Global Data Center Blade Server Market - Segmented by Data Center Type (Tier 1, Tier 2, Tier 3, Tier 4), End-User (BFSI, Manufacturing, Energy and Utility, Healthcare), and Region - Growth, Trends, and Forecast (2018 - 2023)
The global data center blade server market was valued at USD 12.11 billion in 2017 and is expected to reach a value of USD 19.67 billion by 2023 at a CAGR of 8.29% over the forecast period of 2018–2023. The scope of the report is limited to the type of deployment offered by the major players, which includes Tier 1, Tier 2, Tier 3, Tier 4. While the end users considered in the scope of the report include BFSI, manufacturing, energy and utility, and healthcare.
A server blade is a server frame housing various electronic circuits (modular), which alleviate multiple issues brought by data centers, including server density and manageability. Each blade can be administered and operated by the administrator, which can be assigned to various end users or applications. Single or multiple server blades can be inserted or removed without distressing another running system. It mitigates the hardware cost, which is likely to attract the industry players to adapt to the technology, thereby fueling the market growth. Additionally, each server blade does not consist of distinct infrastructure and chassis, owing to which the product is relatively cheaper, as compared to other solutions.
Growth of Cloud and IoT Services
Cloud computing is one sector that has been estimated to be a significant driver of the data center colocation industry. Cloud computing has been proliferating over the past few years, owing to lower operational expenses faced by enterprises. Currently, the cloud market consists of large global companies, like Amazon Web Services, Microsoft Cloud, as well as, companies in the provider segment. Regarding infrastructure, global corporations, and third-party vendors have been identified to support their services with hyper-scale data centers and blade servers to reduce operational costs. Combining blade servers with the cloud can help reduce operational costs and increase efficiency. Cloud provider companies require private networks with high levels of bandwidth and resiliency and support from a robust data center provider.
Energy and Utilities Most Avid Adopters of Blade Servers
In the energy and utility segment, the generation of unstructured data has grown considerably, owing to the increasing operations in upstream and downstream processes. The adaption of digitization in this industry is propelling the demand for data accumulation and increase in the cost associated with power consumption, which is projected to fuel the market. The utilization of cloud computing in the energy sector is complementing, which requires data centers to enhance manageability and taking better business decisions. Thus, this is likely to boost the demand for data center blade servers. Data plays a vital role in understanding the demand and supply in the energy (wherein data centers are used for storage), which is projected to fuel the market growth over the next six years.
Europe’s High Demand for Data Centers
The electricity prices remain a cause of concern as they have been growing over the past few years. The rise was steep in 2012, where it grew by 17.35% (as compared to 2011), while in 2013, the increase was 2.61%. Energy costs are a significant part of data center operating costs, and hence, enterprises have to change to data center blade servers, which help in meeting the objective of reducing operating costs. Small businesses accounted for 99.3% of all private sector businesses at the beginning of 2016, and 99.9% were small or medium-sized (SMEs). About 53% of the economy is dominated by SME industries, which influence the market for data center blade servers (owing to their budget consciousness and the lack of core competencies in data center management).
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