Market Trends of Data Center Infrastructure Management (DCIM) Industry
This section covers the major market trends shaping the Data Center Infrastructure Management Market according to our research experts:
Small and Medium Sized Data Centers is Expected to hold Significant Growth rate
- The word small data center does not always mean implementing a data center in a small business. Depending on business needs and operational feasibility, a large enterprise can also create and deploy multiple small data centers within its footprint. These data centers are demarcation points between various teams or business functions.
- Although the traditional data center network operations center will remain crucial, 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 and the cloud-based services in both public and private clouds. With the advent of the software-defined data center (SDDC), it is expected to become a standard model for data center operations in both legacy and new deployments, irrespective of the data center's size. This is because the ability of these data centers to add services on demand will be a top priority for most companies today.
- Furthermore, with the rise of edge computing, the market is expected to witness a rapidly growing array of smaller data centers 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, lack the necessary computing 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.
- Small data centers are flexible and do not need much space. A small or medium-sized data center can be built in an old property utilizing the existing facilities. The data center developers are witnessing an increasing need to deploy small data centers, mainly between the capacity of 750 kilowatts to 1 megawatt, around highly populated areas.
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North America to Dominate the Market
- The expansion of mobile broadband, growth in cloud computing, and big data analytics are driving the demand for new data center infrastructures in the region. Moreover, the declining prices of servers have increased the adoption of cloud computing businesses across North America, which is expected to fuel the demand for DCIM during the forecast period.
- In the United States, the Western area has a mature and developed data center market. Data center operators will benefit from the region's high connectivity and closeness to IT hubs, making it a good investment. Digital companies, such as cloud providers and other IT and technology enterprises, accounted for about 90 percent of the industry in California.
- Primary markets in the United States witnessed record absorption in 2021, up 50% from 2020. As a result, total inventory in these markets increased by 17% to 3,358 MW, with another 728 MW under development. In the United States, primary markets saw record absorption in 2021, up 50% from 2020. According to North America Data Center Trends H2, 2021 by CBRE, overall inventory in these markets climbed by 17% to 3,358 MW, with another 728 MW under construction.
- Moreover, In August 2021, Blackstone Infrastructure Partners, Blackstone Real Estate Income Trust, Inc., and Blackstone Property Partners announced that their acquisition of QTS Realty Trust for approximately USD 10 billion, including debt, had been completed. The common stock, Series A preferred stock, and Series B preferred stock of QTS will no longer be traded publicly.
- Almost two-thirds of data centers in the United States experience higher peak demands, with a power density of around 15 or 16 kW per rack, according to Datacenter.com, a data center marketplace. Some data centers are reportedly hitting 20 or more kW per rack. This has made it imperative for users and manufacturers to deploy DCIM, enabling them to manage and run their data centers effectively.
- The key players in this region are focusing on strategic partnerships to provide improved solutions to the clients. For instance, In August 2022, VMware Inc. and IBM announced an expanded relationship at VMware Explore 2022 to help global clients and partners modernize mission-critical workloads and accelerate time to value in hybrid cloud settings. IBM and VMware intend to work together to assist clients in regulated areas such as financial services, healthcare, and government with the cost, complexity, and risk of transferring and upgrading mission-critical workloads in the cloud.
- Moreover, In April 2021, IBM announced significant storage portfolio advancements to improve data access and management in increasingly complex hybrid cloud environments for increased data availability and resilience.
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