The Asia Pacific data center blade server market was valued at US$4.039 billion in 2020 and is expected to grow at a CAGR of 13.73% over the forecast period to reach a total market size of US$9.936 billion by 2027.
A blade server is a high-density, small, portable device that houses a computer used to manage and distribute data in an entire network. This device serves as an interface between computers, programs, applications, and systems. Essentially, a blade server is a modularly designed server computer optimized for using a minimum amount of physical space and energy. Most often, these are used by large data centers due to the fact that they need to maximize their space and power capacity utilization and efficiency, have high computing requirements, and can support a higher thermal and electrical load.
Blade servers can be inspected, replaced, or repaired instantly thanks to their slidable, swappable design, all the while other blade servers within the enclosure continue to function as usual. It lowers hardware costs, resulting in the adoption of the technology, thus increasing the market size. Furthermore, the product is relatively cheaper, as each server blade is not comprised of a separate infrastructure and chassis.
Cloud computing is one of the sectors that has been significantly driving the data center colocation industry. The adoption of cloud computing has been proliferating over the past few years. The largest telecom company in the Gulf will partner with China's Alibaba Cloud to help Saudi Arabia build a cloud computing infrastructure in late 2020. As part of China's broader national push to become a high-tech leader, this was the latest deal Chinese companies have struck to expand their reach overseas.
Although blade server units are expensive to purchase, customers are bound to them for a long time, limiting the ability to integrate or update them. Several countries, including India, Japan, and China, are becoming more attractive data center destinations, given their extensive investments in telecommunications, banking, and insurance, among other sectors requiring new data centres. As the demand for big data and cloud computing increases in this region, especially in India, the market for blade servers is positively impacted.
In terms of data center infrastructure, international corporations providing cloud services have partnered with third-party vendors to support their services with high-capacity data centers and blade servers to reduce operational costs. Combining blade servers with the cloud can help lower operating costs and boost efficiency. Several types of infrastructure are needed by cloud providers, including high levels of bandwidth and resiliency, as well as dedicated data centres. As opposed to rack servers, blade servers have higher initial costs, limiting their market growth.
The adaptation of digitalization in the energy and utility sector is driving a requirement for data accumulation, as well as an increase in the costs associated with power consumption, which can fuel the market. Recently, Google's 9,500-kilometer fibre-optic submarine cable project connecting Japan, Guam, and Australia will have 36 Tbps of capacity. It is expected that renewable power will contribute 24% of the country's electricity by 2030. Renewable energy production from solar power plants has increased. Cloud computing is being used in the energy sector to boost manageability and improve business decisions, which requires data centres.
AI technology is aggressively being pursued by major Korean ICT companies. Among the leading electronics companies - Samsung and LG Electronics - the top internet companies - Kakao and Naver, and the major telecom companies - SK and KT - have invested significantly in artificial intelligence.
Through the development and acquisition of data centers and other facilities, Mitsui & Co. is expected to invest 300 billion yen by 2026. Trading company partners will build three large buildings by 2026 in three cities, including Kyoto and Chiba.
Data center blade servers are expected to be constrained by high capital investment costs associated with integrating expensive technology. Compared to rack servers, blade servers have a higher initial cost, which in turn, limits their market growth. Meanwhile, difficulties associated with blade server installation and restrictions on storage and expansion are hampering blade server market development in the Asia Pacific.
COVID-19 has increased the need for shared infrastructure. Colocation spaces have increased across APAC due to government-sanctioned lockdowns and the increased availability of internet services. Many companies in the IT sector, BFSI sector, hospitals, and education sector are enabling remote work for employees. Cloud-based services are being utilized by government agencies to secure state data. Colocation services have also grown in demand due to the online teaching model in the education sector. Zoom, WebEx, and Google Meet have become increasingly popular video conferencing platforms. With the COVID-19 outbreak, the use of online shopping has significantly increased. As a result, it induced demand for data centers, and colocation service providers experienced strong uptake from existing customers. Due to the pandemic, new business models emerged, such as cloud hosting, video conferencing, and colocation services. As a result, cloud services expanded tremendously, which is driving the growth of the data center blade server market.
A number of significant players are present in the data center blade server market, which is moderately consolidated. Additionally, these companies invest constantly in acquiring and partnering with other companies to reach new markets. The barrier to entry for new players is also high, as companies need more initial capital to enter the market.
PRIMERGY CX400 M4 is a multi-node blade server from Fujitsu that enables users to adapt to a wide array of high-performance and technical computing workloads. Designed with dual sockets, it is equipped with the latest generation of Intel Xeon Processor Scalable Family.
As part of Microsoft's xCloud project, which launched in 2018, the company introduced a custom blade server that hosts the internal components of four Xbox One consoles, along with associated infrastructure. By partnering with each other, companies aim to provide users with live streaming gaming experiences.
Hong Kong and China have adopted blade-type servers already. Blade servers are most often used to provide high-density computing in data centers in China. As these countries adopt digital currencies, the demand for quantum computers is also on the rise.
Australia's IT infrastructure spending will be dominated by cloud-service providers, followed by enterprises that will be implementing their own IT infrastructure solutions. As Google Cloud prepares to open its second Australian cloud region in Melbourne and its 11th to date in the APAC region. As part of its worldwide high-performance network, Google announced that it had added Melbourne to its 26 existing Google Cloud regions.
A colocation provider and independent data center platform, Mantra Data Centers (MDC), plans to spend $1 billion on building data centers across India. MDC plans to establish state-of-the-art data center facilities and deploy their initial IT loads of 20MW in each key data hub: Mumbai, NCR (Delhi), Chennai, Bangalore, Hyderabad, and Kolkata.
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. Research Methodology
2.1. Research Data
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. The threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Function
4.4. Function Value Chain Analysis
5. Asia Pacific (APAC) Data Centre Blade Server Market Analysis, By Data Centre Type
5.2. Tier 1
5.3. Tier 2
5.4. Tier 3
5.5. Tier 4
6. Asia Pacific (APAC) Data Centre Blade Server Market Analysis, By Service
6.2. Professional Services
6.3. Consulting Services
6.4. Installation and Support Services
7. Asia Pacific (APAC) Data Centre Blade Server Market Analysis, By End User
7.2. Large Size Organization
7.3. Small Size Organization
7.4. Medium Size Organization
8. Asia Pacific (APAC) Data Centre Blade Server Market Analysis, By Vertical
8.2. IT and Telecom
8.4. Media and Entertainment
8.5. Banking, Financial Services, and Insurance (BFSI)
9. Asia Pacific (APAC) Data Centre Blade Server Market Analysis, By Country
10. Competitive Environment and Analysis
10.1. Major Players and Strategy Analysis
10.2. Emerging Players and Market Lucrativeness
10.3. Mergers, Acquisitions, Agreements, and Collaborations
10.4. Vendor Competitiveness Matrix
11. Company Profiles
11.6. Inspur Systems
11.8. NEC Corporation
11.9. Unitas Global
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