Product Code: 65314
The global data center infrastructure management market was valued at USD 1,707 million in 2019, and it is expected to reach a value of USD 6,688.5 million by 2025, registering a CAGR of 25.8% over the forecast period, 2019-2025. The need to manage limited space and high rack densities, in order to reduce IT system downtime, has been driving the data center infrastructure management (DCIM) market's growth in the past few years.
- According to AFCOM estimates, the current rack density is valued at 16.9 kW in data centers. According to a study conducted by the Data Centers Association (AFCOM), close to 67% reported an increase in rack density in the past three years. Moreover, the study highlights that with an average power density of about 7 kilowatts per rack, most data centers face challenges in managing their IT workloads with traditional air-cooling methods.
- Factors driving the rack density include the growth of cloud computing, Big Data, and AI. It is highly essential to manage IT since more equipment is fit into the data center space. Such facts indicate the need for solutions such as DCIM.
- The increasing demand for the cloud and data traffic moving from and within the data centers are expected to bolster the market's growth over the forecast period. According to Cisco Systems, the cloud data center IP traffic is expected to reach 19,509 exabytes per year by 2021, as compared to 1,046 exabytes per year of traditional data center traffic.
- Vendors in the market are focusing on expanding their product portfolio by concentrating on increased power consumption capacities and lower space requirements. For instance, in January 2019, nVent Schroff GmbH introduced its SCHROFF RackPower Intelligent Power Distribution Unit (PDU) platform for networking and data center infrastructure, primarily for customization, in order to address unique customer requirements and easy configuration with no minimum quantity restrictions.
Key Market Trends
Large Data Centers is Expected to Hold a major Share
- Data in the current time is being considered as the foundation of the emerging economy. Almost all the enterprises across the world are using much more data than what they did before and may probably consume even more data in the future. This rapidly increasing generation of data has to be stored and accessed from somewhere, which is the primary reason for the growth of large data centers, which is driving the market, as these large data centers are needed to run efficiently and managed properly.
- Some of the key drivers that are directly influencing the growth of these large data centers are cloud computing, software platforms, social media, and content delivery. Social media has evolved to be a powerful tool with over 2.28 billion users, worldwide, generating volumes of data in the form of blogs, tweets, updates, images, and videos.
- According to Cisco Systems, the global IP data traffic increased from 96,054 petabytes per month in 2016 to 150,910 petabytes per month in 2018, and this is anticipated to reach 278,108 petabytes per month by 2021.
- The growing need for data centers and cloud resources from both the consumer service and business perspective has led to the development of large-scale public cloud data centers, called hyperscale data centers. According to Cisco, hyperscale data centers are expected to increase by more than 60% by 2021, as compared to 2016.
Asia Pacific to Execute Significant Growth Rate
- Asia-Pacific is expected to hold a significant share and register the highest growth rate during the forecast period. This is due to various factors, such as rapid growth in the number of data centers in the region supplemented with the government's initiatives mandating the deployment of data centers in the region.
- The growing adoption of cloud services among SMEs is high in the region, as the adoption of IoT devices among various industries is increasing, which is further estimated to raise the workloads on the existing data center infrastructure. Hence, growth in these industries may thrive in the market for data center infrastructure management solutions.
- In August 2019, Oracle opened a new "Generation 2 Cloud" data center in Sydney, which is specifically designed to accelerate the transformation to the cloud. The data center is equipped with several advanced technologies, such as artificial intelligence, machine learning-integrated security, and automated analytics.
- Also, in April 2019, Hitachi Vantara introduced its Hitachi Virtual Storage Platform G130, for the Asia-Pacific (APAC) market. It is an extension of the hybrid-flash VSP G series systems that supports smaller data center modernization initiatives, with minimal costs for SMEs.
The competitive rivalry in the data center infrastructure management market is high, owing to the presence of some major players, such as IBM, Siemens, Schneider electric. Their ability to continually innovate their offerings has allowed them to gain a competitive advantage over other players. Through strategic partnerships, R&D, and mergers and acquisitions, they have been able to obtain a stronger foothold in the market.
- February 2020 - Eaton announced its plan to acquire Power Distribution Inc. (PDI), a supplier of power monitoring equipment and services, critical power distribution solutions, static switching for data centers, and industrial and commercial services. This acquisition may enable Eaton to leverage its existing power offerings and serve the data center customers better.
- October 2019 - Schneider Electric announced new data center solutions focused on the hybrid IT world with the introduction of EcoStruxure Data Center Solutions. It provides one-stop solutions for power, cooling, racks, and management to support the deployment of distributed IT networks in all environments ranging from small edge applications to hyper-scale cloud data centers.
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TABLE OF CONTENTS
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.2.1 Rising Need to Manage Energy Consumption across Datacenters
- 4.2.2 Increase in the Number of Datacenters
- 4.3 Market Restraints
- 4.3.1 Need for Heightened Security for Physical and Network Infrastructures
- 4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 Data Center Type
- 5.1.1 Small- and Medium-sized Data Centers
- 5.1.2 Large Data Centers
- 5.1.3 Enterprise Data Centers
- 5.2 Deployment Type
- 5.2.1 On-premise
- 5.2.2 Colocation
- 5.3 Geography
- 5.3.1 North America
- 5.3.2 Europe
- 5.3.3 Asia-Pacific
- 5.3.4 Latin America
- 5.3.5 Middle-East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Itracs Corporation Inc. (CommScope Inc)
- 6.1.2 Nlyte Software Inc.
- 6.1.3 FNT GmbH
- 6.1.4 ABB Ltd
- 6.1.5 Siemens AG
- 6.1.6 IBM Corporation
- 6.1.7 Eaton Corporation PLC
- 6.1.8 Johnson Controls International PLC
- 6.1.9 Vertiv Holdings
- 6.2 Investment Analysis
7 MARKET OPPORTUNITIES AND FUTURE TRENDS