Data Center Server Market Global Analysis & Forecast Report 2025
23rd
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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