks to its extensive global presence and commitment to innovation.Another key competitor in the Data Center Renovation Market is Johnson Controls. They provide a variety of services, including consulting, design, installation, and maintenance, with a focus on sustainability and energy efficiency in data centers. To meet the unique needs of each customer, Johnson Controls provides customized renovation solutions that improve data center performance, lower operating costs, and extend the life of the facility. They have developed a strong customer base across several sectors because of their knowledge of data center technologies and dedication to client satisfaction. Johnson Controls is well-positioned to seize the expanding potential in the data center renovation market thanks to its global presence and emphasis on sustainability.
Key Companies in the Data Center Renovation Market Include:
Data Center Renovation Industry Developments
The Data Center Renovation Market is projected to grow from USD 9.58 billion in 2023 to USD 25.5 billion by 2032, at a CAGR of 11.49% during the forecast period. The market is driven by factors such as the increasing demand for data center services, the need to upgrade existing data centers to meet the latest technology standards, and the growing adoption of cloud computing and virtualization.Recent news developments and current affairs in the market include:In January 2023, Vertiv announced the launch of its new Liebert DSE data center cooling system, which is designed to improve energy efficiency and reduce operating costs.In March 2023, Schneider Electric acquired the data center infrastructure management provider Struxureware. This acquisition is expected to strengthen Schneider Electric's position in the data center renovation market.In May 2023, Google announced plans to invest USD 1 billion in data center renovations in the United States. This investment is expected to create new jobs and boost the local economy.These developments highlight the growing importance of data center renovation and the opportunities available in this market.
Data Center Renovation Market Segmentation Insights
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Data Center Renovation Market Renovation Type Outlook
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Data Center Renovation Market Renovation Goal Outlook
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Improved Energy Efficiency
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Increased Capacity and Density
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Modernization and Upgrading
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Data Center Renovation Market Infrastructure Component Outlook
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Cooling Systems
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Power Systems
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Racks and Enclosures
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Security Systems
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Data Center Renovation Market Data Center Age Outlook
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0-5 Years
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6-10 Years
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11-15 Years
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16-20 Years
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Over 20 Years
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Data Center Renovation 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 |
8.59(USD Billion) |
| Market Size 2023 |
9.58(USD Billion) |
| Market Size 2032 |
25.5(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
11.49% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2022 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Siemens, Microsoft, Schneider Electric, Dell Technologies, Johnson Controls, Legrand, Eaton, ABB, Honeywell, Emerson Electric, Hewlett Packard Enterprise, IBM, Google, Vertiv, Cisco Systems |
| Segments Covered |
Renovation Type, Renovation Goal, Infrastructure Component, Data Center Age, Regional |
| Key Market Opportunities |
Upgrading aging infrastructure Increasing demand for energy-efficient solutions Growing need for scalability and flexibility Expanding cloud and colocation services Integration of advanced technologies |
| Key Market Dynamics |
Rapid technological advancements Growing demand for energy efficiency Surge in cloud computing adoption Increasing need for data storage and management Sustainable practices and government regulations |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Data Center Renovation Market is projected to grow at a CAGR of 11.49% from 2024 to 2032.
North America is expected to dominate the Data Center Renovation Market, followed by Europe and Asia-Pacific.
Data center renovations are primarily driven by the need to upgrade existing facilities to meet the demands of new technologies, such as cloud computing, big data, and artificial intelligence.
Key players in the Data Center Renovation Market include Schneider Electric, Johnson Controls, Vertiv, IBM, and Dell Technologies.
The growing adoption of cloud and edge computing, increasing demand for data storage and processing, and the need to improve energy efficiency are key factors driving the growth of the Data Center Renovation Market.
Challenges faced by the Data Center Renovation Market include the high cost of renovations, the need for specialized expertise, and the potential disruption to ongoing operations.
Opportunities for growth in the Data Center Renovation Market include the increasing demand for sustainable and energy-efficient data centers, the growing adoption of modular data center designs, and the expansion of the market to emerging economies.
Key trends in the Data Center Renovation Market include the adoption of prefabricated modular data centers, the use of artificial intelligence and machine learning for data center management, and the integration of renewable energy sources.
