Data Center Server Market Analysis, Overview, Growth, Demand and Forecast To 2025
22nd November 2018 - The Data Center Server market is expected to witness high growth owing to the growth in the telecommunication industry. The telecom market is expected to fuel by increasing demand of consumer internet usage and by growing demand of business mobility solutions. The emerging market of telecommunication industry is expected to show highest growth rate in the next seven years due to the increasing domestic investments, high economic development, and increasing foreign investments.
Data center server market is also expected to see growth owing to the growth of Enterprise resource planning applications in the industries. The ERP is projected to show growth of more than 5% CAGR over the forecasted period due to the increasing organizations dependency on business processes integration. Today, globally every industry finds ERP as a solution to reduce cost, increase operational efficiency, customer satisfaction, increase productivity and increase revenues. The data center server is basically a facility primarily used to house computer systems and associated components. The market has seen boom after the introduction of dot-com services in the period of 1997-2000 and after the introduction of cloud computing. They generally include redundant data communications connections, backup power supplies, security devices, and environmental controls (fire suppression, air conditioning). With the adoption of client-server model, the market of data center server has become crucial for many industries such as IT, Telecommunication, Defense, Manufacturing, and Automobile.
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The global data center facilities support in consolidating the large data centers to a centralized location, thus, purveying the computing resources from that single location. This propels the data center server market to have better performance capability, high computing density and less physical space compared to earlier rack systems. Data center servers have facilitated organization to have better power consumption, thus driving s demand globally. Today growing demand of cloud computing has also led the businesses and government organizations to upgrade the data centers to a higher degree so that transition of information, and business process do not take much resources. For an effective functioning of data center servers, a balanced investment is required in stretching up the facility with housed equipment.
Key drivers that are expected to propel the market are end user adoption due to the lower operational cost, lower power consumption cost, and higher business productivity from the existing infrastructure facilities. The new technologically advanced data center, referred as “lights-out” is also projected to fuel the market growth in the forecasted period. It is typically an ideal data center for eliminating the requirement for direct access by employees, as its operations can be conducted without staff and lighting. They are majorly accessed from a remote system through the automation program. This kind of data center servers reduces lot of energy, staffing costs, and threat of malicious attacks upon the infrastructure.
The market is segmented by data center type into Tier 1, Tier 2, Tier 3 and Tier 4. Tier 1 level data centers requires single non-redundant distribution path serving the IT equipment, Non-redundant capacity components, and basic site infrastructure with expected availability of 99.67%. Tier 2 level has to meet every requirement of Tier 1 and redundant site infrastructure capacity components with expected availability of 99.74%. Tier 3 level has to meet every requirement of tier 2 and concurrently maintainable site infrastructure with expected availability of 99.98%. Tier 4 level has to meet every requirement of tier 3 and fault-tolerant site infrastructure with electrical power storage with expected availability of 99.995%. The market is segmentation by end user type into small size, medium size and large size organization. The market is segmented by industry vertical into IT & Telecom, BFSI, Healthcare, Public sector, Energy & Power, and Manufacturing.
The market is segmented largely by region into North America, Latin America, Asia Pacific, Europe, and Middle East. The North American and the European regions accounts for more than half of the market share globally largely by the US. This is mainly due to presence of companies that are dedicated in large data center servers. The Asia Pacific region is expected to witness fastest growth due to the increasing investments and growth in industries such as Automotive, Finance, Infrastructure, Healthcare, IT, and Cloud Data Service. Particularly countries such as India, China, Japan, and Singapore accounts for major market share of more than one third mainly because of increasing Globalization and increasing economic developments. Organizations working in these countries have high demand of data center servers as compared to other countries in APAC.
Middle East & African is a high potential market as people have very high disposable income but due to lack of awareness about cloud services and data centers, they tend to use conventional services of data management for their business processes. In the forecasted period, it is expected that the market of MEA show a substantial increase in the demand primarily due to the increasing investments by foreign companies. The key market players in the market are Cisco Systems (U.S.), Hewlett-Packard (U.S.), Lenovo Group Limited (China), Dell (U.S.), Fujitsu (Japan), Hitachi (Japan), and Huawei (China). These companies cater services to companies such as Alibaba, Facebook, Amazon, Google, Microsoft, Tencent, and Baidu.
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