Green Data Center Market Is Expected To RegIster Lucrative Growth By 2022

Posted by Harshad Borde on January 29th, 2020

Small and medium enterprises have mushroomed across developed and emerging economies in the past couple of decades and they all are concentrating on crunching data in order to run their processes smoothly as well as detect opportunities for efficiency enhancements. Consequently, the demand for data centers has multiplied exponentially in the recent past but with that, the concerns regarding humongous amount of energy required by them and the need for proper disposing of the equipment have incremented. If understood as a country, data centers would be the fifth largest consumer of energy in the world!

Global Green Data Center Market worth US1.4 billion by 2022

As a result, the concept of green data centers is being harnessed. These green data centers are essentially a repository of data storage and management that utilize systems of computers and lighting that offer maximum energy efficiency as well as cause nominal environmental impact. According to an up to date business intelligence report by Transparency Market Research (TMR), the global green data center market will be worth US1.4 billion by the end of 2022, with the demand expanding at an exuberant CAGR of 30.8% during the forecast period of 2014 to 2024.

The analyst of the TMR report has highlighted a fairly consolidated competitive landscape with the shares mostly confined within a few major players such as Oracle, Cisco systems, Dell, Hewlett-Packard, IBM, APC Corp, EMC Corp, Fujitsu Corp., and Huawei Technologies, Ericsson, and International Business Machines Corporation (IBM). These companies are major players in the data center market as a whole and have recognized governmental emphasis on ecofriendly measures, and hence harnessing the possibilities of this niche segment. These vendors are offering a number of efficiency solutions to their end users and are constantly improving their product portfolio as well as expanding geographically to hold onto their position of strength.

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The cornerstone in the growing field of cloud computing is virtualization, wherein specific servers can run several virtual machines (VMs) within a single hardware, which means lesser usage of resources and energy. With green data centers, CPU utilizations can be incremented anywhere from 40% to 60%.

Based on power usage effectiveness (PUE) standards, the market for green data center has been segmented into PUE greater than 2, PUE 1.5 to 2, and PUE 1 to 1.5. Component-wise, the market has been bifurcated into security appliances, networking, storage and servers, power backup, and air conditioning.

On the basis of ownership, the green data center market has been classified into external including dedicated hosting and co-location and internal, which has been further sub-segmented into transportation and logistics, energy and utility, government, banking, financial services, and insurance (BFSI), telecommunication, IT, healthcare, and others such as retail. Geographically, North America and Europe are currently the two regions with maximum demand potential, although Asia Pacific is poised to increment the demand at an above-average growth rate.

Some of the key factors that augur well for the green data center market are: government regulations to achieve greater energy efficiencies, surging demand for data storage from SMEs, rising cost of electricity, high data center operational costs, corporate social responsibilities, and data center space constraints. On the other hand, requirement of substantial initial capital investment, incompatibility of green solutions with traditional data centers, and strong lack of awareness among potential consumers are some of the restraints hindering the market’s prosperity.