Cloud, Big Data Driving Growth of Data Center Equipment Market
July 1, 2015 | Transparency Market ResearchEstimated reading time: 2 minutes
Transparency Market Research (TMR) has published a new market study on the global data center equipment market for the period from 2014 to 2020. The report, titled “Data Center Equipment Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 - 2020”, forecasts the market for data center equipment to reach US$72.07 billion by 2020. TMR analysts state that the global data center equipment market was worth US$32.15 billion in 2013 and will display a 12.9% CAGR between 2014 and 2020.
Digitalization of data across various industry sectors has created unparalleled demand for data storage and data backup facilities. This, along with factors such as the need for security of data and improved efficiency, is driving demand for data centers. Investing in the IT infrastructure of an organization is a key focus of business executives across several industries such as BFSI, healthcare, telecommunications, and pharmaceuticals, among others. The data center sector has proven to be resilient and dynamic, with growing demand for digitalization of data, mushrooming social media, and innovations in cloud computing.
Increased use of cloud services, Big Data, and virtualization in the overall network ecosystem is driving growth of the data center equipment market. Additionally, increasing need for accessing and storing large volume of data is boosting the demand for data center equipment. However, due to the high energy requirement of data center equipment, effective power and cooling infrastructural facility is needed to support the equipment. As such, meeting governmental compliance and environmental orders regarding data center cooling systems remains the biggest challenge for most organizations. Data center equipment is widely used across several end-use industries, due to proliferation of digital data and for further effective data management to extract strategic information. Some of the end-use sectors of data equipment include telecommunications, manufacturing, government, healthcare, retail, and business enterprises, among others.
Of all the industry sectors, the telecommunications sector had the highest revenue contribution in the data center equipment market in 2013. This is mainly due to unparalleled online presence and consequent growth in internet-enabled services. Such services have led to the exchange of large amounts of data over the web, which has led to demand for tools that can deliver data integrity, safety, and high standards at data centers. North America is expected to be the largest market for data center equipment in the coming future. This is due to technological system advancements such as server virtualization, dependence on critical programs for business procedures, and e-discovery, combined with an exponential increase in data generation. Europe is also experiencing similar technology advancements, leading to North America and Europe collectively accounting for 49.3% of the global revenue in the global data center equipment market in 2013. Asia Pacific and Rest of the World (RoW) have the largest internet subscriber base and are witnessing fast expansion of internet-based services. For such reasons, the regions will emerge as high-potential markets for data center equipment.
Suggested Items
IDTechEx Report on Quantum Technology: Nano-scale Physics for Massive Market Impact
04/30/2024 | PRNewswireThe quantum technology market leverages nano-scale physics to create revolutionary new devices for computing, sensing, and communications. Across the industry, quantum technology offers a paradigm shift in performance compared with incumbent solutions.
Guerrilla RF Completes Strategic Acquisition of GaN Device Portfolio from Gallium Semiconductor
04/29/2024 | BUSINESS WIREGuerrilla RF, Inc. has finalized the acquisition of Gallium Semiconductor's entire portfolio of GaN power amplifiers and front-end modules. Effective April 26th, 2024, GUER acquired all previously released components as well as new cores under development at Gallium Semiconductor.
Amphenol Reports Q1 2024 Results, Announces New Stock Repurchase Program
04/26/2024 | BUSINESS WIREAmphenol Corporation reported first quarter 2024 results. In addition, the Company is announcing a new three-year, $2 billion stock repurchase program.
Chinese Smartphone Market Maintains its Recovery Momentum at 6.5% Growth in 1Q24,
04/26/2024 | IDCAccording to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, China smartphone shipments grew 6.5% year over year (YoY) to 69.3 million units in 1Q24.
Nanotechnology Market to Surpass $53.51 Billion by 2031
04/25/2024 | PRNewswireSkyQuest projects that the nanotechnology market will attain a value of USD 53.51 billion by 2031, with a CAGR of 36.4% over the forecast period (2024-2031).