IT rack, enclosure market to grow to $2.6 billion in 2016

Revenues of IT racks and enclosures are forecast to grow by nearly a billion dollars over the next five years; from an estimated $1.7 billion in 2011 to $2.6 billion at the end of 2016.

04/11/2012


Revenues of IT racks and enclosures are forecast to grow by nearly a billion dollars over the next five years; from an estimated $1.7 billion in 2011 to $2.6 billion at the end of 2016. Most of the revenues will be added in Asia, where new data center construction and upgrades are driving a fast rate of growth.

A new report from IMS Research, recently acquired by IHS Inc., projects revenue growth to average close to 9% over the next five years. However, growth for this year is forecast to be weaker due to the continuation of the Eurozone crisis and the associated drop in infrastructure investment in the region.

Asia will add the most revenues over the next five years and grow at a faster rate than most of the rest of the world. Report author Elizabeth Cruz notes that “China is an important market to watch. IMS Researchprojects it will nearly double in revenues over the next five years. Given the region’s rapidly growing economy, there are major opportunities for the development of both networking and data center infrastructure.”

Aside from China, other regions expected to grow by double-digits over the five-year forecast are Brazil, the Middle East, Russia, and India. These regions’ growing economies and increasing deployment of IT hardware will drive the need for racks and enclosures in the future. 

Cruz continues, “There are three major factors affecting growth in the IT racks and enclosures market: the economy, data center construction and refurbishment, and the trend towards virtualization and server consolidation. Growth of the first two drive increased rack and enclosure revenues, while server virtualization and consolidation inhibit rack growth.” Because virtualization optimizes the performance of servers it also reduces the number of servers and racks for a given computing load. While this is an important trend to watch, IMS Research believes that the impact of economic and data center growth will more than offset this negative trend.

Though 2012 will be a slow growth year globally, the market will recover with a billion dollars being added over the next five years. “So rack manufacturers can rest assured that ample opportunity abounds, especially if looking to the BRIC regions and the Middle East.”

IMS Research regularly analyses all aspects of the data center infrastructure market. More information regarding these detailed reports can be found here.



No comments
Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
Water use efficiency: Diminishing water quality, escalating costs; Lowering building energy use; Power for fire pumps
Building envelope and integration; Manufacturing industrial Q&A; NFPA 99; Testing fire systems
Labs and research facilities: Q&A with the experts; Water heating systems; Smart building integration; 40 Under 40 winners
Maintaining low data center PUE; Using eco mode in UPS systems; Commissioning electrical and power systems; Exploring dc power distribution alternatives
Protecting standby generators for mission critical facilities; Selecting energy-efficient transformers; Integrating power monitoring systems; Mitigating harmonics in electrical systems
Commissioning electrical systems in mission critical facilities; Anticipating the Smart Grid; Mitigating arc flash hazards in medium-voltage switchgear; Comparing generator sizing software
As brand protection manager for Eaton’s Electrical Sector, Tom Grace oversees counterfeit awareness...
Amara Rozgus is chief editor and content manager of Consulting-Specifier Engineer magazine.
IEEE power industry experts bring their combined experience in the electrical power industry...
Michael Heinsdorf, P.E., LEED AP, CDT is an Engineering Specification Writer at ARCOM MasterSpec.