June 28, 2023
Data center physical infrastructure sales soared 18% year-over-year to reach $6.1 billion in the first quarter of 2023, according to a report by the Dell’Oro Group.
According to the study, which was written by research director Lucas Beran, the robust sales rise is due to eased supply chain limitations, higher pricing, and strong demand.
During the fourth quarter of 2022, vendors began to see supply chain improvements, which have persisted into 2023. This allowed businesses to start working through their backlog of orders, which contributed to robust sales growth.
While DCPI manufacturers have raised their pricing to reflect rising raw material, component, and shipping costs, cloud and colocation service providers have continued to expand their worldwide data center footprints to satisfy strong demand. Businesses are also downsizing and updating their on-premises data center infrastructure.
The data center physical infrastructure market is thriving, with revenue predicted to rise by 12% in 2023, reaching $26.7 billion. In the first quarter of 2023, all physical infrastructure products experienced sales growth. The highest growth rates were seen in thermal management and cabinet power distribution, with a revenue increase of over 30% compared to the previous year. This growth was made possible by the easing of supply chain constraints for fans and breakers.
The sources for this piece include an article in DataCenterKnowledge.
