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
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
2016 Engineering Leaders Under 40; Future vision: Where is manufacturing headed?; Electrical distribution, redefined
Strategic outsourcing delivers efficiency; Sleeve bearing clearance; Causes of water hammer; Improve air quality; Maintenance safety; GAMS preview
World-class maintenance: The three keys to success - Deploy people, process and technology; 2016 Lubrication Guide; Why hydraulic systems get hot
Flexible offshore fire protection; Big Data's impact on operations; Bridging the skills gap; Identifying security risks
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Getting to the bottom of subsea repairs: Older pipelines need more attention, and operators need a repair strategy; OTC preview; Offshore production difficult - and crucial
Applying network redundancy; Overcoming loop tuning challenges; PID control and networks
Driving motor efficiency; Preventing arc flash in mission critical facilities; Integrating alternative power and existing electrical systems
Package boilers; Natural gas infrared heating; Thermal treasure; Standby generation; Natural gas supports green efforts

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role that compressed air plays in manufacturing plants.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
This article collection contains several articles on strategic maintenance and understanding all the parts of your plant.
click me