
Covid-19 supply chain hits datacentre rack power market
The 3.3 percent decline in revenue in 2020 comes from delays in enterprise spending and disruptions in the component supply chain as a result of teh COvid-19 pandemic, say market researchers Omdia. The market saw near double-digit growth in 2018, although 2019 was flat as as cloud and colocation datacentre service providers absorbed new capacity,
At the beginning of 2020, the market was expected to grow 4 percent, but enterprises now are pushing back their plans to spend on new equipment as they say demand has been dampened by the impact of Covid-19. However this is at odds with the boom in online services as a result of lockdowns to tackle the pandemic and may lead to a bottleneck in datacentre capacity expansion
More likely is the supply chain issues that are a result of Covid-19-related component shortages. Although most component makers say there has not been a large impact, packing plants in China, Malaysia and the Philippines have all had to close for up to two weeks and any have been prioritising work for medical components rather than rack power.
The networked rPDU market will face the brunt of the downturn, with the area more negatively impacted than basic rPDUs says Omdia. “Covid-19 is heavily impacting market segments whose fortunes are tied to energy, including retail, transportation and oil and gas—with a full recovery unlikely for several years,” said Vijendra Krishnamurthy, senior analyst, cloud & data centre, at Omdia. “However, there are plenty of reasons for optimism, with demand from cloud service providers (CSPs) and colocation data centers expected to increase in 2020 and 2021. This increase is due to rising demand related to remote working and home entertainment, initially caused by government stay-at-home orders, but expected to continue afterwards.”
Enterprises seeking to delay capex investments are using cloud services as a temporary substitute for bringing new applications or additional compute capacity online. There are also opportunities in the healthcare industry as enterprises look to invest in digital infrastructure to handle future health crises. Education is another area where new opportunities have arisen to support remote learning.
For the rPDU market, a recovery is expected to begin in the second half of 2020 that will become more pronounced in 2021, similar to the semiconductor market:
This is forecast to materialize in rPDU market revenue growth of 4.7 percent in 2021 compared to 2020. Asia is forecast to grow the fastest followed by the Americas, while the recovery in Europe, Middle East and Africa (EMEA) is forecast to be relatively slower.
Overall, this gives the global rPDU market a five-year compound annual growth rate (CAGR) of 1.7 percent to 2023.
Omdia’s Rack Power Distribution Unit Market Tracker
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