INDUSTRY INSIGHTS
The strong internet connectivity slowly spreading across various countries and exponential transformation of the e-commerce industries is attributing to the growth of the APAC data center construction market. The growing popularity of Internet-based services, use of smartphones, and social media platforms is revolutionizing the APAC market. The growing focus on establishment of submarine cables by government agencies, telecommunication providers, and enterprises will grow the investment in the construction of new facilities across the APAC market. The growing penetration of internet in countries such as Indonesia, Thailand, Philippines, Vietnam, Cambodia and countries in Pacific Island will boost the demand in the APAC market. The exponential use of desktop systems, smartphone penetration, social media, wearable devices, and connected devices has led to a 50 times increase in data generated in the APAC market.
Colocation providers such as Global Switch, Equinix, Digital Realty, GDS Holdings, ST Telemedia, Telehouse, AirTrunk Operating and Singtel are making significant investments in the APAC market. The growing demand for cloud-based services is creating lucrative opportunities for leading hyperscale operators and cloud hosting service providers in the APAC market. The increasing investments to promote and establish fiber cables, improve rural and urban broadband connectivity, and aid in the establishment of new facilities that expedite technological advancements will transform the APAC data center construction market.
The rising number of M&A activities leading to the investment in millions of dollars towards facilities construction and expansion projects to accommodate the demand for services is promoting the development of the market in APAC. The deployment of edge computing locations after 2020 across multiple countries, especially China and India, to accommodate the data growth will boost revenues in the APAC market. The APAC data center construction market is estimated to generate revenue of around $12 billion by 2023, growing at a CAGR of over 9% during 2017-2023. The report will also provide market size analysis in terms of square feet area and power MW.
MARKET DYNAMICS
The increasing number of submarine fiber cable deployments will propel the growth of the APAC data center construction market. The growing adoption of technologies such as cloud, big data, and IoT is driving the requirement for strong fixed broadband connectivity in the APAC region. Additionally, the government initiatives to improve the wireless connectivity through the deployment of high-speed 4G LTE networks in the APAC market will be major boost for the market growth. The development of submarine fiber cables that can transmit data at higher speeds with reduced latency is attracting new investments in the APAC market. The construction of cloud facilities by internet giants and the need for interconnection services is one of the major driving factors in the APAC region. For instance, Google is involved in more than 10 submarine cable projects that are likely to be operational by 2019, connecting various cities in APAC region. Such projects will propel the development of the APAC data center construction market during the forecast period.
APAC DATA CENTER CONSTRUCTION MARKET
This market research report includes a detailed segmentation of the market by
- Electrical infrastructure
- Mechanical Infrastructure
- Tier standards
- General construction
- Geography
INSIGHTS BY ELECTRICAL INFRASTRUCTURE
Innovations in UPS solutions to improve efficiency to remain a primary focus in the APAC data center construction market
The APAC data center construction market by electrical infrastructure is segmented into UPS systems, generators, transfer switches & switchgear, rack PDU, and other electrical infrastructure. UPS systems held the majority of the market share in 2017, growing at a CAGR of more than 9% during the forecast period. The growing interest among large and mega facilities to procure UPS systems of more than 750 kVA and small and medium facilities are procuring UPS systems with a capacity of less than 500 kVA will augment the growth of the APAC market. The adoption of modern UPS systems with battery monitoring controls to predict the possibility of failure and maintenance needs will propel the development of the APAC data center construction market. The leading vendors are also continually coming up with innovative UPS solutions that increase efficiency and reduce the cost to attract new consumers and gain larger market share.
INSIGHTS BY MECHANICAL INFRASTRUCTURE
Use of water-based cooling systems to continue to grow in the APAC data center construction market during forecast period
The mechanical infrastructure segment in the APAC data center construction market is categorized into cooling systems, rack, and other infrastructure. Cooling systems dominated the market share in 2017 and is expected to grow at a CAGR of around 9% during the forecast period. The increase in rack power density and unfavorable outside environment to support free cooling across many countries in the region is boosting the adoption of water-based
cooling systems in the APAC market. The market is witnessing the adoption of N+1 or N+N redundant cooling among tier III facilities in the APAC market. The top operators are focusing on implementing efficient solutions to reduce their CAPEX and OPEX, conserve space, and reduce
power supply to cooling units in the APAC market. The integration of cooling systems with accessories and system level monitoring controls will transform the APAC data center construction market.
INSIGHTS BY GENERAL CONSTRUCTION
Installation and commissioning services for modular power components to grow in the APAC data center construction market
The APAC data center construction market by general construction is divided into building development, installation and commissioning services, building design, physical security, and DCIM. The installation and commissioning services segment occupied a significant market share in 2017, growing at a CAGR of over 9% during the forecast period. The growing popularity of modern facilities that require installation and commissioning services for power connectivity with the grid, network cabling, and heat transfer mechanism will propel the growth of this segment in the APAC market. The increase in average labor costs and increasing growth in Greenfield facilities will generate higher revenues for installation and commission service providers in the APAC market. The growing focus on reliability, efficiency, and scalability of facilities in the region will create lucrative opportunities for leading players on the APAC market.
INSIGHTS BY TIER STANDARDS
Tier III certification from Uptime Institute to attract consumers in the APAC data center construction market
The tier standards in the APAC data center construction market is classified into Tier I & II, Tier III, and Tier IV. Tier III segmented dominated the market share in 2017, growing at a CAGR of approximately 8% during the forecast period. The designing and deployment of new facilities of Tier III standards with a minimum of N+1 redundancy is attributing to the growth of this segment in the APAC market. The deployment of modular facilities with a minimum redundancy in power and cooling capacity to avoid power fluctuation and outages issue is gaining immense traction in the APAC market. Furthermore, it is estimated that a decline in pricing of efficient infrastructure will reduce the average square feet cost to around $680 in the APAC market during the forecast period.
INSIGHTS BY GEOGRAPHY
Mega facilities deployment in China and Hong Kong to generate revenues in the APAC data center construction market
The APAC data center construction market by countries is segmented into China & Hong Kong, Australia, Singapore, Japan, India, and rest of APAC. China and Hong Kong were the largest revenues generators in 2017, growing at a CAGR of around 10% during the forecast period. The growing number of hyperscale operators, colocation service providers, and cryptocurrency data center operators is driving the growth of the China and Hong Kong. Million dollar investments by telecommunication service providers such as Baidu, Alibaba, China Unicom, China Telecom, and China Mobile will generate the demand for new facilities in the Chinese market. The growing demand for hybrid infrastructure services will also increase the construction of colocation facilities in APAC and encourage regional cloud service providers to establish multiple availability zones. Moreover, the growth of media and content providers (Youku and Letv) in Hong Kong will create lucrative opportunities for leading operators in the APAC data center construction market over the next few years. The data center construction market in APAC market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
Market Segmentation by Electrical Infrastructure
- UPS systems
- Generators
- Transfer Switch and Switchgear
- Rack PDU
- Other Electrical Infrastructure
By Mechanical Infrastructure
- Cooling Systems
- Rack
- Other Infrastructure
By Cooling Systems
- CRAC & CRAH Systems
- Chillers
- Cooling Towers & Dry Coolers
- Economizer & Evaporative Coolers
- Other Cooling Units
By Cooling Technique
- Air-based Cooling Technique
- Liquid-based Cooling Technique
- Water-based Cooling Technique
- Direct Liquid and Immersion Cooling Techniques
By General Construction
- Building Development
- Installation & Commissioning
- Building Design
- Physical Security
- DCIM
By Tier Standard
- Tier I and Tier II
- Tier III
- Tier IV
By Geography
- China & Hong Kong
- Australia
- Singapore
- Japan
- India
- Rest of APAC
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