Data center physical infrastructure revenues grew 6% in Q1

According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center industries, data center physical infrastructure (DCPI) revenues grew 6 percent year-over-year in 1Q 2022, driven by Average Selling Price (ASP) increases as supply chain constraints continued to limit unit shipments. Improvements in the supply chain are forecast to be marginal in the second half of 2022, but continued price realization and increasing unit shipments in 2H 2022 are forecast to drive 9 percent full-year revenue growth.

“Supply chain disruptions have resulted in DCPI vendors passing on higher input costs to channel partners and customers. Managing supply chain and driving price realization have become the defining factors for market growth and individual vendor’s success in 2022,” said Lucas Beran, Principal Analyst at Dell’Oro Group. “While macroeconomic storm clouds are beginning to form, the historically high level of backlog from DCPI vendors gives Dell’Oro Group confidence in its DCPI market forecast of 9 percent in 2022. Any softness in new orders that may be starting to show, likely won’t materialize in sales until 1H 2023. Even so, current indications point to any potential softness being contained to the enterprise market segment.”

Additional highlights from the 1Q 2022 Data Center Physical Infrastructure Quarterly Report:

• Eaton, Riello, and Schneider Electric gained revenue share in 1Q 2022, while Vertiv and Mitsubishi Electric lost share.
• North America, Asia Pacific (excluding China), and China were the fastest growing regions in 1Q 2022. Product growth was broad-based, with shorter sale cycle products such as single-phase UPS, rPDU, and IT Racks growing at high single-digit rates.
• Worldwide DCPI revenue growth is forecast at 9 percent in 2022, driven by double-digit cloud and colocation service provider growth and mid-single-digit enterprise growth.

CT Bureau