14th
December 2018: The Data Center Server market is expected to witness high growth
owing to the growth in the telecommunication industry. The telecom market is
expected to fuel by increasing demand of consumer internet usage and by growing
demand of business mobility solutions. The emerging market of telecommunication
industry is expected to show highest growth rate in the next seven years due to
the increasing domestic investments, high economic development, and increasing
foreign investments.
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Data center server market is also expected to see growth owing to
the growth of Enterprise resource planning applications in the industries. The
ERP is projected to show growth of more than 5% CAGR over the forecasted period
due to the increasing organizations dependency on business processes
integration. Today, globally every industry finds ERP as a solution to reduce
cost, increase operational efficiency, customer satisfaction, increase
productivity and increase revenues. The data center server is basically a
facility primarily used to house computer systems and associated components.
The market has seen boom after the introduction of dot-com services in the
period of 1997-2000 and after the introduction of cloud computing. They generally
include redundant data communications connections, backup power supplies,
security devices, and environmental controls (fire suppression, air
conditioning). With the adoption of client-server model, the market of data
center server has become crucial for many industries such as IT,
Telecommunication, Defense, Manufacturing, and Automobile.
The global data center facilities support in consolidating the
large data centers to a centralized location, thus, purveying the computing
resources from that single location. This propels the data center server market
to have better performance capability, high computing density and less physical
space compared to earlier rack systems. Data center servers have facilitated
organization to have better power consumption, thus driving s demand globally.
Today growing demand of cloud computing has also led the businesses and
government organizations to upgrade the data centers to a higher degree so that
transition of information, and business process do not take much resources. For
an effective functioning of data center servers, a balanced investment is
required in stretching up the facility with housed equipment.
The market is segmented largely by region into North America,
Latin America, Asia Pacific, Europe, and Middle East. The North American and
the European regions accounts for more than half of the market share globally
largely by the US. This is mainly due to presence of companies that are
dedicated in large data center servers. The Asia Pacific region is expected to
witness fastest growth due to the increasing investments and growth in
industries such as Automotive, Finance, Infrastructure, Healthcare, IT, and
Cloud Data Service. Particularly countries such as India, China, Japan, and
Singapore accounts for major market share of more than one third mainly because
of increasing Globalization and increasing economic developments. Organizations
working in these countries have high demand of data center servers as compared
to other countries in APAC.
Middle East & African is a high potential market as people
have very high disposable income but due to lack of awareness about cloud
services and data centers, they tend to use conventional services of data
management for their business processes. In the forecasted period, it is
expected that the market of MEA show a substantial increase in the demand
primarily due to the increasing investments by foreign companies. The key
market players in the market are Cisco Systems (U.S.), Hewlett-Packard (U.S.),
Lenovo Group Limited (China), Dell (U.S.), Fujitsu (Japan), Hitachi (Japan),
and Huawei (China). These companies cater services to companies such as
Alibaba, Facebook, Amazon, Google, Microsoft, Tencent, and Baidu.
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