The market valuation of data center infrastructure management (DCIM) systems will cross $4.5 billion by 2026, according to the latest report by Global Market Insights, Inc., entitled, "Global DCIM Market by Component (Solution [Asset Management, Network Management, Cooling Management, Power Management, Security Management], Service [Installation & Integration, Managed, Consulting]), End-Use (Colocation, BFSI, Energy, Government, Healthcare, Manufacturing, IT & Telecom), Regional Outlook, Competitive Market Share & Forecast 2026."
Rising data center IP traffic and increasing demand for intelligent physical infrastructure for supporting IT assets is expected to drive the market's growth over the forecast time span. As its core premise, the new DCIM market report considers that an "increase in consumer and business applications is contributing to the growing dominance of cloud services globally. The growing adoption of social networking, streaming video, and internet searches along with business applications, such as Enterprise Resource Planning (ERP), collaboration, and digital analytics applications, are increasing data generation," adds the analyst.
Global Market Insights notes that, according to Cisco Systems, it is estimated that global data center IP traffic will reach 19.5 ZB by the end of 2021, up from 6.0 ZB per year in 2016, and that rising data traffic and the need to manage massive data and cloud resources are encouraging companies to invest in the construction of hyperscale data centers globally. Per the report's summary, "The growing adoption of cloud computing resources has led to increased demand for the construction of data centers. Players are investing highly in the construction of new hyperscale data centers, propelling the demand to efficiently monitor and evaluate data center components and infrastructure, thereby driving the DCIM market growth."
The summary adds, "For instance, in March 2018, Facebook announced to invest USD 750 million for the construction of a hyperscale data center facility in Newton County, Atlanta. Additionally, according to Cisco Global Cloud Index, 2015–2020, the number of hyperscale data center facilities globally is expected to grow from 338 in 2016 to 628 by 2021, mainly in the U.S. and China, followed by Japan, the UK, and Germany."
Key players operating in the data center infrastructure management market, as identified by the report, include Vertiv Co., CommScope, Inc., Rittal GmbH & Co., KG, STULZ GmbH, Siemens AG, Schneider Electric, Cisco Systems, Inc., CA Technologies, and ABB Ltd. As the growing trend of virtualization impacting data centers led to increased demand for DCIM systems for managing IT infrastructure and physical resources for virtualized environments, Global Market Insights notes that these companies are focusing on the development of advanced features and functionality in DCIM software.
The analyst further notes that in 2018, managed services accounted for around 35% of data center infrastructure management market share. These services allow businesses to manage and secure critical IT services including colocation and data centers, Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and cloud computing. Global Market Insights notes that service providers are helping data center operators in effectively managing resources by providing visibility and control of their inventory and IT infrastructure assets. Moreover, the analyst observes that outsourcing these solutions offers several benefits, such as planning and management, enhanced power tracking, control and operational optimization, capacity utilization, and reporting capabilities, to support global expansion.
The new report estimates that healthcare applications in the (DCIM) data center infrastructure management market will grow at 20% CAGR over the forecast timeline due to the increase in investments in healthcare infrastructure and the need to scale data center capacities. This growth is seen as largely facilitated by the increase in data collected by medical practitioners such as the complete medical history of a patient, prescriptions and diagnosis information, and information of the doctor or the surgeon. In such cases, the need for effective DCIM software is vital to the operations of the industry, notes the analyst.
The report adds that the growing adoption of cloud computing, big data, and IoT technology in Latin America has seen cloud service providers, such as Microsoft Corporation and Google LLC, increase their data center construction activities in the region. Such companies are investing highly in DCIM solutions to monitor the operations of high-density components and reduce operational costs. DCIM also enables regular maintenance of infrastructure with reduced energy consumption, which will help enterprises in improving efficiency, as observed by Global Market Insights.