Data Center IT Equipment Market to Grow by USD 73.6 Million (2024-2028) as Multi-Cloud and 5G Network Upgrades Drive Growth; AI Impact on Market Trends Report – Technavio

NEW YORK, Oct. 30, 2024 /PRNewswire/ — Report on how AI is redefining market landscape – The global data center it equipment market size is estimated to grow by USD 73.6 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  9.44%  during the forecast period. Rise in adoption of multi-cloud and network upgrades to support 5G is driving market growth, with a trend towards growing need for edge computing. However, increasing focus on data center consolidation  poses a challenge.Key market players include Arista Networks Inc., China Huaxin Post and Telecom Technologies Co. Ltd., Cisco Systems Inc., CoreSite Realty Corp., CyrusOne LLC, Eaton Corp. Plc, Equinix Inc., Extreme Networks Inc., Fortinet Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., IEI Integration Corp., Infineon Technologies AG, International Business Machines Corp., Juniper Networks Inc., NetApp Inc., Nokia Corp., Oracle Corp., and Schneider Electric SE.

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Market Driver

The IoT revolution has led to an unprecedented increase in connected devices, generating vast amounts of data. Industries such as manufacturing, utilities, retail, automotive, and social media are leveraging IoT for enhanced data transmission. By the end of 2021, IoT-enabled devices had increased data center traffic by 40 times. To support this expansion, organizations are investing in data center IT equipment. Edge computing, which enables real-time data analysis, reduces latency, and enhances data security, is driving this growth. The proliferation of 5G networks further fuels the demand for data center IT equipment. Consequently, the global data center IT equipment market is poised for significant growth during the forecast period. 

The Data Center IT Equipment market is experiencing significant growth, driven by the increasing demand for cloud computing and digital transformation. Components such as servers, storage systems, networking equipment, and power and cooling systems are in high demand. New technologies like containerization and artificial intelligence are also trending. The use of advanced technologies like 4G and 5G networks, as well as the integration of IoT devices, is transforming data centers. Companies are focusing on energy efficiency and sustainability, with data center cooling systems and renewable energy sources gaining popularity. The market is expected to continue growing, with CAGRs of up to 10% for some segments. 

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 Market Challenges

• The Data Center IT Equipment Market is expected to face challenges due to the increasing trend of Infrastructure-as-a-Service (IaaS) and data center consolidation. With the adoption of virtualization technologies and cloud-based infrastructure, there is a decreasing demand for on-premises IT equipment such as servers, storage devices, and networking equipment. This consolidation can lead to cost savings and efficiency for organizations but may limit growth opportunities for manufacturers and vendors in the market.
• The Data Center IT Equipment market faces several challenges in today’s digital landscape. One significant challenge is the increasing demand for high-performance, energy-efficient technology. With the growth of cloud computing and the Internet of Things, data centers require more powerful servers and cooling systems. Another challenge is the cost of maintaining and upgrading IT infrastructure. Data centers must balance the need for the latest technology with budget constraints. Additionally, security is a major concern, as data centers house sensitive information. Ensuring data security and implementing cybersecurity measures are essential. Lastly, the complexity of managing and integrating various IT components can be a challenge. Proper planning, implementation, and management of IT equipment are crucial for optimal performance and efficiency.

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Segment Overview 

This data center it equipment market report extensively covers market segmentation by  

1. Product 

• 1.1 Server equipment
• 1.2 Storage equipment
• 1.3 Network equipment
• 1.4 Others

End-user 

• 2.1 IT and telecommunication
• 2.2 BFSI
• 2.3 Government and public
• 2.4 Healthcare
• 2.5 Others

Geography 

• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Server equipment-  The data center IT equipment market is driven by the increasing demand for cloud-based services, data-intensive applications, and high-performance computing solutions. Enterprises and service providers invest in server infrastructure, shifting from capital expenditure to operational expenditure to optimize costs. Rack servers, the most common type, cater to diverse computing needs, with rack servers and other options like blade, tower, and modular servers available. The market is expanding due to the growth of new data centers and technology refresh cycles, with rack servers popular among SMEs for their space efficiency and scalability.

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Research Analysis

The Data Center IT Equipment Market encompasses various technologies and components essential for cloud computing, IoT, and digital data processing. These include servers, storage systems, networking equipment, hardware, and infrastructure components such as cooling systems and power supply units. In the 4G era, the demand for high-performance computing (HPC) and IT infrastructure, leading to increased end-user expenditure on public cloud services. Telecommunications and data centers play a crucial role in this landscape, with network operators expanding data center capacity to accommodate mobile data traffic. IT and telecom sectors, along with government and defense, healthcare, and other industries, rely on advanced IT infrastructure to manage and process their data efficiently. Gartner’s report highlights the growing importance of energy-efficient solutions, such as AI and HPC, in reducing energy consumption in data centers.

Market Research Overview

The Data Center IT Equipment Market encompasses a range of technologies and solutions designed to support the infrastructure of data centers. These include computing hardware such as servers and processors, storage systems, networking equipment, power and cooling systems, and security solutions. The market is driven by the increasing demand for digital transformation and cloud computing services. The use of advanced technologies like Artificial Intelligence, Machine Learning, and Internet of Things (IoT) is also fueling growth in the market. The need for efficient and scalable data center solutions is a key consideration for businesses and organizations, leading to the adoption of modern data center architectures like hyperscale and edge data centers. The market is expected to continue growing due to the increasing digitization of industries and the rising trend of remote work.

Table of Contents:

1 Executive Summary

2 Market Landscape

3 Market Sizing

4 Historic Market Size

5 Five Forces Analysis

6 Market Segmentation

• Product
• Server Equipment
• Storage Equipment
• Network Equipment
• Others
• End-user
• IT And Telecommunication
• BFSI
• Government And Public
• Healthcare
• Others
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape

8 Geographic Landscape

9 Drivers, Challenges, and Trends

10 Company Landscape

11 Company Analysis

12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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