Data Center Infrastructure Management Market Forecasts to 2028 – Global Analysis By Data Center Type (Enterprise Data Center, Managed Data Center, Colocation Data Center), Component, Tier, and By Geography

Data Center Infrastructure Management Market Forecasts to 2028 – Global Analysis By Data Center Type (Enterprise Data Center, Managed Data Center, Colocation Data Center), Component, Tier, and By Geography

According to Stratistics MRC, the Global Data Center Infrastructure Management Market is accounted for $2.00 billion in 2022 and is expected to reach $4.05 billion by 2028 growing at a CAGR of 12.5% during the forecast period. 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. DCIM is controlled by power usage, heat densities, virtualization and data center consolidation, cloud computing and raising IT system dependency. With growing demand for data center virtualization, business migration into private clouds, and operating cost efficiency, the Data center network management market has emerged as the main market for IT and facility management vendors. It aids in observing environmental conditions and capturing detailed information in real-time. It also aggregates and analyzes power usage effectiveness (PUE) and cooling system energy efficiency using energy-monitoring sensors.

In 2022, spending on data center systems is expected to amount to 227 billion U.S. dollars, an increase of 4.7 percent from the previous year. The overall IT market experienced a recession in 2020, due to the negative economic impact brought about by the coronavirus (COVID-19) pandemic, but is almost back to the same levels as in 2019. As per data from a recent report, in 2020, 42 percent of respondents mentioned that they refreshed their data center servers every two to three years, whilst 26 percent stated that they did so every year.

Market Dynamics:

Driver:

Inclination of organizations for cloud-based deployments

Many key players are increasingly distributing their computing resources across a number of environments, including cloud servers, edge data centers, and physical systems. According to the 2018 Voice of the Enterprise: Datacenter Transformation, Budgets, and Outlook survey, 57% of respondents agreed to be utilizing cloud service providers, another 54% owned and operated their data center facilities, and 41% rented space from colocation data center providers. This continuous adoption of the hybrid approach for both agility and 24X7 connectivity has caused an influx in the adoption of Software as a Service (SaaS) offerings.

Restraint:

Complexities involved in integrating real-time devices

The data center infrastructure management software requires to be connected to sensors and meters for various applications. Most traditional data center equipment, such as UPS, chillers, cooling towers, and Computer Room Air Handlers (CRAHs)/CRACs, lack real-time energy meters and environmental sensors. These applications include monitoring and analysis of power usages and cooling statistics to achieve better power efficiency in real time. Hence, the vendors face challenges in modifying a traditional data center to integrate real-time devices.

Opportunity:

Rising end-to-end visibility

With the growing data center modernization, the need for end-to-end visibility across infrastructure has become the greatest challenge for data center operators. However, the data center industry is undergoing a significant transition with the advent of supplementary and new technologies. DCIM is one such technology that is progressively adopted by data center, IT, and facility operators to gain holistic visibility into critical data center infrastructure information, including operations, configuration, and resource utilization.

Threat:

Complex implementation processes

Data center infrastructure management has evolved as a major infrastructure optimization software. Several organizations have reported successful implementation of data center infrastructure management, although the number of failed implementations cannot be overlooked. According to the survey by Uptime Institute, over 25% of respondents had an unsuccessful deployment, with one-third having no plans to pursue the DCIM technology. One of the major reasons behind the unsuccessful implementations is a substantial gap between what customers expect and data center infrastructure management providers deliver. For the data center having different functional domains, the DCIM implementation can be complex.

Covid-19 Impact

Enterprises are opting for cloud-based Data Center Infrastructure Management solutions to manage data center operations during the COVID-19 times as it allows to remotely execute day to day operations. The demand for DCIM has surged in 2020 and 2021 as it offers effective management of data center operations. Many of the enterprises across verticals have adopted the work from home model to safeguard employee well-being and maintain operational efficiency, surging the demand for cloud-based solutions. As more enterprises would turn to advance its IT infrastructure, the demand for DCIM solutions will continue to grow.

The on-premises segment is expected to be the largest during the forecast period

The on-premises segment is estimated to have a lucrative growth. On-premises data center infrastructure management systems play a vital role in organizations. This type of data center infrastructure management is based in a physical environment, and it collects information of data centers, which can be used in decision-making processes. On-premises data center infrastructure management captures data from sensors across the data center infrastructure. An on-premises data center infrastructure management solution offers consistent and secure data collection, reporting, and alerting for an individual environment. The data gives administrators information related to infrastructure availability, airflow, power consumption, temperature, humidity, and security.

The solution segment is expected to have the highest CAGR during the forecast period

The solution segment is anticipated to witness the fastest CAGR growth during the forecast period. The solution segment led the data center infrastructure management market. The Data Center Infrastructure Management (DCIM) solution helps data center operation managers to identify, locate, visualize, and manage all data center assets and plan capacity for future growth. Moreover, Data Center Infrastructure Management (DCIM) solutions also bridge information across organizational domains to maximize data center utilization. Data Center Infrastructure Management (DCIM) solutions also help data center managers achieve greater efficiency and prevent problems that lead to equipment downtime.

Region with largest share:

North America is projected to hold the largest market share during the forecast period due to the expansion of mobile broadband, growth in cloud computing, and big data analytics 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. For instance, Digital Realty manages over 145 sites across the world, and located in Chicago on the East Cermak is one of the largest data centers. 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 imperative for the users as well as the manufacturers to deploy DCIM that enables them effectively manage and run their data centers. Several companies are investing in expansion of their operations to strengthen their global footprint and enhance their market presence in the region. Moreover, multinational companies, such as Facebook, Microsoft, Apple, and Google, are investing in green data centers to power through renewable sources.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period. APAC is one of the fastest growing regions in the data center infrastructure management market and has witnessed huge investments in data center construction. The major countries, such as China and Japan, are witnessing huge investments in verticals, such as BFSI, retail, healthcare, manufacturing, telecommunications, and IT, which has brought development and economic growth in APAC countries. The spread of internet-enabled devices will continue to increase the demand for data centers in this region. This increase in development has boosted the growth of data center construction in the region, which is expected to boost the adoption of data center infrastructure management solution and services. Additionally, as a part of green initiative, the governments across the region are drafting new energy efficiency laws, ranging from carbon emission tax, efficient power usage, and others. Such regulatory requirements are driving the need for using data center infrastructure management to manage data centers.

Key players in the market

Some of the key players profiled in the Data Center Infrastructure Management Market include ABB Group, Cisco Systems, Inc., Dell Technologies, Inc., Hewlett Packard Enterprise Company, Delta Electronics, Inc., Huawei Technologies Co., Ltd, Schneider Electric SE, Siemens AG, IBM Corporation, Eaton Corporation PLC, CommScope, and Vertiv.

Key Developments:

In February 2020, Eaton plans to acquire Power Distribution Inc. (PDI), a supplier of power monitoring equipment and services, critical power distribution solutions, static switching for data centers, and industrial and commercial services. This acquisition may enable Eaton to leverage its existing power offerings and serve the data center customers better.

In October 2020, Vertiv launched two product lines for modular data centers. The Vertiv Smart Mod offers customers pre-fabricated, container-based data centers that can be configured to include the company’s power distribution and cooling equipment. The Power Module is a weatherproof container designed specifically to house UPS systems, batteries, and a thermal management kit. The new products are expected to enable customers to spend significantly lesser time on data center installation.

In March 2020, Schneider Electric extended its distribution agreement with Ingram Micro in Australia. Schneider would deliver its EcoStruxure IT Expert data center infrastructure management (DCIM) product to local resellers.

In October 2019, ABB teamed up with GIGA Data Centers following which, the former company aimed to provide complete power solutions. The latter company would make modular data center technology available to every company.

Data Center Types Covered:
• Enterprise Data Center
• Managed Data Center
• Colocation Data Center
• Cloud and Edge Data Center

Components Covered:
• Solution
• Services

Tiers Covered:
• Tier I & II
• Tier III
• Tier IV

Deployment Models Covered:
• On-premises
• Cloud

Organization Sizes Covered:
• Small and Medium-sized Enterprises (SMEs)
• Large Enterprises

Applications Covered:
• Capacity Planning
• Power Monitoring
• Environmental Monitoring
• Business intelligence (BI) and Analytics
• Automated Workflow and Change Management
• Auditing and Reporting

End Users Covered
• Banking, Financial Services and Insurance (BFSI)
• Government and Public Sector
• Information Technology (IT) and Information Technology Enabled Services (ITeS)
• Manufacturing
• Healthcare and Life Sciences
• Telecommunications
• Retail and eCommerce
• Education
• Media and Entertainment
• Energy & Manufacturing

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements