The Data Center Equipment Market size was USD 50.35 Billion in 2022. Covid-19's impacts have been unprecedented and staggering on a global scale, with the pandemic leading to negative demand shocks for the data center equipment market across all domains and regions. Between 2023 and 2031, the market is projected to grow at a CAGR of 12.4%, from USD 51.82 billion in 2023 to USD 120.36 billion in 2031. The sudden rise in CAGR is attributed to this market growth returning to the pre-pandemic level once the pandemic is over.
The data center equipment market refers to the industry that produces and supplies various hardware components and systems that are used in data centers. Data centers are facilities that house servers, storage devices, networking equipment, and other critical infrastructure used to store, process, manage and distribute large amounts of digital data. The data center equipment market includes a wide range of products such as servers, storage devices, routers, switches, firewalls, cooling systems, and other supporting hardware and software components.
The scope of the data centre equipment market is constantly expanding due to the growing demand for digital storage and computing capabilities. With the increasing adoption of cloud computing, the demand for data center equipment is expected to continue to grow significantly in the future. The market also includes products and solutions that cater to specific industries, such as healthcare, finance, government, and education. Moreover, the market is driven by factors such as the need for high-speed and low-latency data processing is driving the market growth.
Increasing adoption of virtualization technologies, the growing demand for energy-efficient data center solutions, and the need for scalable and flexible infrastructure to support digital transformation initiatives aids the market growth. The data center equipment market is highly competitive, with major players such as Dell Technologies, Hewlett Packard Enterprise (HPE), IBM Corporation, Cisco Systems, Inc., and Huawei Technologies.
Scope of Data Center Equipment Market Report:
A recent market research report added to repository of Intellectual Market Insights Research is an in-depth analysis of Global Data Center Equipment Market. On the basis of historic growth analysis and current scenario of Data Center Equipment market place, the report intends to offer actionable insights on global market growth projections. Authenticated data presented in report is based on findings of extensive primary and secondary research. Insights drawn from data serve as excellent tools that facilitate deeper understanding of multiple aspects of global Data Center Equipment market. This further helps users with their developmental strategy.
This report examines all the key factors influencing growth of global Data Center Equipment market, including demand-supply scenario, pricing structure, profit margins, production and value chain analysis. Regional assessment of global Data Center Equipment market unlocks a plethora of untapped opportunities in regional and domestic market places. Detailed company profiling enables users to evaluate company shares analysis, emerging product lines, pricing strategies, innovation possibilities and much more.
The report covers the all the aspects of industry with dedicated study of key players that includes market leaders, followers and new entrants by region. PORTER, SVOR, PESTEL analysis with the potential impact of micro-economic factors by region on the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give clear futuristic view of the industry to the decision makers.
Data Center Equipment Market Drivers:
Increasing Demand for Edge Computing with Surge in the Digitization is Driving the Market Growth
Edge computing is a distributed computing model that brings data processing and storage closer to the devices and sensors that generate the data, rather than relying on centralized data centers. This allows for faster data processing and reduced network latency, which is essential for applications such as real-time analytics, autonomous vehicles, and smart cities. To support edge computing, data center equipment manufacturers are developing specialized solutions that can be deployed in remote locations and harsh environments.
This includes solutions such as micro data centers, ruggedized servers, and edge-specific networking equipment. The increasing demand for edge computing is being driven by a variety of factors, including the growing number of connected devices and sensors, the need for real-time processing and analytics, and the limitations of traditional cloud computing models.
Rapid Adoption of the Internet of Things (IoT) and Connected Devices is Driving the Market Growth
The internet of things (IoT) refers to the network of connected devices and sensors that are used to collect and transmit data. The growth of IoT is driving the demand for data center equipment, as this data needs to be stored, processed, and analysed. IoT requires specialized data center equipment that can handle the large volumes of data generated by connected devices and sensors. This includes solutions such as high-density storage systems, low-power processors, and edge-specific networking equipment.
The growth of IoT is being driven by a variety of factors, including the increasing availability of low-cost sensors and devices, the growing need for real-time data processing and analytics, and the emergence of new business models and services that leverage IoT data. As the adoption of IoT continues to grow, the demand for data center equipment that can support these workloads is expected to increase.
Data Center Equipment Market Trends:
One Trend that is Shaping the Data Center Equipment Market is the Shift Towards Software-Defined Infrastructure
Software-defined infrastructure refers to the use of software to control and automate the provisioning and management of data center resources, such as compute, storage, and networking. This trend is being driven by the need for greater agility, flexibility, and efficiency in data center operations. Software-defined infrastructure allows data center operators to provision and manage resources more quickly and efficiently, and to respond to changing business needs and workload demands.
Software-defined infrastructure also enables the creation of more intelligent, self-managing data center environments that can optimize resource utilization and reduce operational costs. For example, software-defined storage solutions can automatically move data between different tiers of storage based on usage patterns, while software-defined networking solutions can dynamically adjust network bandwidth and routing to optimize performance.
Another driver of the shift towards software-defined infrastructure is the growing adoption of hybrid cloud models. Hybrid cloud refers to the use of both public cloud and private cloud resources to support different workloads and business needs. Software-defined infrastructure provides the flexibility and control needed to manage and optimize hybrid cloud environments.
Overall, the shift towards software-defined infrastructure is a key trend that is shaping the data center equipment market. As data center operators look for ways to improve agility, efficiency, and flexibility, the adoption of software-defined infrastructure is expected to continue to grow.
Data Center Equipment Market Restraining Factors:
One of the Key Restraint Facing the Data Center Equipment Market is the Increasing Cost of Energy and the Need to Reduce Energy Consumption
Data centers consume large amounts of energy to power and cool the equipment, and the cost of energy can be a significant expense for data centre operators. To address this challenge, data center operators are implementing energy-efficient technologies and practices, such as server virtualization, advanced cooling systems, and renewable energy sources. However, the adoption of these technologies and practices can require significant upfront investments, which can be a barrier for some organizations. In addition, the increasing demand for data center equipment and the growing complexity of data center environments can make it difficult to optimize energy usage and reduce costs. This can be especially challenging for older data center facilities that were not designed with energy efficiency in mind.
Overall, the need to reduce energy consumption and lower operating costs is a key restraint facing the data center equipment market. As energy costs continue to rise and environmental concerns become more pressing, data center operators will need to invest in energy-efficient solutions to remain competitive and sustainable.
The report will cover the qualitative and quantitative data on the global Data Center Equipment Market. The qualitative data includes latest trends, market players analysis, market drivers, market opportunity, and many others. Also, the report quantitative data includes market size for every region, country and segments according to your requirements. We can also provide customize report in every industry vertical.
Report Scope and Segmentations:
Estimated Forecast Year
CAGR of 12.4% from 2023 to 2031
By Application, By Product, By Region
- Large scale enterprise
- Medium scale enterprise
- Power Distribution Systems
- Storage Devices
- North America (U.S., Canada, Mexico)
- Europe (Germany, France, UK, Italy, Spain, Russia, Rest of Europe)
- Asia-Pacific (China, India, Japan, ASEAN, Rest of Asia-Pacific)
- LAMEA (Latin America, Middle East, Africa)
Key Players Strategies in the Market:
- In February 2021, Google announced plans to invest USD 7 billion in expanding its data centers and office spaces across the US in 2021. The expansion is expected to create 10,000 new full-time jobs in the country.
- In March 2021, Intel announced the launch of its latest 3rd Gen Intel Xeon Scalable processors, which Intel announces new data center processors are designed to deliver improved performance, efficiency, and security for data center workloads.
- In January 2021, Huawei announced plans to invest USD1 billion in its cloud and data center business in Europe over the next five years. The investment is aimed at expanding the company's cloud services and building new data centers in the region.
- In March 2021, Equinix announced the acquisition of three data center facilities in Mexico from Axtel, a Mexican telecommunications company. The acquisition is aimed at expanding Equinix's presence in the Latin American market.
- In April 2021, IBM announced the acquisition of Turbo-nomic, a provider of application resource management and cloud automation software. The acquisition is aimed at strengthening IBM's cloud management and automation capabilities.
Data Center Equipment Market Players Analysis:
Here is a list of some of the companies profiled in the Data Center Equipment Market:
- Cisco Systems Inc.
- Dell Technologies Inc.
- Hewlett Packard Enterprise Development LP
- Huawei Technologies Co. Ltd.
- IBM Corporation
- Intel Corporation
- Lenovo Group Limited
- NEC Corporation
- NetApp Inc.
- Schneider Electric SE
- Siemens AG
- Vertiv Group Corp.
- Broadcom Inc.
- Fujitsu Limited
- Hitachi Ltd.
Data Center Equipment Market Players & Competitor Analysis:
The report covers the key players of the industry including Company Profile, Product Specifications, Production Capacity/Sales, Revenue, Price and Gross Margin 2023-2031 & Sales with a thorough analysis of the market’s competitive landscape and detailed information on vendors and comprehensive details of factors that will challenge the growth of major market vendors.
Data Center Equipment Market Segmentation Analysis:
By application, the data center equipment market can be segmented into various categories, including large-scale enterprises and medium-scale enterprises. Here is a brief analysis of each of these segments:
Large-Scale Enterprises: Large-scale enterprises refer to businesses that have a significant amount of data and require high-performance computing power to manage their operations. These companies typically require data centers that are large in size and have complex networking equipment, storage systems, and servers. In terms of data center equipment, large-scale enterprises are some of the biggest consumers of servers, storage systems, networking equipment, and cooling systems. These companies are also likely to adopt advanced technologies such as artificial intelligence, machine learning, and cloud computing, which require specialized data center equipment to support their operations.
Medium-Scale Enterprises: Medium-scale enterprises are smaller than large-scale enterprises and typically have less data to manage. However, they still require reliable and efficient data center equipment to support their business operations. Medium-scale enterprises may have smaller data centers that require less equipment, but they still need to invest in servers, storage systems, networking equipment, and cooling systems to ensure the availability and security of their data. These companies may also adopt cloud computing and other advanced technologies to improve their operational efficiency and competitiveness.
The data center equipment market can also be segmented by product type, including:
Servers: Servers are a crucial component of data center equipment, as they provide computing power to run applications and manage data. The demand for servers is driven by the increasing need for high-performance computing to support data-intensive applications and workloads. Servers can also be customized to meet specific needs, such as high-speed data processing, storage capacity, and security.
Power Distribution Systems: Power distribution systems are responsible for distributing power to all the components of a data center. These systems include electrical switchgear, transformers, and uninterruptible power supply (UPS) units, which ensure uninterrupted power supply to the data center equipment. The demand for power distribution systems is driven by the need for reliable and efficient power supply to ensure the uninterrupted operation of the data center.
Storage Devices: Storage devices are used to store and manage data in a data center. These devices include hard disk drives (HDDs), solid-state drives (SSDs), and other types of storage devices. The demand for storage devices is driven by the increasing amount of data generated by businesses and the need for efficient and reliable storage solutions to manage this data.
Others: Other data center equipment includes networking equipment, cooling systems, and other infrastructure components that support the operation of the data center. The demand for these components is driven by the need to ensure the smooth operation of the data center and to improve its performance and efficiency.
Global Data Center Equipment Market Regional Analysis:
North America accounted for the highest xx% market share in terms of revenue in the Data Center Equipment market and is expected to expand at a CAGR of xx% during the forecast period. This growth can be attributed to the growing adoption of Data Center Equipment. The market in APAC is expected to witness significant growth and is expected to register a CAGR of xx% over upcoming years, because of the presence of key Data Center Equipment companies in economies such as Japan and China.
The objective of the report is to present comprehensive analysis of Global Data Center Equipment Market including all the stakeholders of the industry. The past and current status of the industry with forecasted market size and trends are presented in the report with the analysis of complicated data in simple language.
North America: North America is the largest regional market for data center equipment, with the US being the largest contributor to the market. The region has a strong presence of data center operators, cloud service providers, and technology companies, which is driving the demand for data center equipment. The region is also home to several major data center equipment manufacturers, such as Cisco, Dell Technologies, and Hewlett Packard Enterprise.
Europe: Europe is a significant market for data center equipment, with countries such as Germany, the UK, and France being major contributors to the market. The region has a well-established data center industry, with a focus on energy efficiency and sustainability. The adoption of cloud computing and digital transformation initiatives is driving the demand for data center equipment in the region.
Asia-Pacific: Asia-Pacific is a rapidly growing market for data center equipment, with countries such as China, Japan, and India being major contributors to the market. The region has a large population and a growing middle class, which is driving the demand for digital services and cloud computing. The region also has a strong focus on innovation, with a growing number of technology startups and digital transformation initiatives.
Middle East and Africa: The Middle East and Africa region is a growing market for data center equipment, with countries such as the UAE, Saudi Arabia, and South Africa being major contributors to the market. The region has a growing demand for digital services and cloud computing, driven by the increasing adoption of mobile devices and the growth of e-commerce.
Data Center Equipment Market Report is also available for below Regions and Country Please Ask for that
- Rest of Europe
- South Korea
- Rest Of APAC
- Rest of South America
Middle East and Africa
- Saudi Arabia
- South Africa
- Rest Of MEA
Points Covered in the Report:
The points that are discussed within the report are the major market players that are involved in the market such as market players, raw material suppliers, equipment suppliers, end users, traders, distributors and etc.
The complete profile of the companies is mentioned. And the capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and the technological developments that they are making are also included within the report. This report analysed 12 years data history and forecast.
The growth factors of the market are discussed in detail wherein the different end users of the market are explained in detail.
Data and information by market player, by region, by type, by application and etc., and custom research can be added according to specific requirements.
The report contains the SWOT analysis of the market. Finally, the report contains the conclusion part where the opinions of the industrial experts are included.
Key Industry Developments:
- Microsoft to Invest USD 110 Million in Data Center Project in Iowa - March 11, 2021 Microsoft announced plans to invest USD110 million in a new data center project in West Des Moines, Iowa. The project is expected to create hundreds of jobs and will support Microsoft's growing cloud computing business.
- Amazon Web Services Announces Availability of New Data Centers in the Middle East - July 5, 2021 Amazon Web Services (AWS) announced the availability of its new data centers in the Middle East, located in Bahrain. The new data centers are expected to help meet the growing demand for cloud services in the region.
- Equinix to Acquire 13 Data Centers in Canada from Bell Canada - June 1, 2021 Equinix announced that it has entered into an agreement to acquire 13 data center sites in Canada from Bell Canada for USD 750 million. The acquisition will expand Equinix's presence in Canada and strengthen its position as a global data center provider.
Key Reasons to Purchase:
To gain insightful analyses of the Data Center Equipment market and have comprehensive understanding of the global market and its commercial landscape.
Assess the production processes, major issues, and solutions to mitigate the development risk.
To understand the most affecting driving and restraining forces in the market and its impact in the global market.
Learn about the Data Center Equipment market strategies that are being adopted by leading respective organizations.
To understand the future outlook and prospects for the Data Center Equipment market. Besides the standard structure reports, we also provide custom research according to specific requirements.
Research Scope of Structured Cabling Market:
- Historic year: 2018- 2021
- Base year: 2022
- Forecast: 2023 to 2031
- Representation of Market revenue in USD Billion
Data Center Equipment Market Trends: Market key trends which include Increased Competition and Continuous Innovations Trends: