PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1218808
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1218808
According to Stratistics MRC, the Global Data Center Chip Market is accounted for $10.36 billion in 2022 and is expected to reach $16.81 billion by 2028 growing at a CAGR of 8.4% during the forecast period. The data centre chip, which is often located in the computer area of the data centre, is a crucial component for day-to-day operations. It boosts an organization's productivity and operations and increases redundancy, flexibility, and energy efficiency.
According to research, anywhere between 30% to 55% of a data center's energy consumption goes into powering its cooling and ventilation systems - with the average hovering around 40%.
Market Dynamics:
Driver:
Advent of fourth generation (4G) and fifth generation (5G) networks
The introduction of fourth generation (4G) and fifth generation (5G) connections, as well as the widespread adoption of the Internet of Things (IoT) technologies, are further factors that are promoting market expansion. In keeping with this, the market is expanding due to the growing demand for sophisticated computing devices including utility metres, home security systems, and navigation systems. Other factors are projected to propel the market toward expansion, such as major advancements in the communications infrastructure and the implementation of numerous government programmes surrounding the localization of data centres.
Restraint:
Water Consumption by Data Centers
Data centres need water for cooling both directly (up to 57% of which comes from potable water) and indirectly (through the need for water for the production of non-renewable power). Less than one-third of data centre operators in the USA measure water consumption, even though data centre water use (1.7 billion litres/day) is relatively low when compared to total water use (1218 billion litres/day). This study looks at how much water is used in data centres, how it is measured, how little information is available to evaluate water efficiency, and how the industry is moving forward in its efforts to cut consumption in the future. Thus, this factor is challenging the market growth during the forecast period.
Opportunity:
Increasing deployment of cloud computing & data storage solutions across organizations
A bright picture for the market is being created by the growing adoption of cloud computing and storage solutions across enterprises. Data centres are becoming more and more necessary to handle the massive volumes of data generated due to the constant movement of data from personal servers and the integration of connected devices like driverless vehicles, virtual reality (VR) systems, including personal computers (PCs). Rapid technical developments in memory chips with programmable solutions are also greatly strengthening efficiency in connected gadgets and data centres and making it easier to access massive volumes of data, which is in turn fueling the market's expansion.
Threat:
Increase in Power Consumption by Cooling Systems
One of the most expensive pieces of every data centre is the cooling system. Depending on the application, the power consumption of each server in the data centre racks ranges widely. An average data centre rack uses roughly 1.70 kW of power. The data centre rack power density can now approach 20 kW and above while using high power density servers, including blade servers. The design abilities of the cooling and power systems in data centres are frequently exceeded by this high power density. The above mentioned factor is challenging the market growth during the forecast period.
COVID-19 Impact
The economy has been significantly impacted by the COVID-19 outbreak in a number of ways. Additionally, it has turned its focus toward the digital economy. The manufacturing industry is predicted to use IoT, AI, and block chain technology to expedite smart manufacturing processes as things begin to become routine. Enterprises can cut expenses, improve process efficiency, and dramatically eliminate human contact by implementing these technologies. Currently, AI is primarily used for predictive maintenance, but it is anticipated that it will soon be used to forecast supply chain demand and income.
The Field Programmable Gate Arrays (FPGA) segment is expected to be the largest during the forecast period
The Field Programmable Gate Arrays (FPGA) segment is estimated to have a lucrative growth. FPGAs are semiconductor or integrated circuits that are frequently utilised in electronic circuits. The expansion of the market is attributable to the widespread use of FPGA chips in data centres to speed and enhance the performance of large-scale data systems. The market is expanding because to the increasing use of FPGA in data centres to enable high speed data processing by offering low-latency connections and high bandwidth solutions to network and storage systems.
The IT & telecom segment is expected to have the highest CAGR during the forecast period
The IT & telecom segment is anticipated to witness the fastest CAGR growth during the forecast period, due to both rising consumer demand for high-speed internet services and rising investments by businesses in this industry. Due to expanding consumer buying power and greater Smartphone penetration, which has had a beneficial impact on e-commerce worldwide, the global retail business is predicted to rise significantly throughout the projected period. This industry, also defined as cloud service providers, is in great demand due to the lack of effective cloud computing platforms that provide large storage capacities at competitive prices (CSPs).
Region with largest share:
North America is projected to hold the largest market share during the forecast period owing to the existence of large players, the rapid adoption of new technologies, and the increased demand for cloud-based services, the area is predicted to maintain its dominance over the projection period. Additionally, the expansion of the marketplace is being boosted by rising investments made by businesses in this area.
Region with highest CAGR:
Asia Pacific is projected to have the highest CAGR over the forecast period. Data Centers (DC) have recently assumed a more significant position in organisations in the region as a result of the increasing importance of smart technologies, IoT-powered devices, Big Data, Industry 4.0, 5G, and cloud computing. The deployment of 5G networks, which stimulates investments in edge data centres, the purchase of renewable energy, the installation of cutting-edge data centre innovation, and artificial intelligence, which encourages the adoption of liquid immersion and direct-to-chip cooling, are the factors boosting the development of the APAC data centre market.
Key players in the market
Some of the key players profiled in the Data Center Chip Market include Advanced Micro Devices Inc., Marvell Technology Inc., Fujitsu Ltd., Taiwan Semiconductor Manufacturing Company Limited, Intel Corporation, NVIDIA Corp., Huawei Technologies Co., IBM, Amazon.com Inc, Qualcomm, Google, Facebook, Microsoft and GlobalFoundries.
Key Developments:
In May 2020, Nvidia Corp announced a new advanced chip to run numerous diverse programs on single physical chip.
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Industries Covered:
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What our report offers:
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