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Demand from the IT Sector to Drive Server Rack and Rack Options Market to US$120.5 Million by 2016 Says Frost & Sullivan - Datacenters' need for uninterrupted and high-quality power bodes well for the market - PowerSupplies.Frost.com
Demand from the IT Sector to Drive Server Rack and Rack Options Market to US$120.5 Million by 2016 Says Frost & Sullivan

 

PRZOOM - /newswire/ - Kuala Lumpur, Malaysia, 2011/07/27 - Datacenters' need for uninterrupted and high-quality power bodes well for the market - PowerSupplies.Frost.com.

   
 
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The IT sector has consistently accounted for the largest share of the revenue pie in the Southeast Asian and Australasian server rack and rack options market, and contributed a whopping 46.3 per cent of the total share in 2010.

The centralisation of IT facilities has led to the proliferation of both large and small datacentres, which need power quality measures for business continuity. Server rack and rack options are beginning to play an increasingly prominent role as a power quality solution, as versatility and technological enhancements are vital for interactions with third-party systems.

New analysis from Frost & Sullivan (powersupplies.frost.com), Southeast Asian and Australasian Server Rack and Rack Options Market, finds that the market earned revenues of US$84.5 million in 2010 and estimates this to reach US$120.5 million in 2016, growing at a compound annual growth rate (CAGR) of 5.6 per cent during the period.

With new communication networks and datacentre installations multiplying, particularly in the Southeast Asian region, numerous data communications and applications such as servers, data storage, base station and mission-critical equipment will be in huge demand. This, and the emphasis on green initiatives, will increase the uptake of server rack and rack options.

The homogenous nature of the market and its maturity in developed economies have compelled manufacturers to focus on product innovation to redefine the market, create opportunities and ensure long-term growth. As the degree of technical change is low in this market compared to other power equipment markets, manufacturers are challenged to add value to their rack systems.

"Wireless connectivity will be a key value-added benefit for end users, as it will replace wiring and cabling with secure wireless connections," says Frost & Sullivan Industry Analyst Teoh Chew Yew. "This is still an emerging trend but is likely to attract a lot of business and will simplify operation management and reduce maintenance costs."

Rack-added components are also becoming increasingly popular and there have been technological advancements in the sensors and rack infrastructure to integrate these new components. Major manufacturers are developing 'smart' and 'green' power distribution units (PDUs) that add value to rack systems.

To further broaden their portfolio, differentiate themselves and sustain business interest, manufacturers have to improve awareness about the latest features or value adds in the newest rack deployment. New product enhancement in power management tools, ducting system and power cooling have substantially increased the value of server racks and enclosures.

Apart from corrosion protection, system expandability and thermal management, manufacturers have sought to improve compatibility and connectivity of third-party systems such as Internet protocol (IP) management and wireless application. However, the influx of products and services from new participants has placed considerable pressure on manufacturers' margins.

"Manufacturers are constantly seeking alternatives to reduce costs while improvising on system efficiency in a highly competitive environment," notes Teoh. "They are also required to match the pace of current market dynamics to meet customers' expectations and specifications without compromising on price."

If you are interested in more information on this study, please send an email to Donna Jeremiah, Corporate Communications, at djeremiah[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

Southeast Asian and Australasian Server Rack and Rack Options Market is part of the Power Supplies & Batteries Growth Partnership Services program, which also includes research in the following markets: Asia Pacific DC-DC Converter Market, Asia Pacific Secondary Lithium Battery Market, Southeast Asian and Australasian DC Power System Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents.

Southeast Asian and Australasian Server Rack and Rack Options Market / P4A1

 
 
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Demand from the IT Sector to Drive Server Rack and Rack Options Market to US$120.5 Million by 2016 Says Frost & Sullivan

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