Data Center IT Equipment Market to Grow by USD 73.6 Million (2024-2028), Driven by Multi-Cloud Adoption and 5G Network Upgrades, AI Redefining Market Landscape - Technavio

NEW YORK, Nov. 25, 2024 /PRNewswire/ -- Report with market evolution powered by AI - 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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Key Market Trends Fueling Growth

The Data Center IT Equipment market is experiencing significant trends in the Foodservice Disposables sector. The Plastic segment is currently dominating, but Biodegradable plates are gaining popularity due to increasing Environmental concerns and Sustainability initiatives. The Household sector and Fast food consumption are major drivers, with the Coronavirus pandemic accelerating the shift towards Takeaway food and Food delivery apps. Urbanization and Changing consumer lifestyles are also contributing factors. Industry sources report that Biodegradable plates, particularly those made from renewable resources like sugarcane and cornstarch, are in high demand. The Westernization of food culture, including the growth of Fast-food chains and Small commercial eateries, is also driving sales. Events and Roadside vendors are adopting these eco-friendly options for their Foodservice industry needs. Manufacturing businesses are innovating to meet this demand, offering Customized disposable plates and Sustainable packaging solutions. The Food delivery industry, particularly Foodservice disposables market, is a major sales channel. Millennial consumers, who prioritize Convenience and Hygiene and safety, are a key demographic. However, there are Restraint Factors, including the Environmental impact and the need for Sturdiness and durability, that must be addressed. Overall, the market is expected to continue growing as the Foodservice industry adapts to evolving consumer preferences and Sustainable practices. 

The edge computing model, which processes IoT-generated data near its source, gained significant traction as the number of Internet-connected devices reached an estimated 11.7 billion in 2020. This massive growth in connected devices has led to the generation of vast amounts of data, driving demand for the global data center IT equipment market. The concept of IoT was popularized in the late 1990s through the use of RFID sensors in logistics and warehouses. As the number of connected devices continues to increase, the demand for data processing and storage solutions will follow suit. 

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Market Challenges

• The Data Center IT Equipment market faces several challenges in the Foodservice Disposables market. The Plastic segment is under pressure due to growing concerns over its environmental impact. The Household sector and Fast food consumption, driven by Westernization and Food packaging trends, are significant markets. Biodegradable plates, a sustainable alternative, are gaining popularity among Millennial consumers and Takeaway food chains. Urbanization and changing consumer lifestyles have led to increased demand for Convenience. However, the Foodservice industry faces Restraint Factors like Environmental impact and Sturdiness and durability. Industry sources indicate that Biodegradability and Sustainability are Trending factors. Product innovations in Biodegradable plates, driven by Sustainable practices and Hygiene and safety concerns, are expected to drive growth. Manufacturing businesses in the Food delivery industry are responding to these challenges by producing Customized disposable plates for various Sales channels, including Restaurants, Hotels, and Commercial places. The Coronavirus pandemic has accelerated the shift towards Biodegradable plates, as Hygiene and safety concerns become paramount. The Foodservice Delivery apps market is also expected to contribute significantly to the growth of the Biodegradable plates segment.
• Infrastructure-as-a-Service (IaaS) is a cloud computing concept where businesses utilize virtualized computing resources over the Internet. Notable IaaS providers include DigitalOcean, Linode, Rackspace, Amazon Web Services, Cisco Metapod, Microsoft Azure, and Google Compute Engine. The increasing adoption of IaaS has resulted in data center consolidation, merging multiple facilities to decrease operating costs and control emissions. Software companies, such as Box, Salesforce, Tableau, and SAP, are transitioning to common cloud platforms, reducing the need for individual data centers. This trend is expected to continue, with more companies announcing plans to use public cloud services.

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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
2. End-user 
• 2.1 IT and telecommunication
• 2.2 BFSI
• 2.3 Government and public
• 2.4 Healthcare
• 2.5 Others
3. 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-  Data center servers play a crucial role in processing, storing, and distributing data for various applications and workloads. Enterprises and service providers rely on servers to support their operations, with rack servers being the most widely used type. These servers can be installed in frames called racks, accommodating other hardware equipment. Rack servers are popular among enterprises and SMEs due to their suitability for fixed business requirements and efficient use of space. The data center server infrastructure segment has seen significant growth in the past five years and is expected to continue expanding. This growth is driven by the increasing adoption of cloud services, data-intensive applications, and the need for scalable and high-performance computing solutions. The server equipment market is expected to grow steadily during the forecast period, with investments being made in the expansion and building of new data centers, as well as technology refresh cycles. Other server types include blade, tower, and modular servers, each catering to diverse computing requirements. Despite the capital expenditure (CAPEX) model's dominance, there is a shift towards the operational expenditure (OPEX) model to optimize server infrastructure utilization and reduce costs. This trend has also fueled the demand for server consolidation, virtualization, and containerization.

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Research Analysis

The Data Center IT Equipment Market is experiencing significant growth, driven by various factors in the foodservice industry. The plastic segment is currently dominating the disposable plates market due to its affordability and convenience. However, the household sector is shifting towards biodegradable plates as part of a growing trend towards sustainable practices. The coronavirus pandemic has further accelerated this trend as consumers demand more hygienic and disposable options. Urbanization and Westernization have led to an increase in fast food consumption and takeaway food chains, driving demand for disposable plates. Biodegradable plates made from renewable resources, such as sugarcane, corn starch, and potato starch, are gaining popularity due to their biodegradability and eco-friendliness. The food packaging industry is also embracing sustainability, with an increasing focus on sustainable packaging solutions. Millennials, who prioritize convenience and environmental concerns, are a key consumer demographic driving this trend. Restaurants, hotels, and commercial places are adopting customized disposable plates to enhance their branding and customer experience. Sales channels, including food delivery apps and roadside vendors, are also adopting biodegradable plates to meet consumer demand. Manufacturing businesses and the food delivery industry are investing in product innovations to meet the growing demand for sustainable and hygienic disposable plates. Environmental concerns, sustainability, and hygiene and safety are the key driving factors for the market, while restraints include cost and availability of raw materials.

Market Research Overview

The Data Center IT Equipment Market is experiencing significant growth due to the increasing demand for sustainable and eco-friendly solutions in various industries. One such segment witnessing is the Foodservice Disposables Market, which includes biodegradable plates made of plastic. The household sector, fast food consumption, and takeaway food chains are major contributors to this market's growth. The coronavirus pandemic has further accelerated the trend towards disposable plates due to hygiene and safety concerns. Biodegradable plates are gaining popularity due to their environmental benefits, aligning with the growing trend of sustainable packaging. Urbanization and Westernization have led to an increase in the number of commercial places, hotels, and restaurants, driving the demand for disposable plates. The foodservice industry, including roadside vendors and events, also contributes significantly to the market's growth. Product innovations, such as customized disposable plates, are trending, catering to the changing consumer lifestyles and preferences of millennials. The food delivery industry, including food delivery apps, is also driving the demand for biodegradable plates due to their convenience and sustainability. However, the market faces restraints due to the environmental impact and the need for sturdiness and durability. Overall, the Data Center IT Equipment Market's growth is influenced by various factors, including sustainability, convenience, changing consumer lifestyles, and environmental concerns. Industry sources suggest that manufacturing businesses are focusing on product innovations to cater to the evolving market demands.

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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SOURCE Technavio