Dell’Oro Group: Data Center Physical Infrastructure Market Grew 11 Percent in 2021

March 30, 2022

According to a recently published report from Dell’Oro Group, data center physical infrastructure revenues grew 11 percent in 2021, despite supply chain constraints limiting growth in the second half of the year. As those supply chain constraints are forecast to remain throughout 2022, unit growth is forecast to be limited, with rising ASPs supporting revenue growth in 2022.

“Data center physical infrastructure vendor’s backlogs continued to grow in 4Q 2021, with many vendors touting record levels,” said Lucas Beran, Principal Analyst at Dell’Oro Group. “This highlights the complex dynamics of the data center physical infrastructure market right now – historically high levels of demand, with the most significant supply chain challenges the industry has ever faced. However, this creates a significant opportunity in the market for vendors that can navigate the challenges better than others, leading to potential long-term changes in the market’s competitive landscape,” explained Beran.

Additional highlights from the 4Q 2021 Data Center Physical Infrastructure Quarterly Report:

Schneider Electric, Vertiv, and Eaton were the top three data center physical infrastructure vendors, accounting for 45 percent of revenues in 2021.

The fastest-growing data center physical infrastructure market segment in 2021 was thermal management, with revenue increasing 14 percent, led by direct liquid and immersion cooling technologies.

Worldwide data center physical infrastructure revenues are forecast to grow 8 percent in 2022, exceeding $23 billion.