The increasing demand for cloud-based storage, data backup, and collocation service users have largely contributed to the growing revenue share of the global data center equipment market. Some of the most important data storage equipment include solid state drives, CDs and DVDs, hard disks, and flash memories. The growing gains in the data center equipment market through application delivery controllers and other WAN optimization appliances are also predicted to boost the market slightly more than current market figures by the end of 2020. As per a recent market report, the market for data center equipment was valued at US$32.15 billion in 2013 and is however, expected to rise in terms of revenue over the next five years.

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What Drives the Global Data Center Equipment Market?

The ease to accommodate the data center servers, networking components, and other systems in a centralized repository helps to store and manage mission critical data of several business operations. Driven by virtualization and surging amounts of data, the need for larger data storage capacities, high data security, and better efficiency is rising and driving the market for data center equipment, globally.

Also, rising concerns towards the data backup and secure data storage have further augmented the demand for advanced data center equipment across different end-users. Moreover, many organizations also demand the need to meet government compliances and environmental regulations that is further accomplished by specific data center equipment.

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Saving Energy through Green Data Centers: Green is Inevitable

Green IT is increasingly becoming popular amongst the IT sector - driven by rising electricity costs, corporate social responsibilities, and green legislation moves. The adoption of new and greener technologies is expected to drive the data center equipment market with cloud and more greener and virtual concepts. It will help encourage the efficient use of energy, support visualization, optimize equipment layouts, and improve data center availability across different industry platforms.

In recent years, the market has also experienced the introduction of new photovoltaic technologies and several up-gradation and improvements in existing photovoltaic (PV) solar panels. Such changes are expected to improve the efficiency of the data center equipment market and add to the growing revenues of this market.

The data center market is also likely to witness provision of incentives by governments for renewable energy generation that is further expected to increase the adoption of green data centers.

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Defining the Data Center by Market Segmentation and Size

The market for data center has many different types of equipment that are used to serve the purpose of data centers. These include power distribution systems, servers, and network equipment among many others.

Growth in Various Segments in Ascending Order

The data center equipment market dominated the global data center equipment with maximum market share in 2013

The segment was immediately followed by high growth in the networking equipment market

Also, during the same year, 2013, the telecommunications segment accounted for 24.9% revenue share owing to huge customer database, massive amount of data recorded in the form of call logs, and sales among others

Growth in the global data center equipment market is booming due to high demand for servers and need for centralized data storage for efficient and smoother operations.

In Conclusion

Data centers have become the backbone of businesses across the globe. In the forthcoming years, sheer growth in data and digital intelligent devices will majorly contribute to the market for data center equipment. Several emerging technologies will drive this market to be used by various organizations belonging to different industry verticals such as telecommunications, banking and finance services and insurance (BFSI), retail enterprises, government, manufacturing and more.

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