Published By : 19 Apr 2016 | Published By : QYRESEARCH
Data centers are facilities that comprise of computing systems and their associated storage systems, power distribution systems, cooling systems, servers and networking equipment. Other important data storage equipment include flash memories, hard disks, CDs, DVDs, and solid state drives. Growing demand for cloud services and high demand for data center equipment are driving the global data center equipment market.
According to a report published by a market intelligent company called Transparency Market Research, the global data center equipment which was worth US$32.15 bn in 2013 is expected to grow at a CAGR of 12.9% from 2014 to 2020 and reach a value of US$72.07 bn by 2020. The growing digitization of data across several industries such as healthcare, IT, BFSI, telecommunications, pharmaceuticals, and businesses have led to the growth in the global data center equipment market.
North America to be the Largest Market for Data Center Equipment in the Future
The global data center market is segmented on the basis of geography into Europe, North America, Asia Pacific, and Rest of the World. Out of these, North America is expected to be the largest market for the data center equipment in the forthcoming years, owing to e-discovery, exponential increase in the amount of data generated, and dependence on critical programs for business processes. Europe is also expected to witness a healthy growth and together these regions account for 49.3% in the year 2013.
Government Compliances Regarding Cooling Systems Poses as Threat for Data Center Market
Data centers require large amounts of energy to function and as such, they need effective power and cooling infrastructural facilities. Meeting the environmental orders and government compliances regarding the cooling systems can be a challenge for the data center market. High construction cost is one of the factors restraining the Southeast Asia data center market. The high initial installation cost will also restrict the market from growing. However, emerging trends such as the construction of green data centers will keep up the business of data centers in the coming years.