The Data Center Rack PDU market was valued at USD 1.61 billion in 2020 and is expected to reach USD 2.72 billion by 2026, at a CAGR of 9.16% over the forecast period 2021 - 2026. Datacenter management teams continuously look for ways and approaches to increase energy efficiency, while providing a modular and highly adaptable IT environment to support the service-oriented architectures and the rapid changes in demand parameters. Although software, systems, and storage have become highly adaptable, none of these matters in the data center, unless the power infrastructure is also adaptable. These basic needs have driven the market for data center rack PDU.
- IT equipment in the data center is evolving at a much higher rate than the typical life expectancy of the data center. Data centers are typically designed with a life expectancy of 10-15 years, whereas most IT equipment refresh cycles hover around 2-5 years.
- More powerful equipment often results in an undersized power supply system, driving the need for updating these PDU units. Different power requirement drives for PDU demand for different power needs, for instance, for medium density need PDU in range of 5-10 kW/rack and for high-density demand, PDU in range of 15-30 kW/rack equipment may be used.
- Such multiple factors drive the demand for PDU, and different electrical supplies and equipment designs also result in product differentiation based on design parameters and impact the market.
Key Market Trends
Increasing Deployment of Data Center Facilities
- The growing deployment of data centers around the world is the major driving factor influencing the demand for data center racks PDU. The increasing demand for technology services and increasing investments in data center installation capabilities from major companies are also influencing the growth of the market.
- With evolving technologies and the adoption of high-density servers, rack infrastructure has become an important aspect in data centers, with the need to effectively host servers, manage cables, and facilitate power availability for the uninterrupted optimum performance of data centers and drives the demand for rack PDU.
- The growing deployment of data centers around the world is the major driving factor influencing the consumption of data center racks. Multiple critical business units require the data centers to be on all the time. Even the datacenters are distinguished based on their uptime as a significant parameter. The increasing demand for technology services and increasing investments from major companies are also influencing the growth of the market.
Asia-Pacific Region to Record a Significant Growth Rate
- The APAC region is expected to be the largest contributor to global demand, as the region is experiencing huge investment for bigger and faster IT infrastructure. For instance, Australia alone makes up 4% of the global data center market, according to Cisco Systems, with large multinational players, like Equinix and AirTrunk, building hyper-scale data centers in Sydney and Melbourne. Such developments are expected to drive the PDU market.
- The key factor pushing the growth of the market in the region is the explosive digital needs from the emerging economies with huge populations, such as China, India, Singapore, and Indonesia. Service-based industries, e-commerce growth, and the governments' push for digitization are augmenting the demand. Moreover, the rising complexities within the IT infrastructure brought by virtualization and consolidation, coupled with cost constraints, are encouraging enterprises to look into adopting data center technologies, thus, driving the market.
- As the data center ecosystem becomes more complex, the demand for data center infrastructure management also increases, helping the market demand. This is especially prevalent in more technologically-advanced countries, such as Japan. Ultimately, a rise in data center infrastructure may drive the data center racks PDU market.
The data center rack PDU market is moderately fragmented. With changing technologies and the adoption of high-density servers, rack infrastructure has become an important aspect in data centers, with the need to effectively host servers, manage cables, and power distribution and monitoring for ensuring optimum performance of data centers. Overall, the competitive rivalry among the existing competitors is high, given the fact that data center solutions are offered as one complete solution. Some end users in the stage of agreement ask for specific supplier parts used in their data centers, and thus, intensifies the competition for vendors to vouch for the market pie. Merger and acquisition is an important strategic tool in the market for improving market presence.
- May 2019 - Vertiv successfully completed the NTT Europe Online's deployment of the Avocent ACS advanced console server and Power Management Distribution Unit. The solution allowed the company to manage its data center operations centrally and remotely, in order to minimize the number of on-site engineering personnel, streamline administrative efficiencies, and respond faster to the needs of its customers.
- August 2018 - Legrand announced the purchase of Shenzhen Clever Electronic Co. Ltd, the Chinese leader in intelligent PDUs4 for data centers. Shenzhen Clever Electronic Co. Ltd, thus, rounds out Legrand's existing product offering in a high added-value segment, where Legrand is already number one in the United States with its Raritan and Server Technology brands.
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