Smart Data Storage to Push Global Data Center Infrastructure Market

Thursday, March 11, 2021 Edit this post

The total investment in DCIS is expected to reach $26.15 billion by 2025, finds Frost & Sullivan

Smart Data Storage to Push Global Data Center Infrastructure Market

Frost & Sullivan's recent analysis finds that investments from technology and industrial firms in the next-generation enterprise, cloud, and co-location data centers will accelerate the growth of the global data center infrastructure solutions (DCIS) market. Continual high volumes of data created worldwide have led to increased data center investments, boosting the need for power and cooling solutions that are environmentally friendly, highly efficient, and reduce the overall cost of ownership. Despite companies reducing construction activities during COVID-19, the industry will witness significant growth in 2021 due to pent-up demand. The total investment in DCIS is expected to reach $26.15 billion by 2025 from $16.73 billion in 2019, up at a compound annual growth rate (CAGR) of 7.7%. Technology and telecommunication firms from the United States and China will continue their robust expenditure during the next decade to dominate the data center space.


Global Data Center Infrastructure Market to Thrive with Pent-up Demand for Smart Data Storage

"Data creation is also expected to occur at a faster pace, as 5G will enable activities such as augmented and virtual reality, smart sensor technology, and advanced mobile video and gaming, all of which drive data traffic. The presence of micro data centers in the form of multi-access edge computing (MEC) sites within the 5G networks will bring data processing and storage close to the customer end," said Manoj Shankar, Energy & Environment Research Analyst at Frost & Sullivan. "However, these MEC sites will have increased power requirements, which lead to the development of innovative power and cooling solutions that cater to the needs of 5G networks, thereby driving micro and modular infrastructure development."


Shankar added: "The demand for more efficient infrastructure solutions to process data, along with cooling and rack-based products, will lead the DCIS market. Uninterrupted power supply (UPS) and generators will also feature prominently as a data center backup power source as companies seek to reduce downtime, hence deploying multiple backup power solutions."


With the increase in connected devices and the advent of 5G, new edge data centers need to be developed, presenting tremendous growth prospects for DCIS market participants, including:


  • Connecting with other suppliers to introduce new products that provide customers with a wide variety of options that cater to their different needs.

  • Opening subsidiaries in new regions in collaboration with data center technology providers that are setting up new data centers to gain market access.

  • Partnering with global telecom operators to get direct access to edge data centers, understand the technology, and field test new products.

  • Focusing on penetrating the product replacement market as companies can offer new, more efficient solutions that cater to the modern data center's varied demands.


Adoption of Advanced Processors and Servers Sparks Innovation across the Global Data Center Infrastructure Solutions (DCIS) Market is the latest addition to Frost & Sullivan's Energy & Environment research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.


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IndraStra Global: Smart Data Storage to Push Global Data Center Infrastructure Market
Smart Data Storage to Push Global Data Center Infrastructure Market
The total investment in DCIS is expected to reach $26.15 billion by 2025, finds Frost & Sullivan
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