Global market outlook for virtual desktop infrastructure (VDI)
According to Technavio’s market research analyst, the global VDI market will exhibit promising growth and post a CAGR of over 11% by 2020. The preference for workplace flexibility and business agility is a key factor spurring this market’s growth over the forecast period. Globally, the IT environment is changing at a rapid pace, as are business needs and demands. As a result, enterprises have been compelled to continually evolve and streamline their processes to adapt to these changes. Most enterprises also prefer following a smooth workflow irrespective of hindrances, such as time zone barriers and changes in work locations. They also want to ensure access to official and confidential data through the personal devices of their workforce. VDI environment eliminates the need to manage thousands of individual systems and allows centralized management of resources in enterprise data centers or server rooms. Other benefits include higher flexibility, simplified backup operations, greater security control and compliance, faster problem resolving capabilities, rapid deployment of virtualized desktop, and application on-demand to any devices.
In terms of geography, the Americas currently dominates this market and is anticipated to retain its dominant market position by the end of 2020, owing to the growing adoption of smartphones and the increased need for better computing models. In this region, education and healthcare sectors, which were early adopters of virtualization solutions, are witnessing the augmented use of VDI solutions. This trend is likely to spread to other industry verticals like the BFSI and government sectors during the forecast period.
Overview of the global network function virtualization (NFV) market
Technavio’s market research analysts predict the global network function virtualization (NFV) market to grow rapidly at a CAGR close to 33% by 2020. The increasing adoption of internet-connected devices will provide a major boost to the global NFV market. A rise in the number of connected devices will lead to the generation of large blocks of data. The growing popularity of ideas such as connected car, connected home, connected health, and smart cities has led many industries such as manufacturing, utilities, retail, automotive, and social media to use IoT for increased data transfer. NFV can connect and manage the heterogeneous elements of IoT securely. It is adopted by telecom operators to use the power of virtualization and commercial servers, and open software to build, operate and manage these networks. It maintains the network resources by analyzing and managing the traffic flows throughout the network. Moreover, the deployment of VNFs in NFV platforms such as mobile core, DPI, routing, gateways, traffic management, and security provide the opportunity to customize network services for IoT, which also contribute to this market’s growth over the coming years.
One of the recent trends gaining significant traction in the market is the increasing adoption of NFV by enterprises. Initially, telecom operators were the dominant adopters of NFV, but the market for NFV is expected to move towards enterprise cloud and internet service providers over the coming years. Private cloud is also one of the proposed areas for NFV
Overview of the data center liquid cooling market
According to the market research analysts at Technavio, the data center liquid cooling market will witness fast-paced growth and will post an impressive CAGR of close to 16% over the forecast period. The increasing use of modular and containerized data centers because of their ability to offer enhanced efficiency through reduced energy and water consumptions is one of the major factors driving this market’s growth. These data centers can easily adapt to variations in temperature and humidity and include servers, precision air conditioning units, and uninterruptible power supply systems. Moreover, modular and containerized data centers also have free-cooling technology. The efficiency of these data centers is highly dependent on cooling units used in them and they can be modified to offer adequate performance, regardless of the heat generated, which will fuel the demand for data center liquid cooling over the next four years.
One of the recent trends gaining significant traction in the market is the augmented adoption of liquid immersion cooling solutions. These cooling solutions operate on the principle of liquid submersion technology, in which the server and other IT equipment are placed inside tanks containing non-conductive coolants. The coolant dissolves the heat generated by the equipment and circulates it throughout the system. Also, these solutions offer uniform and effective cooling with high thermal efficiency, which will fuel this market’s growth
Overview of the data center infrastructure management (DCIM) market
According to the market research analysts at Technavio, the global data center infrastructure management (DCIM) market will witness impressive growth and post a staggering CAGR of more than 11% over the forecast period. With several technological advancements such as cloud, big data, IoT, and virtualization, the data center environment is becoming increasingly complex. It has been estimated that nearly 20%-30% of resources are not being utilized properly, including comatose servers and storage and network infrastructure. In addition, a server running at its full capacity emits an enormous amount of heat that needs to be cooled down by the cooling infrastructure. DCIM solutions help in the optimum utilization of IT resources in a data center and helps the operations manager to allocate resources for optimum functionality, leading to its increased adoption over the forecast period.
The increasing adoption of containerized data centers is one of the most significant trends propelling this market’s growth over the forecast period. A containerized data center is portable as it is pre-installed in a shipping container. These data centers are a part of a modular data center, in which each module is a container that can host IT, power, and cooling equipment. Several enterprises are building modular data centers that include many data center container modules in a single facility. The installation to deployment time for these modules is less than six months and are highly cost effective. The deployment cost of a
Overview of the data center construction market
According to the market research analysts at Technavio, the global data center construction market is anticipated to witness tremendous growth and will post a CAGR of more than 12% over the forecast period. Over the last few years, several government organizations around the world have established data centers for their operations. For instance, in the US, almost all state and local government agencies operate data centers across the country. Many CSPs and colocation vendors are involved in building data centers for government agencies. Moreover, with the increasing adoption of cloud-based services, big data analytics, and the IoT, the market is witnessing an increasing construction of data centers. Also, many colocation and managed cloud hosting providers are allocating private spaces in their data centers for government agencies to offer cloud and big data analytics, which will, in turn, contribute to the growth of this market in the coming years.
In terms of geography, the Americas led the market and is expected to continue its dominance over the forecast period. Although the construction of new data centers has decreased in the region, the investment in data center construction has grown with additional investment in renewable energy sources for data center operations. Most of the data centers in operation in the US are owned by global CSPs, colocation and managed hosting services vendors, and telecommunication organizations. The US was the highest revenue contributing country in the region as it is home to many Fortune 500 companies such as Google,
Overview of the data center market in China
According to the market research analysts at Technavio, the data center market in China is expected to witness exponential growth and will post an impressive CAGR of nearly 13% during the forecast period. Data centers process and store business information and form the backbone of all cloud-based operations. Therefore, many large enterprises, such as Amazon Web Services, Microsoft Azure, Google Cloud, and Alibaba operate data centers for their daily business operations. Several growing small and medium-sized enterprises (SMEs) prefer to run their business operations through cloud service providers (CSPs), colocations, and the web hosting cloud data centers because of benefits like scalability, reliability, and cost reduction. Moreover, the demand for public cloud storage is expected to grow because of the decrease in cloud storage cost for Chinese consumers, which will fuel the growth of the data center market in China over the coming years.
One of the emerging trends propelling the growth prospects for this market is the increase in construction of green data centers. Increase in carbon emissions and high consumption of electricity through data centers worldwide are creating awareness among enterprises for the construction of green data center facilities. These facilities help in the operation of energy efficient IT, power, and cooling infrastructure, thereby reducing the electricity consumption and carbon footprint. Moreover, advanced technologies and strategies are implemented in a data center to improve its performance. Concepts such as free cooling, use of renewable energy sources, consolidation, and waste