The efficient data center market is poised to reach $25 billion by 2024 according to a new research report by Global Market Insights, Inc. The report states that the rapid growth in the number of SMEs globally has led to an exponential rise in the amount of data generated. The mounting pressure for efficient management for the increasing amount of data will contribute to the efficient data center market growth. Several government organizations are encouraging the growth of new businesses.
According to the report, the government push is largely concentrated in Asia Pacific countries through the launch of “Made in China 2025” and “Make in India,” which are providing tax incentives, financial aid and technical support to local SMEs, fueling the industrial growth. The growing data center complexities with the rising amount of data generated has stressed the requirement for a reliable and scalable data center infrastructure. Driven by surging cloud applications, the fast-growing data center traffic will support the market growth.
The growing focus on energy efficiency has made the data center industry a frontrunner in implementing energy-efficient solutions. The energy consumption of data centers has been rapidly increasing with the advent of cloud computing services and is causing an increase in CO2 emissions. There is a high focus on the need for lowering the Power Usage Effectiveness (PUE) amongst companies, primarily amongst major players such as Allied Controls, Facebook and Google. Stringent government regulations pertaining to energy-efficiency in data centers will contribute to the green data center market size. Energy efficient initiatives can help a company regain the power and cooling capacity and recapture resilience while reducing the energy costs.
Cyber security threats are a key factor restraining efficient data center market growth. Financial organizations and businesses store critical and confidential data in data centers. Stringent government regulations such as European General Data Protection Regulation (GDPR) are imposing rules pertaining to the safety of information in data centers. The providers must comply with the strict standards and regulations operating in the market. Additionally, the technologies cost significantly more than the traditional systems.
The Global Market Insights report says the networking solutions in the efficient data center market will grow substantially with a CAGR of around 27%, due to the rising demand for these solutions to minimize power consumption. The conventional network infrastructure ensures interconnection of physical and network-based equipment and devices within a facility that consumes more than 65% of the overall power. Moreover, there is a growing trend of virtualized networking environments. Network virtualization is being increasingly implemented by enterprises to reduce costs, improve efficiency and enhance agility.
Around the World
The report says the efficient data center market in Asia Pacific will experience a strong growth of more than 30% from 2018 to 2024 owing to the widespread adoption of cloud and IoT technologies in countries such as China and India. The rapid growth in the number of startups in India, coupled with the favorable government initiatives such as “Make in India,” will support the green data center market growth in the country. The booming industrial sector in Japan is demanding high performance equipment for mounting volumes of data from connected factories.
Players operating in the efficient data center market include Dell Inc., Huawei Technologies Co., Ltd., HCL Technologies Limited, IBM Corporation, Microsoft Corporation, Fujitsu Ltd., Schneider Electric SE, and Hewlett-Packard Enterprise Company. Companies are striving to launch new data centers to strengthen their market presence. In May 2016, Microsoft stated that they will be obtaining a LEED Gold certification for all its structures to lower their PUE. Vendors are also increasingly incorporating latest advanced technologies in their data centers to reduce the hazardous emissions and power consumption. Increasing competition among companies to offer advanced solutions will propel the market share.