DCPI vendor backlogs jump to new historic highs. #pressrelease
June 13, 2024
According to a recently published report from Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, Data Center Physical Infrastructure (DCPI) revenue growth slowed to a mid-single-digit rate in 1Q 2024, as design shifts to support accelerated computing infrastructure and AI workloads need more time to materialize.
Additional highlights from the 1Q 2024 Data Center Physical Infrastructure Quarterly Report:
Eaton, Modine, and Schneider Electric led all vendors in market share gains, while Vertiv lost share.
Revenue growth was broad based, but North America slightly outpaced all other regions. The China DCPI market was the only region to decline, but is expected to return to growth next quarter.
Hardware sales growth broadly slowed, with the exception of Facility Power Distribution, which was the only market segment to grow at a double-digit rate, due to increasing power distribution requirements of AI workloads. Thermal Management growth notably slowed as some colocation end-users are still deploying recently shipped equipment.
Looking ahead, we forecast double-digit revenue growth for the 2024 DCPI market after a small upward revision. We expect this to be weighted towards the second half of the year as physical infrastructure deployments related to AI workloads begin to materialize.
Read the full press release here.
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