A data center is a dedicated facility for telecommunications and data storage. It is a physical or virtual infrastructure used by distinct organizations to put up their networking components, server, and systems. Hardware components used in data centers include firewalls, cable connections, switches, routers, and modems. A data center’s construction process includes design, architecture, mechanical & electrical systems, and security systems.
The global rise in adoption of digitization due to the rising need for their own data centers is primarily driving the growth of the data center equipment market. Further, factors such as the rise in adoption of cloud computing services, increasing demand for a virtual machine for remote operation, and rising focus of quantum computing are propelling the demand for data centers. Thus, the rising need for data centers continues to increase the demand for data centers equipment market growth. In addition, the growing use of several operating systems running on virtual machines ensuing in the allocation of hardware resources is expected to fuel the data center equipment market growth.
In addition to this, benefits associated with the adoption of virtual machines such as reduced cost, increase hardware utilization efficiency, improve business continuity, improve responsiveness, easy availability, and increase productivity are projected to enhance the market growth. Moreover, growing adoption of big data technology and digitalization of information is driving the global market. Furthermore, rapid advancements in cloud technologies to develop an effective network for the next-generation data center are expected to offer new growth opportunities to the data center equipment market growth in the forecast period. However, the limited availability of a skilled workforce to operate data center equipment is expected to hinder the market growth.
The global data center equipment market is divided based on product, end-use, and region. Based on the product, the global market is split into the power distribution system, storage devices, servers, networking equipment, and others. The end-user segment consists of telecommunications, banking, financial services & insurance (BFSI), healthcare & pharmaceuticals, retail, government, manufacturing, business enterprises, and others.
Geographically, North America is anticipated to dominate the global data center equipment market during the forecast period. Factors such as the presence of a large number of data centers and rapidly growing IT industries are driving the growth of the market in this region. Further, the increasing need for data storage equipment for the management of data generated by IT, banking, and telecom sectors is expected to drive the regional market. Asia Pacific is projected to hold the second position in the market and is anticipated to account for a significant share over the forecast period. This is attributed to the increasing need for data center projects in countries such as India & China is fostering the market growth.
Juniper Networks, Avaya Inc., Huawei Technologies Co. Ltd, Fujitsu Corporation, IBM Corporation, EMC Corporation, Dell Inc., Cisco Systems Inc., QNAP Systems Inc., Oracle Corporation, and Hewlett Packard Co are some of the major players that are operating in the global data center equipment market.
In March 2021, Huawei Technologies Co. Ltd has launched next-generation data center and power supply solutions and offer smart modular data center solution for small and edge computing scenarios.