According to the Market Statsville Group (MSG), the global data center and network hardware third-party maintenance market size is expected to grow from USD 1851.5 million in 2022 to USD 5893.5 million by 2033, at a CAGR of 11.1% from 2023 to 2033. Data centers have become an essential component of modern computing infrastructures across organizations. They are also now witnessed as a key business parameter, not as external facilities, for the storage of data and business operation models, which has created lucrative demand for the data center and third-party services. Besides, the decade has observed a drastic rise in computer capacities, increasingly advanced applications, and an explosion in the amount of data being processed and generated in enterprises. The rising trend of outsourcing data centers and network maintenance and management due to the financial & operational benefits and other benefits will boost the market over the forecast period. On the other hand, Changes in the operational process in the data center, stringent government regulation and security requirements will hamper the market growth over the forecast period. Moreover, the growing number of smart data centers by key players will create huge opportunities for the upcoming period.

Definition of the Global Data Center and Network Hardware Third-Party Maintenance Market

Data center and network hardware third-party maintenance is storage, and hardware support for server and network equipment and services which is an alternative to traditional OEM (Original Equipment Manufacturer) warranty and post-warranty support. For instance, A customer would enlist a third-party maintenance provider to support its Dell EMC, IBM, HPE or Cisco solutions in its data center in place of original equipment manufacturer service.

The adoption of cloud technology continues to increase worldwide as businesses move from on-premises technology to achieve business efficiencies, on-demand service, network elasticity and expanded network access. Besides, most organizations are shifting their focus from managing their own infrastructures toward leveraging a service provider data center for shared and dedicated cloud offerings. Thus, cloud deployment has opened the door for fast-growing organizations of all sizes, making data center and network hardware third-party maintenance available for big and small companies.

COVID-19 Impact on the Global Data Center and Network Hardware Third-Party Maintenance Market

The COVID-19 pandemic is expected to create a recession in global economies, as most of the economies will witness negative growth in 2020. Manufacturing sector to the aviation and hospitality sector, everything has been impacted by this pandemic disease. However, some industry is anticipated to gain traction during this pandemic, among which the data center industry will gain a slight positive growth in 2020 and subsequent years.

Even post COVID-19, businesses are expected to understand the need for the deployment of managed and maintenance services to continue providing sustenance to their IT teams, focus on business continuity, processes and tools to keep their employees safe and productive. This comprises the development of next-generation data centers, including the gradual shift to edge computing, empowering AI to innovate and automate processes, and integrating SDDC (Software-Defined Data Center) to access and manage tasks as well as maintain third party services. Amid the crisis of COVID-19, global corporate giants and investors are focused on the rising potential market for digital infrastructure. Therefore, the data center and network third-party hardware maintenance market is expected to be a critical catalyst to the growth of emerging technologies.

Global Data Center and Network Hardware Third-Party Maintenance Market Dynamics

Drivers: Increasing Proliferation of Cloud-based Solutions

The adaption of the cloud-based solution has been growing rapidly in businesses and more computing needs are driven by the advent of IoT and Big Data. According to research published by 451 research institutions and even Cisco estimated that roughly 90% of the enterprises are using cloud technology in their business functioning during 2019. By 2021, around 94% of all computing will be performed in the cloud data centre. This accelerating demand for cloud technology on the back of the digital age has insisted enterprises replace to deploy cloud-based solutions by replacing traditional hardware systems of the data center management process. With the growing convergence of cloud infrastructure, companies often revealed a substantial prospect for leveraging data centers and includes the hardware itself for managing the data center functions. Thus, cloud-based solutions act as a key value-added function for several businesses both large and small- and mid-sized enterprises (SMEs). In addition, the cloud-based solution often connects and allows improved storage between the process, things, and people; therefore, it could play a crucial role in generating high visibility in data centers. Besides, most organizations are shifting their focus from managing their own infrastructures toward leveraging a service provider data center for shared and dedicated cloud offerings. This is further expected to result in the demand for the data center and network third-party hardware maintenance market.

Restraints: Changes in Operational Processes and Lack of Awareness Coupled with the Stringent Government Regulation

Changes in the operational process in the data center, stringent government regulation and security requirements, and lack of awareness about services required for maintaining and supporting these data center technologies are likely to inhibit the market growth globally. Among them, the constant changes in operational processes across data centers, which have meant that updating and reorganizing the operational processes apropos of hardware and software has become imperative. Changes in operational processes have imposed the total up-gradation of the management process in organizations. This further involves challenges such as significant implementation time, which, in turn, resulting in project delays in contradiction of the backdrop of process re-engineering. This is expected to hamper the market growth. In addition, the operational errors in data centers further raise the pressure on end-users and may create a need for additional efforts, including sudden cost expenditure, infrastructure creation, and more, thereby limiting the market growth over the forecast years.

Opportunities: Growing Number of Smart Data Centers by Key Players

Numerous small private businesses characterize the data market as well as IT giants, including Cisco, Huawei, and IBM Corporation. The market players operating in the market have steadily adopted groundbreaking marketing strategies to gain a competitive advantage. Companies often regularly involved themselves in endorsing spa services not merely amongst the higher income groups while also in middle-income groups through adjusting their pricing policies. These help market players to enhance the business operations and support services to create a better brand image.

Moreover, companies are taking innovative marketing & positioning strategies that are likely to increase in the future in order to create diversity and attract consumers. For instance, Huawei has introduced its initial data centre switch assembled for the Artificial Intelligence (AI) era - “Cloud Engine 16800”. The company defines three attributes of data centre switches in the AI era, embedded AI chip, 48-port 400GE line card per slot and the capability to evolve to the autonomous driving network and innovative incorporates AI technologies into data centre switches. These developments of smart data centres will require more skilled staff; however, these facilities are now focused to provide these services to third-party providers, thereby driving the market growth. Moreover, the growing integration of advanced and innovative technology in the data centre by the key players coupled with rising partnerships between market players will further spur the growth outlook for the data centre and network third-party hardware maintenance market during the forecast period.

Scope of the Global Data Center and Network Hardware Third-Party Maintenance Market

The study categorizes the data center and network hardware third-party maintenance market based on type and application area at the regional and global levels.

By Type Outlook (Sales, USD Billion, 2019-2033)

• BREAK-FIX
• IMAC
• System Integration

By Application Outlook (Sales, USD Billion, 2019-2033)

• SMEs
• Large Enterprises

By Region Outlook (Sales, USD Billion, 2019-2033)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • The Netherlands
  • Norway
  • Czech Republic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA

SMEs segment accounts for the largest market share by application

Based on the application, the market is split into smes and large enterprises. The small and medium enterprises (SMEs) segment is expected to dominate the market share in 2022 in the global data center and network hardware third-party maintenance market. the cloud-based solutions is particularly valuable to small and medium-size businesses (SMB's) because it provides access to full-function applications at a reasonable price without a substantial upfront expenditure for hardware and software. Using the right cloud provider, a company can rapidly scale their business productivity software as their business grows or a new company is added.

North America is projected to account for the highest market share by Region

Based on the regions, the global freight procurement technology solutions market has been segmented across Europe, North America, the Middle East & Africa, Asia-Pacific and South America. North America is projected to account the highest market share in 2022. North America has long led the world in technological advancement. A close partnership between government, academia, and industry is the vibrant engine that has powered an innovation ecosystem that has secured America's leadership role in setting rules and standards around the globe. North America is growing number of IT innovation companies which has led to stringent competition for surviving in the market.

Key Market Players in the Global Data Center and Network Hardware Third-Party Maintenance Market

The data center and network hardware third-party maintenance market is extremely cutthroat, and significant competitors in the sector are using strategies including product launches, partnerships, acquisitions, collaboration, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.

Major key players in the global data center and network hardware third-party maintenance market are:

• Park Place Technologies
• Cxtec
• Service Express
• DataSpan
• AIMS DATA CENTRE
• Equinix
• CDS (Computer Data Source)
• EmconIT
• OSI Global IT
• Essintial Enterprise Solutions

Recent Development

• In April 2021, Park Place Technologies launched their operations center and new office in Westborough, Mass. The new location, intended by foremost design and architecture firm Vocon, will enhance the company’s ability to provide its data center hardware maintenance and complete suite of managed services to clients.
• In February 2021, Service Express completed the acquisition with Blue Chip, the U.K.’s leading managed service and third-party maintenance (TPM) provider, to expand its global platform. The acquisition will enable Service Express to expand its geographical presence and even strengthen the market position.

Key Issues Addressed

• What is the market size by various segmentation of the data center and network hardware third-party maintenance by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the data center and network hardware third-party maintenance market?
• What are the key opportunities and trends for manufacturers involved in the data center and network hardware third-party maintenance supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of data center and network hardware third-party maintenance in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.