International. Revenue from the global rack power distribution units (rPDU) market will decrease by 3.3 percent in 2020 due to COVID-19-inspired delays in business spending and component supply chain disruptions.
After near-double-digit growth in 2018, revenue from the rPDU market did not change much in 2019, as cloud and colocation data center service providers absorbed the new data center capacity, according to Omdia's analysis. In early 2020, the market was expected to accelerate to 4 percent annual growth. However, the world changed in 2020 due to the global pandemic, as did the outlook for the rPDU market.
Businesses are now delaying their plans to spend on new equipment as demand has been tempered by the impact of COVID-19. In addition, these companies face problems in obtaining adequate supplies of parts due to the shortage of components due to the pandemic.
The networked rPDU market will face the brunt of the recession, with the area more negatively affected than basic rPDU.
"COVID-19 is strongly impacting market segments whose fortunes are tied to energy, including retail, transportation, and oil and gas, with a total recovery unlikely for several years," said Vijendra Krishnamurthy, senior analyst, data center and cloud at Omdia. "However, there are many reasons for optimism, as demand from cloud service providers (CSPs) and colocation data centers is expected to increase in 2020 and 2021. This increase is due to rising demand related to remote work and home entertainment, initially caused by government orders to stay at home, but expected to continue afterward."
In addition, companies looking to delay capital investments are using cloud services as a temporary substitute for bringing new applications or additional computing capacity online. There are also opportunities in the healthcare industry as companies look to invest in digital infrastructure to handle future health crises. Education is another area where new opportunities have emerged 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. It is forecast to materialize in the revenue growth of the rPDU market of 4.7 percent in 2021 compared to 2020. Asia is forecast to grow more rapidly followed by the Americas, while the recovery in Europe, the Middle East and Africa (EMEA) is forecast to be relatively slower.
Highlights of the report:
Networked rPDU market revenue is forecast to decline by 4.4 percent and rPDU core revenues are forecast to decline by 1.1 percent in 2020.
Enterprise rPDU market spend is forecast to decline by an average single-digit percentage in 2020, with certain business segments declining by double digits.
Cloud colocation service provider and rPDU spending is forecast to grow by low digits in 2020.
Revenue from the rPDU market is forecast to return to 4.7 percent growth in 2021, with Asia and the Americas growing at higher rates, and EMEA at lower rates.
The global rPDU market is forecast to have a five-year compound annual growth rate (CAGR) from 2018 to 2023 of 1.7 percent.
