Updated on August 12, 2021
Data Center Market in United States was valued at USD 8.4 billion in 2020, and the market is expected to reach USD 13.91 billion by 2026, registering a CAGR of 8.63% during the forecast period (2021-2026). … As hyper-converged infrastructure platforms gain traction, the market continues to expand.
If you are thinking about what is driving demand for data Center drives in 2021? Answer to your question is that the global data center industry is in the midst of an unprecedented boom in demand, driven in part by factors such as 5G, public cloud and the Internet of Things.
As the pandemic has been a watershed event for the world, it has also been for cloud services. For now, it has accelerated to days and weeks a process of digital transformation that many organizations may have postponed. Today, several sectors are looking to become more efficient, and digital infrastructure has been critical to that transition.
For many businesses, the past year has been spent figuring out the best way to make teams comfortable working from home. But not everyone involved in the tech industry can continue to do their jobs remotely, including those who make the digital world go round by keeping data centers running. Especially since our dependence on online services is growing while the current health crisis is forcing many of us to stay home.
Increasing Demand for Data Storage Will Fuel Growth of HDD & SSD Market
More hyperscale facilities are being built to handle massive amounts of data across the world, which clearly indicates that the data storage demand is driving data center growth. Basically, the point where every purchase in an online store or even the latest series from the major streaming platforms is stored, these business giants require data center drives, HDD & SSD for data storage.
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Behind every piece of data, there is a complex infrastructure, even if we are not always aware of it. It is therefore interesting to understand the importance of data centers for companies beyond the simple physical space. Where the information processed daily is concentrated, to their driving role in the proper functioning of many online services and applications that we use.
Data center drives have become increasingly important in the global IT market in response to the COVID-19 pandemic. During the crisis, data centers have functioned as a backup for the global economy, facilitating the shift towards online services for businesses, schools, and NGOs.
In this sense, the consequent increase in the covid-19 data center demand for these cloud services, driven by e-commerce activities, remote work and online education, together with the vital importance of having data storage and backup systems for many industries, has reinforced the strategic importance of data centers. And while initially what has increased is the covid-19 data center demand for data services, eventually, data centers could exceed their capacity and it will be necessary to build new data centers or expand existing ones.
The Data Center Industry Is Booming Right Now
Gartner analysts predict a global technology investment of $ 3.4 trillion in a year in which CIOs will prioritize projects focused on mission-critical solutions and services over those of digital transformation.
An 8% drop is the percentage that the experts of the analysis firm Gartner are seeing for this year when it comes to IT spending. A decrease in the crisis generated by the coronavirus pandemic, on a planetary scale, is the main trigger because according to the expectations that the consultancy had in January, said spending was going to rise 3.4% compared to 2019.
Now the IT spending figure forecast for 2020 by the consultancy will reach $3.4 trillion. The decline affects all segments to a greater or lesser extent, although those that will suffer the greatest Covid impact on data centers will be data center systems and devices.
The good news is that, due to the boom in teleworking (implemented in a massive and quasi-compulsory way in organizations around the world), there are areas that will emerge, such as public cloud services (a market that will increase by 19%) or telephony.
Cloud-based messaging and conferences also based on this environment, which will register high levels of spending with increases of 8.9% and 24.3%, respectively.
Note: Saitech Inc is a top cloud computing solutions provider and cloud service reseller as a systems integrator (SI) and can manage the deployment of multiple cloud computing & hosting purchases through multiple vendors.
An Analysis of Customer Verticals That Contribute to Data Center Demand
This pandemic may have dramatically accelerated already brewing IT trends. Cloud computing giants like Amazon, Google, Oracle, and Microsoft are spending billions on building and equipping new hyperscale data centers.
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Cloud services are indeed in such high demand that the NAND Flash market is experiencing short supplies despite a reduction in consumer electronics and smartphones. TrendForce, however, projects supply and demand will balance out in the third quarter, resulting in limited changes to NAND Flash prices.
Data center demand is unlikely to decrease anytime soon since business as usual is on hold for the foreseeable future. For the moment, the sector seems fairly confident in its ability to cope with the crisis, at least from an operational point of view. Data centers are inherently risk-averse, and many operators had a pandemic response plan included in their business continuity plan.
What’s more, unlike many governments and organizations, the vast majority of data center operations managers started dusting off these disaster recovery plans as soon as they heard healthcare experts sound the alarm bells. In the face of the emergence of an unknown new type of coronavirus. Enterprises are always looking for robust, advanced, and cost-effective storage devices.
An advanced storage setup increases storage utilization rates (i.e. multiple hosts accessing the storage devices), improves application performance and availability, and heightens security and data protection capabilities. Saitech’s SAN Data Storage Solutions for Enterprises has helped many IT businesses to run their businesses smoothly and effectively.
Data Is Now an Essential Utility During Stay at Home
The telecommunications industry has seen extraordinary global data center traffic growth during these months of lockdown. Data centers, which play a crucial role in network stability for both public institutions and private sector companies, have been at the heart of this crisis. So much so that they obtained critical infrastructure status from the government during COVID-19 in some countries.
The criticality of data centers can be measured by the importance of the information they host. Thus, the files of the Public Treasury, Social Security or even those of the Justice of a country are all sensitive data stored in data centers.
In short, data centers play a crucial role in our society where the information that circulates is key. This is all the stronger in times of crisis like the one we are going through. Data must all the more continue to circulate for the proper functioning of public bodies or many other sensitive activities such as hospitals or banks… These are just a few examples to show the importance of data centers in situations of this type.
Market analysts expect a growth rate of 18.30% for the data center market over the next year. In response to the growth in global data traffic, the demand for computing power and storage has increased. This has led to increased use of such IT infrastructure.