|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD 4.2
Billion
|
|
CAGR
(2023-2028)
|
28.5%
|
|
Fastest
Growing Segment
|
Colocated
Data Center
|
|
Largest
Market
|
North
America
|
Market Overview
Global Converged Data
Center Infrastructure Market was valued at USD 4.2 Billion in 2022 and is
anticipated to project robust growth in the forecast period with a CAGR of 28.5% through 2028, Furthermore, the rising
popularity of digital technology platforms such as social networking and
knowledge platforms has increased demand for HI. According to an IBM
Corporation analysis published in 2020, the total average cost of a data
security breach was reported to be USD 3.86 million per breach. Personal and
business penalties for data breaches are included in the fee. With the help of
specific component applications, hyper-converged solutions are utilized to
lessen the risk of data security breaches. It also comes with a high-security
AMD processor package with security features that help to reduce security
concerns.The use of IoT in numerous industries such as automotive,
manufacturing, retail, transportation, and energy has been studied to drive the
industry. IoT is used in various industries because it delivers real-time
information, increases operational efficiency, optimizes production, and
provides other benefits that enhance the industry's efficiency while also
acting as a driving factor for the Hyper-Converged Infrastructure market.
According to G.E, the use of Industrial IoT has a 44% impact on worldwide
energy usage. As a result, the use of IoT in industries is expected to be a
driving factor in the Hyper-Converged Infrastructure market during the
projected period 2022-2027.The market is growing as a result of rising digital
transformation in data centers adopting HI solutions. Using the compute storage
network, the solutions are used for data center modernization and
consolidation. It establishes a software-defined virtualized environment that
makes scaling up and down data center capabilities easy. The solutions aid in
improving performance and lowering operational costs. Rising investment in data
center infrastructure development is likely to create market growth
opportunities. For instance, In September 2021, Techno Electric and Engineering
Company (TEECL) Power Infrastructure Company announced a USD 1 billion
investment to build modern data centers in major Indian cities. Converged Data
Center Infrastructure Market Segment Insights: Converged Data Center
Infrastructure Deployment Insights The Converged Data Center Infrastructure
Market segmentation, based on Deployment includes reference architecture,
pre-racked configuration. The pre-racked configuration segment has the biggest
market share. This is owing to the advantages of pre-racked infrastructure,
such as faster deployment, greater scalability, and lower operational expenses.
Pre-racked infrastructure also allows firms to focus on other key business
operations while quickly deploying IT infrastructure. As a result, there is a
growing demand for pre-racked infrastructure across a variety of businesses. Converged
Data Center Infrastructure Component Insights The Converged Data Center
Infrastructure Market segmentation, based on Component, includes computational
devices, storage devices, networking devices. The converged data center
infrastructure market is dominated by networking devices segment. This is due
to the growing demand for high-speed data transport and the requirement for
improved network connectivity across a wide range of businesses. Switches,
routers, and gateways assist enterprises in managing and optimizing their
network infrastructure, resulting in greater performance and less downtime.
Key Market Drivers
As a result of the
increased pollution levels caused by diesel generators, many countries in the
world are banning the use of diesel generators. Diesel generators are most
commonly used for power backup in major industrial applications. During diesel
burning, diesel generators emit carbon dioxide, carbon monoxide, nitrogen
oxides (NOx), and particulates. In a diesel generator, for example, a liter of
fuel produces 0.73 kg of pure carbon and 2.6 kg of carbon dioxide.
Converged
Data Center Infrastructure Systems for Short-Term Blackouts To Reduce Air
Pollution
As a result, companies are
using Converged Data Center Infrastructure systems for short-term blackouts to
reduce air pollution in many industrial applications. Lead acid or lithium-ion
batteries are often used to construct Converged Data Center Infrastructure systems.
It is also important to note that generators do not provide an instant power
supply, as they must be manually started. Computers and electronic equipment
require instant backup power that isn't provided by generators.
The industrial revolution,
known as Industry 4.0, has gained significant traction in the last couple of
years. By mixing the Internet of Things (IoT), cloud computing, analytics,
artificial intelligence, and machine learning into manufacturing facilities and
operations, new technologies are revolutionizing manufacturing processes. As
these operations are critical, many companies use an Converged Data Center
Infrastructure to prevent data loss and production line downtime. They use an Converged
Data Center Infrastructure to stabilize the power and streamline production
during a power outage. Due to the factors mentioned above, the Converged Data
Center Infrastructure (UPS) market is expected to grow the fastest during the
forecast period.
As manufacturing
automation has evolved with computer-based control systems, programming logic
controllers, and process control applications, UPS systems are increasingly
necessary for industrial facilities. In addition to providing backup power
during a power outage, UPS systems protect equipment from power glitches such
as power sags, surges, under voltages, overvoltages, line noise, frequency
variations, switching transients, and harmonic distortions. Therefore, such an
advantage related to the UPS systems has enhanced the Converged Data Center
Infrastructure (UPS) market CAGR globally in recent years.
A number of technological
advances in UPS battery systems, like lithium-ion (Li-ion) batteries that can
operate at high temperatures, are expected to create immense opportunities for
traditional data centers. UPS systems can also serve as backup systems when the
electric grid fails, making them an excellent growth opportunity in the coming
years, another factor driving the growth of the Converged Data Center
Infrastructure (UPS) market revenue
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Key Market Challenges
Rapid
Technological Advancements
One of the foremost
challenges in the converged data center infrastructure market is the rapid pace
of technological advancements. As technology evolves at an unprecedented rate,
businesses must constantly adapt to remain competitive. Converged
infrastructure solutions require consistent updates and improvements to keep up
with these changes. Outdated infrastructure can become a bottleneck, leading to
inefficiencies and security vulnerabilities. To address this challenge, vendors
in this market need to invest heavily in research and development to ensure
their solutions remain cutting-edge and compatible with the latest
technologies.
Integration
Complexity
While converged data
center infrastructure promises simplicity and efficiency, integrating these
systems into existing IT environments can be complex. Legacy systems, different
vendor solutions, and custom applications can all present integration challenges.
Ensuring that converged infrastructure works seamlessly with existing
technology investments can be a significant undertaking. This challenge calls
for expertise in system integration and comprehensive planning to minimize
disruptions and downtime during the transition.
Scalability
and Flexibility
As businesses grow and
their IT requirements change, they need scalable and flexible solutions.
Converged infrastructure should be able to accommodate expanding workloads and
applications. Achieving this scalability and flexibility while maintaining optimal
performance is not always straightforward. Vendors must design converged
infrastructure solutions that can be easily expanded, allowing businesses to
grow without overhauling their entire data center architecture. This requires
careful planning and future-proofing to ensure the infrastructure can adapt to
evolving needs.
Security
Concerns
Security is a paramount
concern for any data center, and converged infrastructure is no exception. As
data becomes increasingly valuable and cyber threats more sophisticated, the
market faces the challenge of ensuring the security of these integrated systems.
A single vulnerability in a converged infrastructure solution could expose an
organization to significant risks. Security protocols, encryption, and access
controls need to be robustly integrated into these systems, and vendors must
provide regular security updates to protect against emerging threats.
Converged infrastructure
often leads to vendor lock-in, where businesses become heavily dependent on a
single vendor for their integrated solution. This can limit flexibility and
increase costs as organizations are tied to specific hardware and software.
Overcoming this challenge requires choosing vendors carefully and ensuring that
the benefits of convergence outweigh the potential disadvantages of vendor
lock-in. It also calls for standardization efforts to promote interoperability
among different vendors' converged infrastructure solutions.
Cost
Management
While converged
infrastructure solutions can improve efficiency, they can also be costly to
implement and maintain. Organizations may face high initial investment costs,
and ongoing operational expenses can be substantial. Proper cost management is
essential to ensure that the benefits of convergence are not outweighed by
financial constraints. This challenge involves identifying and reducing
unnecessary costs, optimizing resource allocation, and exploring cost-effective
solutions such as cloud-based infrastructure for certain workloads.
Skill
Shortage
Managing converged data
center infrastructure requires specialized skills. IT teams need to be
well-versed in the design, deployment, and maintenance of these systems.
Finding and retaining skilled personnel can be challenging, especially in a
competitive job market. Training and development initiatives are crucial to
address this challenge, as organizations need a workforce that can effectively
manage converged infrastructure and address any issues that may arise.
Performance
Optimization
Converged infrastructure
is designed to provide high performance, but optimizing performance for
specific workloads and applications can be challenging. Different workloads
have varying requirements, and organizations need to fine-tune their converged
infrastructure to meet these needs. Performance optimization involves
continuous monitoring, analysis, and adjustment to ensure that the system
operates at peak efficiency. This can be a resource-intensive and
time-consuming process.
Data Management: Converged
infrastructure solutions generate vast amounts of data. Managing and securing
this data while ensuring compliance with data protection regulations is a
significant challenge. Proper data management and data governance practices are
crucial. Organizations must also consider data backup, disaster recovery, and
data migration strategies, which can be complex in converged environments.
Environmental
Concerns
With the growing focus on
sustainability and environmental responsibility, data centers, including
converged infrastructure, face the challenge of minimizing their carbon
footprint. These facilities consume significant energy, and cooling
requirements add to the environmental impact. Addressing this challenge
involves adopting energy-efficient hardware, optimizing cooling systems, and
exploring renewable energy sources to power data centers.
In conclusion, the global
converged data center infrastructure market is marked by numerous challenges
that businesses and technology providers must navigate. From rapid
technological advancements and integration complexity to scalability, security,
and cost management, addressing these challenges is essential to leverage the
benefits of converged infrastructure effectively. While these challenges are
significant, they also present opportunities for innovation and growth in the
market. Vendors and organizations that can successfully overcome these
obstacles will be well-positioned to thrive in the evolving landscape of data
center technology.
Key Market Trends
The Global Converged Data
Center Infrastructure (UPS) market has been witnessing significant growth and
transformation over the past several years. Several trends and factors have
been shaping the UPS market on a global scale. Here are some of the prominent
trends in the global UPS market:
Rising
Demand for Data Centers
With the growth of cloud
computing, IoT, and digital services, data centers have become a critical
component of modern infrastructure. This has led to a substantial increase in
the demand for UPS systems to ensure uninterrupted power supply for data centers.
Increasing Energy
Efficiency: Energy efficiency is a top priority for businesses and
organizations to reduce operational costs and environmental impact.
Manufacturers are developing UPS systems with higher efficiency ratings,
advanced battery management, and energy-saving features.
Growth of Modular UPS
Systems: Modular UPS systems are gaining popularity due to their scalability
and flexibility. They allow businesses to expand their power protection systems
as needed, reducing upfront costs and making it easier to adapt to changing
power requirements. Lithium-ion batteries are increasingly being adopted in UPS
systems due to their longer lifespan, higher energy density, and reduced
maintenance requirements compared to traditional lead-acid batteries.
Rise in
Edge Computing
Edge computing, which
involves processing data closer to the source (e.g., IoT devices), is gaining
traction. This trend demands UPS solutions at the edge, contributing to market
growth.
Focus on Sustainability:
Environmental concerns are pushing companies to adopt sustainable practices,
including the use of energy-efficient and eco-friendly UPS systems.
Manufacturers are developing UPS units that can integrate with renewable energy
sources.
Digitalization and Remote
Monitoring: The integration of UPS systems with digital platforms and remote
monitoring capabilities is becoming increasingly important. This allows for
real-time monitoring, predictive maintenance, and swift issue resolution.
Increasing Adoption of
Three-Phase UPS: Three-phase UPS systems are in high demand, especially in
industries with heavy power requirements, such as manufacturing, healthcare,
and data centers. They provide better power protection and distribution.
E-commerce and Retail
Sector Demand: The growth of e-commerce and the increasing reliance on online
retail have driven the need for UPS systems to ensure continuous operation
during power outages, preventing financial losses and maintaining customer satisfaction.
The COVID-19 pandemic highlighted the vulnerability of global supply chains.
The UPS market has experienced disruptions in the supply of components, leading
to delays in production and delivery.
Evolving
Regulations and Standards
Governments and industry
bodies are continually updating regulations and standards related to power
quality and reliability. Manufacturers must stay abreast of these changes to
ensure compliance.
Resilience and Disaster
Recovery: Businesses are increasingly investing in UPS systems to ensure
business continuity and disaster recovery capabilities. UPS solutions play a
vital role in protecting critical infrastructure during natural disasters or
power grid failures.
Electrification of
Transportation: The shift toward electric vehicles and charging infrastructure
requires UPS systems to ensure uninterrupted charging, particularly in public
charging stations.
Hybrid
and Multi-Mode UPS
Hybrid and multi-mode UPS
systems offer versatility by combining the benefits of online and
line-interactive UPS. These systems provide excellent protection and
efficiency, making them attractive options for various applications.
Increased Emphasis on
Cybersecurity: As UPS systems become more integrated with digital
infrastructure, there is a growing focus on cybersecurity. Ensuring the
protection of UPS systems from cyberattacks is crucial for safeguarding
critical infrastructure. The integration of UPS systems with smart grids is on
the horizon, enabling dynamic load management, demand response, and better
alignment with renewable energy sources.
Demand
for Long-Lasting Batteries
Manufacturers are
investing in the development of UPS systems with long-lasting batteries, which
are crucial for critical applications like healthcare and manufacturing.
These trends collectively
indicate the growing importance of UPS systems in various industries and
applications. Manufacturers need to adapt to these trends by embracing
innovation, focusing on energy efficiency, and offering sustainable solutions
to meet the evolving power protection needs of businesses and organizations
worldwide. As technology continues to advance, the UPS market will likely see
further developments in line with these trends.
Segmental Insights
Facility Insights
The global Converged Data Centre Infrastructure Market
is divided into two facilities: on-premise and colocated data centres. The
segment of cocolated data centres is the fastest expanding in the converged
data centre infrastructure market. This is owing to the advantages of cocolated
data centres, which include increased scalability, lower energy consumption,
and better performance. Cocolated data centres also assist businesses in
lowering their carbon footprint and complying with environmental requirements.
Component Insights
The Converged Data Center Infrastructure Market
segmentation, based on Component, includes computational devices, storage
devices, networking devices. The converged data centre infrastructure market is
dominated by networking devices segment. This is due to the growing demand for
high-speed data transport and the requirement for improved network connectivity
across a wide range of businesses. Switches, routers, and gateways assist
enterprises in managing and optimizing their network infrastructure, resulting
in greater performance and less downtime.
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Regional Insights
The North American
Converged Data Center Infrastructure Market area will dominate this market,
Because of the rising deployment of Industry 4.0 in the manufacturing sector in
recent years. Furthermore, the presence of a high number of data centres in
these locations is contributing to the growth of the Converged Data Centre
Infrastructure market by reducing latency.
Europe Converged Data
Center Infrastructure Market accounts for the second-largest market share
because of increased mobile data usage, expanding BYOD regulations, and other
factors. Further, the German Converged Data Center Infrastructure Market held
the largest market share, and the UK Converged Data Center Infrastructure
Market was the fastest growing market in the European regionThe Asia-Pacific
Converged Data Center Infrastructure Market is expected to grow at the fastest
CAGR from 2023 to 2032. This is due to increasing government investments and
initiatives for smart city development. Moreover, China’s Converged Data Center
Infrastructure Market held the largest market share, and the Indian Converged
Data Center Infrastructure Market was the fastest growing market in the
Asia-Pacific region.
Recent Developments
- February 2022, the green
panel decided to adopt Dell EMC VxRailHCI to update its data center and
optimize manufacturing and business processes. The green panel planned to
update its IT infrastructure and introduce new technologies that would enable
customer-centric product creation. The woodworking titan picked Dell EMC
VxRailHCI over a public cloud solution to enable mission-critical applications.
- April 2022,Equinix and
Dell have expanded their collaboration to provide hyper-converged data center
solutions. Expansion of its Equinix Metal bare metal appliance line. This
includes the launch of numerous new products, including Dell PowerStore on Equinix
Metal, Dell VxRail on Equinix Metal, and Dell EMC PowerProtectDDVE on Equinix
Metal.
Key Market Players
- Emerson
Electric Co.
- ABB Ltd
- Schneider Electric SE
- Riello Elettronica SpA
- EATON Corporation PLC
- Toshiba Corporation
- Xiamen Kehua Hengsheng Co. Ltd.
|
By Deployment
|
By
Component
|
By
Facility
|
By
Region
|
- Reference
Architecture
- Pre-Racked
Configuration
|
- Computational
Devices
- Storage
Devices
- Networking
Devices
|
- On-Premise,
Colocated Data Center
|
- North
America
- Europe
- South America
- Middle
East & Africa
- Asia
Pacific
|
Report
Scope:
In this report, the Global
Converged Data Center Infrastructure Market has been segmented into the following
categories, in addition to the industry trends which have also been detailed
below:
- Global Converged Data Center
Infrastructure Market, By Deployment:
o Reference
Architecture
o
Pre-Racked Configuration
- Global Converged Data Center Infrastructure Market, By Component:
o Computational
Devices
o Storage
Devices
o
Networking Devices
- Global Converged Data Center Infrastructure Market, By Facility:
o
On-Premise
o
Colocated Data Center
- Global Converged Data Center Infrastructure Market, By
Region:
o North
America
§ United
States
§ Canada
§ Mexico
o Asia-Pacific
§ China
§ India
§ Japan
§ South
Korea
§ Indonesia
o Europe
§ Germany
§ United
Kingdom
§ France
§ Russia
§ Spain
o South America
§ Brazil
§ Argentina
o Middle
East & Africa
§ Saudi
Arabia
§ South
Africa
§ Egypt
§ UAE
§ Israel
Competitive
Landscape
Company
Profiles: Detailed analysis of the major companies presents in
the Global Converged Data Center Infrastructure Market.
Available
Customizations:
Global Converged Data
Center Infrastructure Market report with the given market data, Tech Sci
Research offers customizations according to a company's specific needs. The following
customization options are available for the report:
Company
Information
- Detailed
analysis and profiling of additional market players (up to five).
Global Converged
Data Center Infrastructure Market is an upcoming report to be released soon. If
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release, please contact us at [email protected]