Data Center Equipment Market Innovation and Current Business Trends by 2024
Data Center Equipment Market size will have significant growth prospects owing to the rising demand for huge data storage capabilities, high security, and better operational efficiency. Growing applications of these devices in banking, healthcare, telecommunication, manufacturing, and retail sectors are likely to fuel the industry growth.
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Increasing virtual servers’ use by the enterprises and individuals is a substantial factor driving the industry growth. Virtual servers can resolve inadequacy in power utilization issues, thus boosting the industry growth. Many business organizations are dependent on these devices owing to their reduced operational cost and increased productivity benefits. Growing adoption of big data and cloud services for business and private applications will support the industry growth over the forecast timeline. Further, the growing concern for safe information storage and backup is augmenting the demand for the smart devices.
Improvements in current photovoltaic solar panels, as well as the introduction of advanced photovoltaic technologies, are anticipated to improve the device’s frequency in future. In addition, the provision of government incentives for renewable energy generation will increase the acceptance of green data centers.
The adoption of modern technologies will make these information centers more virtual, greener, and converged with the cloud. Such changes will help the end users in minimizing the operational cost, lowering the physical space and capital requirement, and thereby driving the growth of data center equipment market during the forecast period. Moreover, the introduction of software-defined data centers will provide significant growth opportunities to the market in the coming years.
However, high power consumption along with cooling and efficient power infrastructure need will restrain the data center equipment market growth. The lack of skilled workers will also hamper the data center equipment market growth.
Government, retail, manufacturing, healthcare, banking, telecommunications, and BFSI are the application areas for the data center equipment market. The telecommunication is expected to lead the application segment owing to the growing internet-enabled service applications. Telecommunication sector has a huge requirement of smart devices, which can handle the massive amount of information with integrity, high standards, and safety in IT fields as it produces huge information in the form of large customer database, call records, and sales.
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Currently, many companies are providing advanced products according to the consumer needs. Some of the key players in the data center equipment include Digi International, Emulex Corp., Cisco Systems, Inc., Brocade Communication Systems, Inc., F5 Networks, Schneider Electric, NEC Corp., Meru Networks, Hewlett-Packard, and Alcatel-Lucent. These key players are bringing new products with advanced technologies and are engaged in acquisitions, alliances, and industry consolidations to remain competitive in the industry. In January 2017, Hewlett-Packard launched a range of products in collaboration with Schneider Electric.
The U.S. is anticipated to hold the largest share in the data center equipment market. This growth is driven by a wide adoption of cloud services and development in the telecommunication sector, server virtualization, and technological advancements. Moreover, Asia Pacific has the highest internet subscriber base and thus will witness a rapid growth of internet-based services. This trend will help this region to emerge as the potential market and have growth prospects over the forecast period.
The company’s new products include power distribution, security, IT, and cooling equipment. Additionally, in February 2015, Alcatel-Lucent launched 400G IP router interface, which would allow the information transmission between the current Alcatel-Lucent IP routers at a speed of 400 gigabits-per-second. This launch would provide operators a bigger advantage to push the limits of their IP network capabilities.
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