Data center physical infrastructure market grows 16% - Dell'Oro

North America, Asia Pacific (excluding China), Europe, and the Middle East and Africa (EMEA) paced market growth in 4Q 2023 with double-digit growth rates. Caribbean and Latin American (CALA) revenues grew at a much lower rate, while the China market was the only region to decline.

A bifurcation in hardware sales became more prominent in 4Q 2023, with product growth such as single-phase UPS, IT racks and rack power distribution notably slowing. Larger system sales, such as Three-phase UPS, Thermal Management and Facility Power Distribution grew at much faster rates.

Looking ahead, we forecast worldwide DCPI market growth to moderate in the first half of 2024, but accelerate through the second half of the year as physical infrastructure deployments related to AI workloads increase.