Data Center Rack PDU Market Size Worth $2.40 Billion By 2027

Data Center Rack PDU Market Growth & Trends

The global data center rack power distribution unit market size is projected to reach USD 2.40 billion by 2027, expanding at a CAGR of 7.2% from 2020 to 2027, according to a report by Grand View Research, Inc. The on-going novel coronavirus pandemic is expected to negatively impact the world’s economy. Several companies are focusing on running their businesses and protecting their employees.

During this pandemic, data centers are expected to be the key pillars that are holding the markets together since people are advised to stay at home. Owing to social distancing, millions are turning towards internet since social interactions are moving online and business-to-business communications are taking place digitally. This is expected to significantly increase the importance of data centers across the globe, thereby resulting in the market growth over the forecast period.

Data center rack power distribution unit (PDU) provide optimum power distribution and complete power protection for devices in the center. Power distribution units can be installed horizontally or vertically within a rack. The market is driven by increasing number of data centers in developing countries, such as China. According to the Ministry of Industry and Information Technology (MIIT), in 2016, the total number of data centers in China was 1,641, with an additional 437 centers under construction and due to open.

Rapid growth of the IT sector is fueling the demand for data center rack power distribution units. According to the India Brand Equity Foundation (IBEF), in 2019, the IT-BPM sector in India was valued at USD 177 billion and is estimated to reach USD 350 billion by 2025. India is considered to be one of the important offshore destinations for IT organizations worldwide. Companies such as Microsoft Corporation, Oracle Corporation, and Amazon Web Services, Inc. have a strong presence in India and are focusing on expanding their business in Asia Pacific. However, this expansion can be delayed owing to the ongoing novel coronavirus crisis.

Increasing adoption of cloud-based technology is fueling the market growth. In cloud data centers, third party service providers lease storage space to organizations from multiple industries. Companies such as Google LLC and IBM Corporation that operate at the global level provide cloud-based services to organizations from various sectors, such as manufacturing, media and entertainment, healthcare, and transportation. The adoption rate of cloud-based technology is high owing to several benefits, such as cost effectiveness, data security, and centralized access to authorized personnel, thus leading to the upsurge in market growth over the forecast period.

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Data Center Rack Power Distribution Unit Market Report

Data Center Rack PDU Market Report Highlights

  • The market is expected to witness significant growth in the years to come is due to rising demand for energy efficient power distribution products
  • By product, the non-intelligent segment accounted for the largest share of over 50.0% in 2019. Cost-effectiveness will significantly impact the growth of non-intelligent PDUs over the forecast period since several small and medium enterprises will find intelligent PDUs costly
  • Intelligent rack power distribution units are expected to witness the fastest growth over the forecast period wing to the presence of metered and switched intelligent power distribution unit categories, which offer enhanced features
  • The market is consolidated and is characterized by high competition with the presence of major global players. Companies are engaged in mergers, collaborations, and acquisitions to expand their geographical presence and enhance their product portfolio.

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