Global Server Chassis Market is Growing at a Significant Rate in the Forecast Period 2019-2026

Drivers: Global Server Chassis Market

Upsurge in Data Generation:

The growing focus of companies towards expanding business has tended to increase the amount of data generation on the daily basis. The rising amount of data generation is one of the most prominent factors that increase demand for servers. It has been observed that every day 2.5 quintillion bytes of data is created, that can be in form of text, sensor data, audio, video, click streams, log files and others. These high amount data generations are difficult to manage in single PC. As a result, this factor has become prominent factor for increasing demand of servers. These servers offer several advantages over the typical desktop PC such as large storage capacity, centralized accessibility, flexibility and scalability and security of data. These servers are use in business for keeping information at backend. In current situation, organizations require to back up their information all the time. On the bases of this information, analytical tools are applied by the organizations in decision making process, which further contribute in the business growth. These benefits allow the companies to increase their spending on IT infrastructure. For instance, it has been observed that IT spending in 2016 was more than USD 2 billion and is likely to increase up to more than USD 23 billion by 2023.

The growing installation of servers has become one of the prominent factors and has given lucrative opportunities to the server chassis manufacturers as these are used for racking the servers in the cabinet.  Major benefits of placing servers in the server chassis are that it increases the life of servers and it protects servers from damages. In addition to it, by placing servers in chassis helps in cutting down the cost associated with hardware components, which further helps in saving administrative cost of the companies. Therefore, all above factors have positively influenced companies to place the server in there server’s chassis, which further increases the manufacturing of the server chassis. This will in turn propel the growth of the server chassis market.

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The  Growing Concern of Business in Modernizing Data Centres:

The companies are increasingly focused on adoption of new technologies that will help in expanding the business in the future scenario. The adoption of advance technology has further influenced the companies to replace their traditional data centre with modernized data centre. Companies are facing a lot of obstacles while using the agile data centre with advanced technologies. For instance, while loading excess data on the traditional servers the server’s performance starts degrading, which directly hampers the company growth. Therefore, to overcome this problem companies are replacing their traditional data centre with modernized data centre. Usage of modernized data centre in the companies will provide large storage space as compared to the traditional servers and also help in reducing power consumption that is required for managing these data centres. Therefore, the modernization of data centres has become prominent factor for the server chassis manufacture to increase the manufacturing of the server chassis in order to fulfil demand of the market. Installation of server in the server chassis further increases the performance of the server.

Additionally, the rising data breach issues in the companies is one of the major factors that increases concern of the companies to replace their traditional data centre with modernized data centres. For instance, according to The Breach Level Index, the total number of records that were breached in the first half of 2018 was around 3,353,172,708, this show that it was increased by 72% as compared to 2017. Since, data is a valuable resource; it plays an important role in decision making for the growth of the company. Hence, for securing the data from hacker’s companies are increasing their investment for the up gradation of data centres. This up gradation of data centres has further increased the demand of server chassis for housing servers in the data centres. Therefore, rising demands of modernizing data centres help in fuelling the demand for server chassis over the forecasted period.

Rapidly Increasing Digitalization Across the Verticals:

Digitalisation is actually a process of converting information into digital form. This advance technique will help the businesses to stay competitive in the market. In the present scenario, companies are adopting digitalization across the verticals that have become one of the factors for increasing the installation of servers for accommodating the data generated on the daily basis. Major benefits of digitalizing business are that it increases organisation productivity, helps in reducing operational costs, increases organization profitability and data security. The growing digitalization in the companies has further increased the installation of data centres for managing huge volume of data.

In addition to it, companies are increasingly shifting their workloads in the servers as it provides high-security to data that further raises the need for deploying server chassis among companies. This would ensure complete security of data from cyber-attacks.

Hence, rapid growth in the volume of the business data and growing change in regulatory compliance has increased the demand for installing the servers. Instead of placing server in the roof or desk companies keep these servers in the server chassis. The major advantages offered by server chassis is that it protect server from dust and water. As a result, it further help in cutting down the companies maintenance cost.  Furthermore, these server chassis also simplifies network components, which in turn saves the overall IT infrastructure cost.  Hence, the growing adoption of advanced technologies in the businesses is propelling the server chassis manufacturers to increase its production in order to fulfil the growing demand of server installation. Hence, these factors tend to fuel the market of server chassis in the coming future.

Restraint: Global Server Chassis Market

High Initial investment:

The increasing number of businesses across the world  has increased demand for data centres for managing the data that is generated on the daily basis. The increasing installation of servers tends to increase the organization infrastructure cost for setting up the whole architecture. As a result, server manufacturers are developing  high-density cabinets that will help  organizations  to efficiently manage those servers.  For setting up the entire infrastructure, the organisation has to invest heavily at initial stage. Due to this factor small enterprises do not  have budget for constructing of data centre to manage  these servers separately. As these small enterprises has limited budget that restrict them to spend on servers for managing of data. Therefore, this factor enforces the companies to adopt solutions that saves their IT infrastructure cost. Hence, drop in the number of server installations is restraining the growth of  server chassis market.

Opportunity: Global Server Chassis Market

Increasing Demand For Power Saving Racks Architecture:

The continuously increase in the number of internet users has further increase generation of unstructured data. Unstructured data can be of any type such as web pages, legal documents, images, medical records, mobile content and other types of rich media which produces in every second. This has further increased the generation of unstructured data on daily basis. The continuous adoption of the Internet of Things (IoT) across organizations has generated the need of data centres because IoT is equipped with sensors which help in collection of data, thus acting as a backend for the companies. As a result high amount of data generation enforces the companies to install the large architecture of data centre that further allows the companies to efficiently increase workload on the server. The rapidly growing demand for large architecture of data centre is proportionally increasing the demand for large server chassis architecture. This would ensure safe and secured placing of multiple servers in the racks.

Adding to it, the large architecture demands high power consumption and hence some of the players of server chassis are focusing on manufacturing of power efficient architectures. As 1% improvement can result in saving hundreds watts at rack level and kilowatts at data center level. Thus, increasing demand for power saving architecture has become a growth opportunity for the global server chassis market.

For instance, in 2016, AIC, Inc. launched Open Compute Platform (OCP) rack.  The most important feature of this rack is that it saves 50% of electricity consumption by helping in reducing the overall expenses of the organizations.

Challenge: Global Server Chassis Market

Lack of Skilled personnel:

The increasing installation of data centre has further increased the demand for skilled personnel for configuring the server in the racks. Companies require skilled personnel for managing whole server in the data centre. Skilled labour play important role while configuring server in the server chassis. As the companies are rapidly expanding their business, it is equally increasing the amount of data generation on the daily basis. This factor further raises the need of installing servers for managing the daily generated data. As a result, companies need to hire skilled personnel for arranging servers in the data centres. Since, the hiring cost of skilled personnel further increases the administrative cost of the companies, thus it is likely to impact negatively on the small enterprise to hire skilled personnel for configuring of servers.  Since, the SME’s suffering from budget and lack of resources availability has become major challenge for the global server chassis market.

Market Trends

  • On the basis of type, the market is segmented into 1U server chassis, 2U sever chassis, 3U sever chassis, 4U server chassis, and others.
  • On the basis of forms, the market is segmented into Racks and Pedestal.
  • On the basis of application, the market is segmented in to Commercial Use and Personal Use and Others
  • On the basis of distribution channel, the market is segmented distributors, direct sales, and others.

Major Players: Global Server Chassis Market

  • Some of the prominent participants operating in global server chassis market are Some of the prominent participants operating in Server Chassis are Cisco system, Inc., Advantech Co., Ltd, Norco technology, Inc., thermaltake technology co., ltd, Rosewill, Inc., Kontron S&T AG, In win development, Inc. Chenbro Micom Co., Ltd., Mootek technologies,  Silverstone technologies Co., Ltd, Ablecom Technology Inc., and among others.