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Sep 7, 2020 12:00 PM ET

Data Centre Blade Server Market Size Forecast to Reach $10.2 Billion by 2025

iCrowd Newswire - Sep 7, 2020

The Global market for data centre blade server is forecast to reach $10.2 billion by 2025, growing at a CAGR of 8.6% from 2020 to 2025. The market growth is attributed to the factors such as growing data centres, technological developments, growing expenditure through regulated cloud providers and colocation networks and others. Moreover, rising adoption of IOT devices, edge computing and others boosts the Data Center Blade Server Market growth.

By Service Type- Segment Analysis

Installation & Support Services segment held the highest market share of data centre blade server in 2019. Moreover, it is anticipated to witness the significant market growth during the forecast period 2020-2025. The market growth is due to Installation & Support Services being extensively used as a replacement for rack servers. Blade servers are also beneficiary to users of many primary computer innovations. This ranges from enhanced processor densities in single-chip multicore semiconductors to cluster processing strategies. In addition to it, 10Gb Ethernet deployments, as well as being directly related to developments in SAN and NAS disk devices, network management applications and virtualization technologies are also benefited. The capacity of blade servers to dramatically increase the quantity and reliability of storage, memory and I / O services in a limited physical environment is a blessing for data centre administrators who have to satisfy ever-increasing customer demand for server flexibility and have generated a modern range of technical solutions for cloud resource management as well as for cloud and mobile virtualization applications. Furthermore, rising density of blade server-based data centres has generated a new range of power and cooling concerns for modern data centres, which in effect force technology suppliers to build new energy storage and optimization technologies and solutions.

By End User Type- Segment Analysis

Data centre blade server market is segmented into IT & telecom, media & entertainment, public sector, retail, manufacturing, healthcare, and others on the basis of end user type. IT & Telecomm segment is anticipated to witness the significant market growth during the forecast period 2020-2025. The market growth is due to a high demand for modernized IT infrastructure. Moreover, Blade servers provide a systematic framework to install several processors, memory, and I / O services by positioning certain resources on plug-in boards that slide into a typical frame. Through sharing common resources such as power, storage and I / O through multiple processors they reduce costs over independent server systems. The need for blade servers has soared on the server market. This is due to IT departments being suitable platforms to maximize storage capacity. Additionally, to achieve better advantage over the installation, provisioning and maintenance of massive server farms blade server market flourishes. The combination of lower prices, more effective usage of costly data centre capacity, streamlined tens to hundreds of server’s management and better efficiency has rendered blade servers irresistible.

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Geography – Segment Analysis

North America region held the highest market share and is anticipated to have the significant market growth during the forecast period 2020-2025. The market growth is owing to growing digitization, industrialisation, technological developments, growing data centres and others. Moreover growing IT & Telecom segment is dominating the data centre blade server market. This is due to the increasing digitalisation and introduction of technologies such as artificial intelligence, big data, cloud and others in this field. Such developments pose a high challenge to data storage and availability. Companies are advocating for better data storage, networking and IT infrastructure to effectively cater for demand. In February 2019, the U.S. government launched the Artificial Intelligence Initiative to accelerate AI initiatives in research and growth, expand exposure to government statistics and frameworks for the study, and train staff to respond to the AI age. In March 2019, Cyxtera Technologies extended its data centre operations in Silicon Valley, Houston, Atlanta, New York City and Toronto, getting a gross business size of more than 2.9 million sq. Ho, Foot. Such expansion and government initiatives leverages a positive impact on the market growth.

Drivers – Data centre blade server market

Growing demand for efficient and cost-effective data centres

Rising number of data centres due to growing computing density, business optimization needs, virtualization and others adds up to the market growth. Moreover, the flexibility, modularity, and ease of upgrading are some other factors that tends to boost the market growth.

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Challenges – Data centre blade server market

High initial investment

High initial investment for the purchase of blade server unit hinders the market growth. The costs of installing advanced devices may be very large for limited quantities. Thus cost factor plays matters a lot for the market growth.

Market Landscape

Partnerships and acquisitions along with product launches are the key strategies adopted by the players in the data centre blade server market. As of 2019, the market for data centre blade server market is consolidated with the top players including Hewlett-Packard, Lenovo, Cisco Systems, Dell, IBM, Oracle, SGI, and Fujitsu, Hitachi limited and among others.

Acquisitions/Technology Launches/Partnerships

In March 2019, NVIDIA RTX Server Lineup expands to meet growing demand for data centre and cloud graphics applications.

In June 2018, Nortek Air Solutions entered into partnership with Facebook to introduce cooling technologies that are intended to increase the energy and water performance of data centres.

In March 2017, HP entered into partnership with Mesosphere and developed new SKUs that combine the infrastructure of HPE BladeSystem, HPE 3PAR StoreServ 8200 and HPE FlexFabric 10 GB SAN Switches. The entire system includes four HPE Proliant blade servers, three agent nodes, and one meso node.

Key Takeaways

Users may attach or detach single or several server blades without distressing any other device on operation. This benefit draws vendors in this sector to respond to the technology, thereby accelerating market development. Moreover, each server blade does not comprise of separate networks and frame, as a consequence of which the software is comparatively cheaper than other solutions.

Tier 3 data centres is projected to report the largest market share over the 2020-2025 projection era owing to its large scale deployment. However, this increase can be due to characteristics such as cost-efficiency for most companies, and fewer downtime relative to other forms of data centres.

Related Reports :

A. Data Center Rack Market

B. Data Center Market

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