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Data Center Server Market is Projected to Reach 100 Billion by 2027

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Data Center Server Market is Projected to Reach 100 Billion by 2027

According to a recent study from market research firm Global Market Insights, Growing demand for high-performance servers worldwide is expected to boost the data center server market size in the coming years. There has been a high demand for advanced data center infrastructure solutions in recent years across many industries. Driven by increasing demand, numerous data center business operators are expanding their presence into untapped regions. Industries across the Asia Pacific and North America are increasingly relying on cloud data centers. As per a report published by Global Market Insights, the global data center server market is expected to exceed USD 100 billion by 2027.

Key players functioning in the data center server market are focusing on launching new innovative solutions to strengthen their market position. They are also offering supporting software solutions for remote monitoring of servers. For instance, Chinese technology major, Lenovo Ltd. offers servers that provide easy setup, firmware, and remote server management with the latest Intel Active Management Technology.

Notably, the recent adoption of digitalization in healthcare has also played a major role in surging the demand for data center servers. Healthcare organizations are gradually accepting online methods of payment like the adoption of POS terminals for contactless transactions. To employ an integrated platform that controls payment transactions, the healthcare sector is edging towards the use of cloud POS software solutions across premises.

Elaborated below are some of the key trends driving data center server market expansion:

1) Rising demand for tower servers

Tower servers are witnessing a high demand as they deliver versatile storage configurations and powerful performance in a small footprint for SMBs to big institutions. These servers have the capacity for high optimization and customization, hence allowing firms to adopt a server configuration that fits to their requirements. Compared to other servers, tower servers ensure quiet operations. The agility and scalability provided by tower servers can propel their demand by expanding and emerging businesses.

2) Increasing adoption in the healthcare sector

Several healthcare organizations are using POS terminals to allow contactless transactions and accept digital payments during the pandemic. They are adopting cloud POS software solutions to employ an integrated platform that controls payment transactions throughout the whole premise. The industry is also using technologies like telemedicine and video conferencing, in order to enable remote consultations. The growing presence of digitalization is likely to fuel the demand for data center infrastructure solutions for efficiently managing data.

3) Presence of key automotive manufacturers in Europe

The promising manufacturing sector along with the rising adoption of advanced digital technologies is expected to boost the demand for data center servers for networking and data storage. Major automotive manufacturers such as Mercedes-Benz and BMW AG are using sophisticated technologies including IoT and machine learning, in their production centers to accelerate productivity. A surge in data traffic could drive the demand for advanced IT infrastructures which can efficiently help transfer and store vast volumes of data.

Key Companies covered in the data center server market are Acnodes, AsusTek Computer Inc., ATOS SE, Cepoint Networks LLC, Cisco Systems Inc., Dell Technologies Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., Hitachi Ltd., Huawei Technologies Co. Ltd., IBM Corporation, Inspur Group, Intel Corporation, Lenovo Group Ltd., NEC Corporation, Nvidia Corporation, Oracle Corporation, Panaro Tech Private Ltd., Premio Inc., Super Micro Computer Inc.


cable wire

The Expansion of Data Center Facilities and Telecom Drives the Global Wire And Cable Market While the Pandemic Hampers Construction and Industry

IndexBox has just published a new report: ‘World – Insulated Wire And Cable – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

In 2019, the global wire and cable market increased by 0.5% to $239.6B, rising for the third consecutive year after two years of decline. The market value increased at an average annual rate of +1.0% from 2012 to 2019; the trend pattern remained relatively stable, with only minor fluctuations being recorded in certain years.

Insulated wire and cable consumption tend to follow distributional and industrial electrical utility construction, the creation of new communities, and a replacement cycle. Therefore, the rising demand for insulated wire and cable will also be shaped by both the residential construction sector and industrial production alike, which are conditioned by rising population and urbanization, particularly in Asia. Thus, the largest wire and cable markets worldwide were China ($53.2B), the U.S. ($27.4B) and Indonesia ($13.8B), together accounting for 39% of the global market (IndexBox estimates). These countries were followed by Japan, Mexico, India, Germany, Russia, France, South Korea, the UK, Turkey and Italy, which together accounted for a further 27%.

Capital investment and the expansion of transport and telecom infrastructure also constitute major factors behind the market growth; overall, those factors reflect the global GDP growth.

The telecommunications market uses a wide range of wire and cable products. With the active development of the electronic devices market, continuous improvement of the existing telecommunication infrastructure is required, including within the framework of modernization, which will contribute to the growth of the insulated wire and cable market.

The development of the 5G and other wireless networks, on the one hand, requires less data cable systems, but on the other hand, it needs more power supply cable systems for base stations. Moreover, the growth of demand for data centers amid the penetration of big data and machine learning to major business sectors shapes the demand for both data and power cable systems. Thus, insulated cables for a voltage under 80 V feature as the most imported category of cables in the world, with imports amounting to 4M tonnes in 2019, which equated to $26B.

Overall, imports of insulated wire and cable amounted to 9.6M tonnes in 2019. In value terms, wire and cable imports shrank to $112.5B (IndexBox estimates) in 2019. In value terms, the U.S. ($20.8B), Germany ($10.5B) and Japan ($7.5B) appeared to be the countries with the highest levels of imports in 2019, together accounting for 34% of global imports. These countries were followed by China, Mexico, France, the UK, Hong Kong SAR, Spain, Canada, South Korea, the Czech Republic and the Netherlands, which together accounted for a further 30%.

Until 2020, the global economy has been developing steadily for five years, although at a slower pace than in the previous decade. The slowdown in global economic growth was caused by increased political uncertainty in the world and trade wars between the United States and China. According to the World Bank outlook from January 2020, the global economy was expected to pick up the growth momentum and increase from +2.5% to +2.7% per year in the medium term.

In early 2020, however, the global economy entered a period of the crisis caused by the outbreak of the COVID-19 pandemic. In order to battle the spread of the virus, most countries in the world implemented quarantine measures that put on halt production and transport activity.

The combination of those factors disrupts economic growth heavily throughout the world. According to World Bank forecasts, despite the gradual relaxing of restrictive measures and unprecedented government support in countries that faced the pandemic in early 2020, the annual decline of global GDP could amount to -5.2%, which is the deepest global recession being seen over the past eight decades.

Both the construction and industrial sectors have proven vulnerable to the pandemic. Thus, the above economic prerequisites will have the most negative impact on the expansion of new residential and non-residential construction projects, thereby hampering the demand for electricity and electrical networks.

Due to quarantine measures, construction projects were paused, and the drop in incomes of the population makes mortgage loans less affordable. In addition, the reduced capital investment may lead to the postponement of plans for the building of new infrastructural and industrial facilities.

Moreover, the disruption of established international supply chains between insulated wire and cable producers and consumers due to asynchronous quarantine measures and restricted transport activity also hampers the market growth.

Taking into account the above, it is expected that in 2020, global consumption of insulated wire and cable should decline slightly against 2019. In the medium term, as the global economy recovers from the effects of the pandemic, the market is expected to grow gradually. Overall, market performance is forecast to pursue a slightly upward trend over the next decade, expanding with an anticipated CAGR of +0.3% for the period from 2019 to 2030, which is projected to bring the market volume to 24M tonnes by the end of 2030.

Source: IndexBox AI Platform