A study undertaken by IMS Research forecasts that power and cooling products supporting data center revenue will cross more than $15 billion by 2014. Income was about $13 billion in 2011.
The IMS Research had quantified the market for cooling products, uninterruptible power supplies (UPS), racks and enclosures, floor and cabinet-level power distribution for its study. UPS emerged as the largest market worth more than $8 billion in year 2011.
According to Jason dePreaux, an associate director with IMS Research, growth in the data center infrastructure market is a balance between opposing forces. Mobile data, electronic health records and richer internet connectivity drive data processing and storage needs, which in turn require more data centers.
At the same time, new server generations offer greater performance per watt, which somewhat mitigates the need for additional critical infrastructure.
Jason dePreaux believes economic conditions often play the role of tiebreaker.
Jason added that the cloudy economic picture severely dampens companies' willingness to spend on capital intensive projects like data centers.
The products that improve efficiency in data centers have the potential to grow highest. Intelligent hardware demands higher prices with which the dumb ones that haven’t kept pace. The need to closely monitor electricity use has been reshaping the dynamics of the market. Cooling equipment is evolving to cope with high-density computing environments of today.
Enclosures are being designed better to facilitate increased airflow and to accommodate power cabling efficiently.
The study by IMS Research reported that three vendors have been able to consolidate their positions in the market via acquisition. Emerson (News - Alert), Schneider Electric and Eaton held about 47 percent of the total data center infrastructure market in 2011.
The big three have each made multiple acquisitions to enhance product portfolios and extend geographic reach. Beyond this, according to dePreaux, are literally hundreds of vendors that have carved out smaller niches around the world.
IMS Research offers bespoke client research, syndicated marker research and consultancy services to the global electronics industry. It assists its clients in understanding markets better by providing necessary insight so that they are able to render better strategies.
Edited by Braden Becker