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Global data center equipment market to be worth $72 billion by 2020

17 Feb 2016

The global data center equipment market will be worth US$72 billion by 2020, driven by rising demand in telecommunication, according to a new report by Transparency Market Research (TMR).

According to the report, the global data center equipment market will expand at a 12.90% CAGR during the forecast period from 2014 to 2020. In 2013, the global data center equipment market was worth more than US$32.1 bn and by 2020, it is projected to be worth US$72.0 bn.

The report shows this market is driven by the rising virtualisation in network environments. Moreover, the elevated adoption of cloud services and big data will also fuel the global data center equipment market.

On the other hand, the global data center equipment market will be challenged by the high energy consumption and cooling issues of data centers. Furthermore, the lack of a skilled workforce will also continue to hamper the global data center equipment market in the coming few years.

Broadly, the global data center equipment market is segmented on the basis of product, application, and geography. Product-wise, the global data center equipment market is divided into servers, storage devices, power distribution systems, and others.

Data center equipment is extensively used in various end-use industries because of proliferation of digital data and also for effective data management to extract strategic and crucial information, TMR says. 

Application-wise, the global data center equipment market is classified into business enterprises, government, manufacturing, retail, healthcare, manufacturing, telecommunications, banking, financial services, and insurance (BFSI), and others.

TMR says in 2013, the telecommunications segment led the global data center equipment market, mainly because of the unparalleled online presence of banking consumers around the world and continuous growth in internet-enabled services.

These services have resulted in the exchange of a large amount of data over the web, which has led to an elevated demand for tools that can offer safety, data integrity, and high standards at data centers, according to TMR. 

Regionally, the global data center equipment market is segmented into Asia Pacific, Europe, North America, and Rest of the World (RoW). In the coming few years, Asia Pacific and the Rest of the World boast of the largest internet subscriber base. Hence, these two regions are witnessing a fast expansion of internet-based services. This trend is projected to help these two regions emerge as high-potential markets in the global data center equipment market, TMR says.

Players in the global data center equipment market will enjoy the significant opportunities provided by software-defined data centers, TMR finds. Another trend that will generate market opportunities is the rising demand for green data centers, according to the researchers.

The key leading companies operating in the global data center equipment market are Hewlett-Packard, Emulex Corporation, F5 Networks, Alcatel-Lucent, NEC Corporation, and Schneider Electric SA, according to TMR.

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