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

NEW YORK, Jan. 21, 2025 /PRNewswire/ -- Report with the AI impact on market trends - 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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Market Driver

The Data Center IT Equipment Market is witnessing significant trends in the Foodservice Disposables sector. The Plastic segment is currently dominating the market due to its affordability and convenience. However, the Household sector is increasingly shifting towards Biodegradable plates, driven by Millennial consumers' preference for Sustainable packaging. The Coronavirus pandemic has accelerated this trend as consumers prioritize Hygiene and safety. The Fast Food Consumption, led by Takeaway food chains and Roadside vendors, is a major driver for the market. Urbanization and Westernization have also contributed to the growth of the Foodservice industry, particularly in Commercial places like Hotels and Restaurants. Product innovations in Biodegradable and Customized disposable plates cater to the changing consumer lifestyles. Manufacturing businesses in the Food Delivery industry are responding to these trends by focusing on Sustainability and Biodegradability. Industry sources suggest that Sales in the Foodservice Disposables market will continue to grow, driven by the increasing popularity of Food delivery apps and the need for Convenience. Despite these trends, there are Restraints, including the Environmental impact and Sturdiness and durability concerns. Overall, the market is expected to continue its growth trajectory, driven by Driving Factors like Changing consumer lifestyles and Environmental concerns, and Sustainable practices. 

The edge computing model, which processes IoT data near its source, gained significant traction in 2020 as the number of Internet-connected devices reached an estimated 11.7 billion. This IoT boom, initiated by the widespread use of RFID sensors in logistics and warehouses in the late 1990s, will continue to drive the global data center IT equipment market due to the increasing generation of vast data volumes. 

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 Market Challenges

• The Data Center IT Equipment market faces several challenges in the Foodservice Disposables sector. The Plastic segment is under pressure due to growing concerns over its environmental impact. Household sector and takeaway food chains are shifting towards Biodegradable plates, driven by Millennial consumers' preference for Sustainable packaging. Coronavirus has accelerated this trend due to Hygiene and safety concerns. Foodservice industry players, including Fast-food chains, small commercial eateries, events, and roadside vendors, are adopting Biodegradable and Sustainable practices. Urbanization and Westernization have increased Fast-food consumption, leading to a surge in Food packaging demand. Manufacturing businesses are innovating with Customized disposable plates, catering to various Sales channels, including Food delivery apps. Industry sources suggest that the Foodservice Delivery industry's growth will continue to drive demand for Biodegradable plates. However, environmental impact and Sturdiness and durability remain key Restraint factors. Overall, the Foodservice Disposables market's Driving Factors include changing consumer lifestyles, Convenience, and Sustainability concerns. Trending factors include the growing influence of Environmental concerns and Sustainable practices.
• 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 centers are essential infrastructure for businesses, housing the servers that process and store data for various applications and workloads. Servers, including rack servers, blade servers, tower servers, and modular servers, serve as the backbone of data centers. Enterprises and data center service providers aim to shift their server investments from capital expenditure (CAPEX) to operational expenditure (OPEX) for optimal utilization and cost reduction. This trend has fueled the demand for consolidation, virtualization, and containerization. The server equipment market is driven by cloud services adoption, data-intensive applications, and high-performance computing needs. Rack servers, the most common type, account for a significant market share due to their suitability for enterprises with fixed requirements. SMEs also favor rack servers for their space efficiency and scalability. The data center server infrastructure segment has grown significantly in the past five years and is expected to continue expanding through technology refresh cycles and the building of new data centers, including green, colocation, and hyperscale data centers.

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Research Analysis

The Data Center IT Equipment Market is experiencing significant growth, driven by various factors in the food industry. The plastic segment is a major contributor, with its widespread use in food packaging, particularly in the household sector and fast food consumption. However, the coronavirus pandemic has led to a shift towards biodegradable plates and other sustainable packaging solutions. Westernization and urbanization are also driving the demand for disposable plates, with takeaway food chains, roadside vendors, and foodservice delivery apps becoming increasingly popular. Millennials, with their preference for convenience and sustainability, are a key demographic. Manufacturing businesses and the food delivery industry are major sales channels, with industry sources reporting strong growth. Product innovations, such as customized disposable plates, are also gaining traction. Driving factors include environmental concerns, sustainability, hygiene, and safety, while restraints include cost and availability of biodegradable 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 that is gaining traction is the use of biodegradable plates in the foodservice industry. The household sector, fast food consumption, and takeaway food chains are major contributors to the Foodservice Disposables Market. The coronavirus pandemic has further accelerated the shift towards contactless food delivery and takeout, fueling the demand for biodegradable plates. Urbanization and Westernization have led to an increase in the number of commercial places, hotels, and restaurants, driving the sales of disposable plates. The foodservice industry, including roadside vendors and events, also contributes to the market's growth. The millennial consumers' preference for convenience and sustainable practices, along with environmental concerns, are key driving factors. Product innovations, such as biodegradable and customized disposable plates, are trending in the market. However, the environmental impact and sturdiness and durability of biodegradable plates are restraint factors. The food delivery industry, including food delivery apps, is also a significant contributor to the market's growth. Industry sources suggest that the market is expected to continue its upward trajectory due to the changing consumer lifestyles and the growing importance of sustainability. Manufacturing businesses are investing in research and development to create more sustainable and eco-friendly solutions for the foodservice industry.

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