Data centers are virtual or physical infrastructure used by different business enterprises to accommodate their server, computing and networking components and systems. It is a centralized repository used to store and manage mission critical data of several business operations. The need for larger data storage capacities, better efficiency and high data security is driving the data center equipment market worldwide. In terms of revenue, the market for data center equipment was valued at USD 32.15 billion in 2013. Rising concerns towards secure data storage and data backup have further augmented the demand for advanced data center equipment. However, owing to the high power need of data center equipment, efficient power and cooling infrastructure is needed to support the equipment. For most organizations, meeting environmental regulations and government compliances remains the biggest challenge in data center cooling systems. This involves problems with the cooling of high density rack systems and uncertainty of the quantity and location of high density racks. Thus, high power consumption and cooling issues are some of the major challenges in the data center equipment market.
Introduction of new photovoltaic technologies and improvements in existing photovoltaic (PV) solar panels is expected to improve the efficiency offered by data center equipment in future. Additionally, provision of incentives by governments for renewable energy generation is expected to increase the adoption of green data centers. Hence, the adoption of new technologies is expected to make data centers more converged with cloud, more virtual and greener. Such changes are expected to offer end users of data centers with benefits such as low operational cost, and low capital and physical space requirement.
Different types of equipment used in the data center include servers, power distribution systems, and network equipment among others. In 2013, servers dominated the data center equipment market followed by networking equipments. High demand for servers is due to surge in demand across organizations which face need for centralized data storage for smooth and efficient operations. Different types of data center equipment are selected on the basis of particular requirement of end-users. Data center equipments are used by organizations across different industry verticals, such as banking and finance services and insurance (BFSI), telecommunications, manufacturing, retail, enterprises, and government among others. Global data center equipment market in 2013 was dominated by telecommunications segment, which accounted for 24.9% revenue share. Telecommunication sector generates massive amount of data in the form of call records, huge customer database, and sales among others. Hence, telecommunication industry needs efficient data center equipments in order to manage and process this tremendous amount of information.
Geographically, North America is expected to remain the largest market for data center equipments. Market growth in this region is driven by advancement in telecommunication sector and wide adoption of cloud services. As a result of which, the competitive landscape in the data center market is changing. Large and aggressive competitors are each bringing their own class of new products to address this market. Acquisitions, industry consolidations and new alliances among market players are expected to increase for companies to remain competitive in this market. Some of the major players in this market include Emulex Corp., Digi International Inc., Cisco System Inc., F5 Networks Inc., NEC Corp., Brocade Communication System Inc., Schneider Electric SA, Meru Networks, Alcatel-Lucent, and Hewlett Packard Co. among others.
Data center is a facility used to accommodate computing systems with its associated components such as storage systems and telecommunications. The increasing concern for data backup and data storage has created unprecedented demand for data center equipment. Some important data storage equipment include hard disks, solid state drives, flash memories, and CDs and DVDs. Growing demand for virtualization in networking environments, and cloud services for improved performance has created the unprecedented demand for data center equipment such as servers, networking equipment, power distribution systems, storage devices and others. With rising proliferation of cloud computing, business organizations are monitoring data centers to a higher degree in areas such as availability, security, adherence to standards, and environmental impact.
The report provides complete understanding of the driving factors, restraints, and prevailing trends behind the popularity of data center equipment. The report also provides better understanding of the market with the help of Porter’s five forces analysis and further highlights the competitive scenario across different levels of the value chain. Impact factors such as market attractiveness analysis have also been explained in the market overview section of the report, in order to give a thorough analysis of the overall competitive scenario in the global data center equipment market.
The research report on data center equipment market provides in-depth analysis of the market based on its major product segments, end-use industries, and geographies for the period from 2014 to 2020. It also presents estimates and forecast for all the market segments and explains the impact of various factors on these segments. The stakeholders for this study include manufacturers and providers of data center equipment.
Various product segments analyzed in this report include servers, storage devices, power distribution equipment, networking equipment and others. Others product segment includes cables and various telecommunication equipment. These product segments are the basic building blocks of data center equipment market. Increasing demand for information storage and data processing capabilities has led to rapid growth in sizes of data centers. The market revenue and forecast for each product segments has been provided for the period 2012 to 2020 in terms of USD billion, along with the CAGR for the forecast period 2014 to 2020. Different end-use industries studied in this report include BFSI, telecommunications, healthcare and pharmaceuticals, manufacturing, retail, government, business enterprises, others. This section provides market revenue and forecast of data center equipment in these end-use industries historically for 2012 and 2013 along with the forecast for the period 2014 to 2020.
Geographically, the data center equipment market is categorized into four regions, namely, North America, Europe, Asia Pacific, and Rest of the World (RoW). This section includes market revenue (2012 – 2020) and forecast (2014 – 2020) for product segments and end use industries for each regional market, in terms of USD billion. The study further offers recommendations and highlights of the market, which would be useful for the present and new market players to sustain and grow in the global human data center equipment market.
Apart from the above cross sectional analysis of the market, the report also provides competitive profiling of major players engaged in data center equipment manufacturing, their market positioning, business strategies, and various recent developments. Some of the major players profiled in the report include F5 Networks Inc., Emulex Corporation, Digi International Inc., NEC Corporation, Brocade, Schneider Electric SA, Meru Networks, Cisco Systems Inc., Alcatel Lucent, Hewlett Packard Co. and others. In all, the report provides detailed analysis of the global data center equipment market along with the market forecast, in terms of revenue (USD Billion) for all the segments during the forecast period from 2014 to 2020. The global data center equipment market is segmented as follows:
Global Data Center Equipment Market, by Product
- Power Distribution Systems
- Storage Devices
Global Data Center Equipment Market, by Application
- Banking, Financial Services and Insurance (BFSI)
- Business Enterprises
- Others (R&D, educational institutions, media and entertainment)
Global Data Center Equipment Market, by Region
- North America
- Asia Pacific
- Rest of the World (RoW)