Data Center Infrastructure Management (DCIM) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The Global Data Center Infrastructure Management (DCIM) Market was valued at USD 2122.9 million in 2020, and is expected to reach a value of USD 8348.96 million by 2026, registering a CAGR of approximately 25.8% over the forecast period (2021 - 2026). Due to the Covid-19 pandemic, challenges with respect to construction of new data center capacity has risen. Majority of the vendors are postponing or cancelling projects or activities which could increase the risk of infection. As per Vantage, construction being stalled is inevitable as multiple workers move around building sites, making the social-distancing rules hard to implement in lieu of ensuring safety of staff.

Hence, during the initial months of 2020, the global data center market observed a significant decline. However on COVID-19 outbreak, the market witnessed exponential growth after March and April. This growth spike was due to the growing number of people working from home. The need to manage limited space and high rack densities, in order to reduce IT system downtime, has been driving the data center infrastructure management (DCIM) market’s growth in the past few years.

• According to AFCOM estimates, the current rack density is valued at 16.9 kW in data centers. According to a study conducted by the Data Centers Association (AFCOM), close to 67% reported an increase in rack density in the past three years. Moreover, the study highlights that with an average power density of about 7 kilowatts per rack, most data centers face challenges in managing their IT workloads with traditional air-cooling methods.
• Factors driving the rack density include the growth of cloud computing, Big Data, and AI. It is highly essential to manage IT since more equipment is fit into the data center space. Such facts indicate the need for solutions such as DCIM.
• The increasing demand for the cloud and data traffic moving from and within the data centers are expected to bolster the market’s growth over the forecast period. According to Cisco Systems, the cloud data center IP traffic is expected to reach 19,509 exabytes per year by 2021, as compared to 1,046 exabytes per year of traditional data center traffic.
• Vendors in the market are focusing on expanding their product portfolio by concentrating on increased power consumption capacities and lower space requirements. For instance, in January 2019, nVent Schroff GmbH introduced its SCHROFF RackPower Intelligent Power Distribution Unit (PDU) platform for networking and data center infrastructure, primarily for customization, in order to address unique customer requirements and easy configuration with no minimum quantity restrictions.

Scope of the Report

Datacenter infrastructure management refers to the convergence of core physical or hardware-based resources and components, including all IT infrastructure devices, equipment, and technologies that comprise a data center within an organization. The study is under consideration based on the type of data center, deployment type, and geography.

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Key Market Trends

Small and Medium Sized Data Centers is Expected to hold Significant Growth rate

• The word small data center does not always mean the implementation of a data center in a small business. A large enterprise can also create and deploy multiple small data centers within its footprint, depending upon the business needs and operational feasibility. These data centers can be viewed as demarcation points between various distinct teams or business functions.
• Although the traditional data center network operations center will remain crucial, but owing to the rise in cloud adoption, the overall management structure is expected to change, primarily to provide an end-to-end view of the data center operations as well as the cloud-based services in both public and private clouds. With the advent of software-defined data center (SDDC), it is expected to become a standard model for data center operations, in both the legacy and new deployments irrespective of the size of the data center. This is because of the ability of these data centers to add services on demand will is a top priority for most of the companies today.
• Furthermore, with the rise of edge computing the market is expected to witness the emergence of a rapidly growing array of smaller data centers that are built closer to the population centers. For instance, Telecom operators and enterprises in the US and Europe are expected to spend about USD 272 billion on edge computing capabilities between now and 2026. This would fuel the need for smaller data centers over the forecast period.
• Edge technologies, such as wireless medical devices and sensors, are lacking the necessary compute capacity to process large streams of complex data directly. As a result, smaller data centers are expected to be deployed in the future, to offer hyper-local storage and processing capacity at the edge.

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