Market Trends of Data Center Blade Server Industry
This section covers the major market trends shaping the Data Center Blade Server Market according to our research experts:
Healthcare Segment is Expected to Witness a Significant Growth
- Digitization of consumer health records in the form of electronic medical records (EMR) contributes to data accumulation. The latest innovations in medical equipment and modernization of legacy operating systems, such as personnel management, patient response systems improvement, etc., generate a multitude of data, further necessitating the need for data centers. This need for data centers, in turn, drives the demand for data center cooling.
- In the coming future, the evolution of healthcare will focus on the reengineering of clinical care and operations around digital health and the pervasive, real-time use of data and advanced analytics to achieve these goals. Such achievements would require a large amount of data to be stored, which would drive the need for data center blade servers over the forecast period.
- Telemedicine is increasing in usage owing to various advantages, such as consumers from any region being able to gain access to the required doctor. It is an efficient method, as both money and time are saved, owing to the change in the typically scheduled visits, thereby generating a lot of data and emphasizing the need for data centers.
Moreover, the government across various regions is taking initiatives to support the growth of data centers in healthcare. For instance, in November 2022, the Indian government announced the launch of a national repository for life science data. The Indian Biological Data Center (IBDC) is situated at the Regional Centre for Biotechnology in Faridabad. The IBDC has a four-petabyte data storage capacity and houses the Brahm high-performance computing facility. It also runs an online dashboard that provides customized access, data submission, data analysis services, and real-time SARS-CoV-2 variant monitoring.
North America to Hold a Largest Share
- The region is seeing a shift away from individual device and system storage and toward the core cloud and network edge.According to a survey by Intel Security, the number of companies adopting hybrid cloud services alone has risen by three times the previous level. Cloud providers have been increasing security and enabling better and more robust systems in organizations, which can be highly beneficial.
- Also, companies in the area are putting a lot of money into AI infrastructure, which means that the huge amounts of data being collected in real time need to be processed right away.
- According to CBRE, Northern Virginia remained the world's largest data center market and added 185.1 MW of new supply in the second half of 2021. It is building 239 MW of wholesale colocation space, of which 100 MW has already been leased.
- Moreover, in January 2023, Amazon announced its plan to invest USD 35 billion over the next two decades to expand its data center business across Virginia. If approved by Virginia lawmakers, the company would receive up to USD 140 million in economic incentives from the state and as many as 15 years of additional tax breaks for equipment and software.
- In January 2023, ManageEngine, the enterprise IT management division of Zoho Corporation, announced the launch of two new Canadian data centers in Toronto and Montreal, offering enhanced data security and privacy to regional customers. Owing to the increased privacy regulations and performance requirements, large enterprises in Canada, including those in the government, banking, and financial services sectors, are placing an increased emphasis on localized data storage and processing.
During the forecast period, companies and governments in the region are expected to keep working on these kinds of projects and make large investments. This is expected to increase the demand for data center blade servers in the region.
