DC Powered Servers Market

Historical DC Powered Sales and Future Outlook

With trailblazing technologies dramatically altering the global virtual ecosystem, the DC powered servers landscape has been experiencing aggrandizing sales and enhanced revenue shares. Until 2019, the market experienced a historical CAGR of over 5%, reaching US$ 1.3 Bn in value.

As business volumes expand, corporate entities are faced with numerous data storage and assimilation challenges. For example, the United States alone generates over 3 million gigabytes of data each minute. Naturally, reliance on big data analytics is surging, leading to an increasing demand for DC powered servers.

Moreover, high reliance on cloud platforms and virtualization is prompting server providers to compartmentalize multiple users on a single platform. Key industries ranging from information technology and data centers to government entities are likely to exploit DC powered servers.

Growth was especially strong during 2020, with organizations exhaustively assimilating data across various platforms in the wake of the COVID-19 pandemic. Thus, the importance of DC powered servers has been underscored significantly, with FMI projecting the market to remain bullish, registering a staggering 8.2% CAGR through 2030.

How 5G Infrastructure Deployment is Disrupting DC Powered Market Dynamics?

Burgeoning demand for lighting fast connectivity has prompted adoption of 5G networks by prominent organizations. While presently operating on a low-spectrum range, maturing technologies and infrastructure are paving way for its escalation across key application areas. This growing adoption is expected to generate fresh revenue ecosystems for DC powered servers.

Studies suggest that nearly two out of five internet users are likely to incorporate 5G networks until 2024, with over a billion mobile subscriptions. 5G networks are poised to handle nearly a quarter of all mobile traffic data. Unlike the existing 4G networks, 5G infrastructure is touted to support millions of devices per square mile.

Significant developments are occurring in this regard. In January 2021, the Ooredo Group and Ericsson entered a 5-year strategic 5G agreement wherein the companies have agreed to make significant breakthroughs by launching new functionalities. The deal includes the Ericsson Radio System, Ericsson Cloud Core, Cloud Infrastructure, Cloud Communication and microwave solutions.

Heightened Adoption of Cloud Computing to Provide Leverage

While highly popular in recent years, the scope of cloud computing has witnessed a credible upswing since the COVID-19 pandemic’s outbreak, largely underpinning remote workforces, the global economy and world supply chains. This domain is likely to remain an attractive investment area for ensuring increased scalability in the future.

Data suggests that the global cloud computing market is expanding at over two-fifth of the global virtual landscape, with over three out of five data analytics software being cloud-based. The deployment of IBM’s Cloud for Financial Services is just one among innumerable instances of effective cloud integration in data management.

Unveiled in 2020, the platform is designed to facilitate a transparent public cloud ecosystem with enhanced security, compliance and resiliency features which all financial institutions require. This is expected to enable numerous innovations and deliver highly personalized customer experiences.

Extensive Data Center Management: A Key Challenge for DC Powered Servers Adoption

As demand for new on demand technology services increase, the costs associated with deploying the same continue to skyrocket. To effectively manage such aggrandizing costs, complicated deployments and uptime, data managers require access to information which may not be readily available.

Managing server information often requires data centers to maintain spreadsheets, which is a painstaking task. Furthermore, such information must be periodically updated. As a result, these centers exhaustively utilize DC powered servers of varying power consumption ranges.

These DC powered servers consume excessive amounts of electricity. Between 2000 and 2005, electricity consumption by servers represented almost a twofold increase, growing from 12 billion kWh to 23 billion kWh. By 2008, individual server power consumption averaged up to 250 watts. These trends are likely to hinder adoption of DC powered servers in the future.

Country-wise Insights

Why Consolidation in U.S. is Key for DC Powered Server Vendors?

Until 2019, DC powered servers sales across the United States were limited, registering annual growth of just 2.4%. However, prospects are likely to widen, experiencing a CAGR of 4.2% through 2030. Extensive adoption of servers attributed to increasing data processing volumes is likely to drive demand.

Estimates reveal that servers shipment in U.S. increased by 3% due to increasing popularity of moving localized data center activity to colocation or cloud facilities. Consequently, there has been an increase in the number of colocation service providers across the region.

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The top five prominent service providers include, CenturyLink, Digital Reality, Verizon, Equinix and AT&T respectively. Including these aforementioned service providers, a total of nearly 1800 colocation service providers are present across the landscape.  

Based on current trend estimates, U.S. data centers are projected to consume approximately 73 billion kWh in 2020. Adoption of DC DC powered servers has increased for hyper scale data centers where servers are often configured for maximum productivity and operated at high utilization rates.

How is U.K. Emerging as a Potential Hotspot for DC Powered Server Sales?

The U.K. DC powered servers market is expected to be the most lucrative across Europe, expanding at a value CAGR of 9% throughout the forecast period. Increasing scramble by data centers and business entities in the wake of growing security threats is driving the market on an impressive trajectory.

The Data Protection Act of 2018 is a landmark achievement in the U.K’s endeavor to implement a pan-national general data protection regulation. The Act offers a strong legal safeguard against possible personal and classified data breach and provides for fair, lawful and transparent use of such information for limited purposes.

Consequently, business organizations are increasingly adopting colocation services, such as Sungard which offers private colocation, network services and cloud connectivity solutions. In October 2020, it partnered with global Network as a Service (NaaS) leader Megaport which would enable the former to expand its Software Defined Cloud Interconnection (SDCI) capabilities.

Likewise, companies also effectively leverage IBM’s Hybrid Data Management AI-enabled solutions, permitting them to gather data based on any type, source and structure to make it easily accessible across multiple vendors, workloads and deployments.

Opportunities abound in German Telecom Sector

The telecommunications industry across Germany is highly developed. According to Deutsche Telekom, developments are especially extensive across the high-speed broadband domain. In 2019, fixed network data traffic expanded by three-tenths worldwide, out of which Germany accounted for a significant share.

In 2020, the number of broadband connections was expected to grow at over 2%, reaching approximately 37 million connections. Most of this growth is facilitated by companies possessing robust internet infrastructure, which has facilitated an increase in deployment of high-bandwidth lines. Therefore, investments in DC powered servers is likely to aggrandize across the German market.

As per Future Market Insights’ projections, an annual increase of above 7% is expected across the German DC powered servers market for the next two years, generating over 20% of the revenue share across the aforementioned period.

Why is India a Promising Market for DC Powered Servers?

India is expected to witness astounding growth in the DC powered servers market, registering a value CAGR exceeding 16% across the 2020-2030 assessment period. This growth is majorly credited to an ever mushrooming information and communications technology segment in recent years.

The India Brand Equity Foundation advocates that India is a leading sourcing destination in the world. During FY 2019-20, the country yielded US$ 200-250 billion, contributing to over 50% market revenue. Also, in FY20, the IT-BPM industry’s revenue was valued at US$ 191 billion.

Going by these trends, key powered server providers have found lucrative revenue pools, prompting them to increase their foray into the Indian market. HPE is a prominent global level market player across the country, manufacturing the HPE Apollo 80 System and the HPE Superdome Flex 280 Server, especially suitable for medium sized enterprises.

Category-wise Insights

Why are DC-powered Blade Servers acquiring Momentum?

By server type, DC-powered blade servers are expected to register strong yearly expansion, expanding at nearly 10% annual growth rate by 2021. Reduced power consumption, easy swapping of defective blades and enhanced processing power are some key growth catalyzers. Moreover, they only rely on a single chassis to provide power.

However, DC-powered rackmount servers are expected to generate the highest revenue, capturing over two-fifths of the total market share by 2021-end. Businesses are increasingly leveraging these servers due to perceived benefits regarding security, access and organization and airflow. The segment shall reach nearly US$ 700 Mn in the current year.

48V DC powered servers to Experience Impressive Growth

In terms of power rating, the 48V DC-DC powered servers are slated to experience double-digit Y-o-Y growth exceeding 10% until 2029, accounting for over a quarter of the revenue share. High data center energy efficiency is prompting enterprises to switch over to 48V servers. Additionally, it uses zero-voltage switching and current switching, offering reduced noise emission.

At the same time, 12V DC-powered serves are likely to retain lucrativeness, accounting for over 40% revenue for the next half-a-decade. Research indicates that utilizing 12V servers enhances efficacies by around 7 percentage points compared to conventional ones. Moreover, the standard prescribed rating has always been 12V, leading to its enhanced uptake.

Why are Data Centers Emerging as the Primary Application Area?

Over the years, data centers have emerged as important storehouses for information assimilation and storage. Featuring state-of-the-art high density servers and revolutionary cooling systems, data centers are fast attracting the attention of key service providers, causing it to expand at a historical CAGR of nearly 5%.

Amongst all data services, the colocation data segment is expected to garner key investments as they allow small and medium sized enterprises to effectively manage their data assimilation projects. Besides data centers, IT enterprises are expected to generate equally high opportunities as they increasingly seek to incorporate 5G connectivity solutions.

Competition Analysis

The DC powered servers landscape is dominated by the below mentioned prominent players*:

• Dell Technologies
• IBM Corporation
• HPE
• Intel Corporation
• Lenovo
• Vertiv
• Perle
• ABMX Servers
• Island Computers US Corp.
• Cepoint Networks LLC.

*This list is indicative- full details about DC powered servers market players is available upon request.

A combination of strategies such as capacity expansion, strategic collaborations, acquisitions, product launches and strengthening of regional and global level distribution networks constitute the aforementioned players’ key expansion tactics, providing market leaders with a significant competitive edge.

In January 2021, IBM Corporation acquired 7Summits, thereby extending its Salesforce services portfolio and experience design capabilities. This acquisition has enhanced IBM’s hybrid cloud and AI strategy domains respectively.

With respect to product offerings, Dell Technologies offers a broad range of DC powered servers. One of its recent offerings includes the EMC PowerEdge Rack Servers consisting of three ranges: R840, R940 and R940xa respectively. These servers are specifically designed for four socket rack servers.

As part of its commitment to continually incorporate novel offerings, Lenovo has unveiled its new Innovation Vision 2021 with the objective of redefining meaningful technological innovations to help improve workflow, acting as a catalyst to introduce meaningful breakthroughs. This initiative is likely to boost prospects for powered server sales.

DC powered servers Market- Report Scope

Key questions answered in the report

• What is the outlook on DC powered servers demand?

  The global DC powered servers market is poised to expand at a CAGR of 8.2% from 2020 to 2030. Growth is primarily underpinned by deepening penetration of 5G technology infrastructure and cloud computing platforms for ensuring efficacy of business operations, which consume a lot of power

• Which are the prominent DC powered server vendors?

  Prominent DC powered servers vendors profiled in FMI’s report are Dell Technologies, IBM Corporation, HPE, Intel Corporation, Lenovo, Vertiv and Perle to name a few

• Which is the most promising DC powered servers market?

  India is slated to account for the majority of the DC powered servers demand, owing to a flourishing IT sector. Over the years, Indian IT expenditure has registered an upswing, attributed to the presence of a technologically literate population

• Which is the dominant powered server type?

  According to Future Market Insights’ estimates, the DC-powered blade server type is anticipated to garner significant expansion opportunities due to reduced power consumption, easy to clean process and high processing power

Enquiry before Buying

• Is the DC powered servers research conducted by Future Market Insights?

  Yes, the DC powered servers report has been compiled by expert analysts of Future Market Insights through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to the research analyst.

• What research methodology is followed by FMI?

  FMI follows a methodology that encompasses the demand side assessment of the market, and triangulates the same through a supply side analysis. This methodology is based on use of standard market structure, methods and definitions.

• Who are the respondents for primary research?

  FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product vendors, industry experts. For a full list of primary respondents, please reach out to us.

• What are the sources of secondary research?

  FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request. 

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Key Segments

Type

• DC-Powered Rackmount Servers
• DC-Powered Tower Servers
• DC-Powered Blade Servers

Power Rating

• 12V DC Power
• 24V DC Power
• 48V DC Power

Application

• Telecom
• Data Centers
• IT Enterprises
• Government
• Energy & Utilities
• Others

Region

• North America (U.S & Canada)
• Latin America (Brazil, Mexico & Rest of Latin America)
• Europe (Germany, Italy, France, U.K, Spain, BENELUX, Russia & Rest of Europe)
• East Asia (China, Japan & South Korea)
• South Asia & Pacific (India, Thailand, Indonesia, Malaysia, Australia & New Zealand and Rest of South Asia & Pacific)
• Middle East & Africa (GCC, Turkey, Northern Africa, South Africa & Rest of MEA)