South Korean battery makers' combined research and development (R&D) investment this year has climbed over 12 per cent on-year despite a slowdown in global demand for electrified vehicles, industry data showed on Sunday.
Global expenditure on storage and compute infrastructure products for cloud infrastructure decreases 2.4 percent year over year (YoY) in the second quarter of 2021 to $16.8 billion, as per the new reports.
This spending down also includes dedicated and shared environments.
This decrease comes after six quarters of YoY growth, and most notably compares to the 39.1 percent annual growth seen by the market in the second quarter (Q2) last year, when the world just entered the pandemic, said the report by the International Data Corporation (IDC).
Investments in non-cloud infrastructure, however, increased 3.4 percent in Q2 to $13.4 billion, recovering from a 7.2 percent decline in Q2 2020.
“Despite weakness in Q2 2021, IDC is forecasting cloud infrastructure spending to grow 12 percent to $74.3 billion for 2021, while non-cloud infrastructure is expected to grow 2.7 percent to $58.9 billion after two years of declines,” the report mentioned.
The top companies in the global Cloud infrastructure market are Dell Technologies (leading with 15.5 percent market share), HPE/H3C, Inspur, Lenovo, and Huawei.
Shared cloud infrastructure is expected to grow by 11.1 percent YoY to $51.4 billion for the full year and spending on dedicated cloud infrastructure is expected to grow 14.1 percent to $22.8 billion for the full year.
Weakness in year-over-year demand from public cloud service providers comes after an exceptionally strong Q2 2020, in which spending increased 55.5 percent driven by the spike in demand for cloud services in the first months of the pandemic.
IDC expects to see continued strong demand for shared cloud infrastructure with shared cloud infrastructure spending surpassing non-cloud infrastructure spending by 2022.
(With IANS inputs)