This market research report on global data center market offers analysis on market size & forecast, market share, industry trends, growth drivers, and vendor analysis. The market study also includes insights on segmentation by electrical infrastructure (UPS systems, generators, transfer switches & switchgear, rack PDU, and other electrical infrastructure), by mechanical infrastructure (cooling systems, rack, and other infrastructure), by IT infrastructure (server, storage, and network), by tier standard (Tier I & II, Tier III, and Tier IV), by general construction (building development, installation and commissioning services, building design, physical security, and DCIM), and by geography (North America, Europe, APAC, Latin America, and MEA).
Key highlights of global data center market:
- The major drivers of data center market growth are increase in data, rising number of social media users, connected reality, and higher penetration of smart devices.
- Innovations in cooling systems, development of tropical and underwater facilities, and battery technology is expected to revolutionize the market landscape.
- Renewable energy source contribute to the mega data center development. Initiatives like RE100 will play a role in the use of renewable energy among data centers.
- The investments in more than 30 submarine cable projects will majorly boost data center development across developing countries, specifically in the APAC region.
- Countries such as the US, the UK, France, Germany, China, and Japan will be the major contributor towards the adoption of high-performance infrastructure that enables processing of mission-critical workloads.
Data Center Market - Overview
The increasing focus in the adoption of advanced technologies such as cloud-based services and IoT will augment the growth of the global data center market. The construction of hyperscale facilities spanning with an area of over 200,000 square feet across the globe will create lucrative opportunities for leading vendors operating in the global data center market. Companies such as Facebook, Google, Amazon Web Services (AWS), and Microsoft are amongst the largest companies focusing onthe development of modular and hyperscale datacenter construction facilities. Colocation providers are investing millions of dollars and are focusing on the APAC and Middle East regions towards the deployment of new facilities. The increasing investments towards the development of a digital economy by laying submarine fiber cables, improving rural and urban broadband connectivity, and aiding in the establishment of new facilities that enable technological advancements will drive the demand in the global data center market. The extensive use of 4G LTE technology and upcoming 5G rollouts will increase the internet penetration and drive the growth of the global data center market. The emergence of edge computing is one of the primary factors fostering facilities development in secondary data center markets across the globe. The extensive use of services such as cloud, big data, IoT and artificial intelligence is prompting operators to adopt high-performance mission critical IT infrastructure in the global data center market.
The increasing efforts to reduce power consumption, carbon emissions, and promote operational efficiency will attribute to the adoption of energy-efficient infrastructure in the global data center market. The leading vendors are investing in development of design innovation and implementation of advanced cooling systems is propelling the growth of the data center market. The global data center market is estimated to reach revenues of around $174 billion by 2023, growing at a CAGR of approximately 4% during the forecast period. The research report also offers market size in square ft area and power capacity in megawatts (MW) across geographies.
Data Center Market - Dynamics
The adoption of hyper converged infrastructure will have a higher impact on the growth of global data center market because it enables operating software defined datacenter (SDDC) environments. Most of the vendors in the market are involved in innovating its hyper converged infrastructure (rack scale system) offerings that include necessary hardware and software to process workloads with added simplicity, flexibility, scalability and affordability. Several enterprises are focusing on the adoption of colocation spaces comprising 1-10 rack systems, will prefer to procurement of converged or hyper converged systems. However, it is dependent on the cost of these systems and the operational needs. The use of these systems can reduce the IT administrative tasks considerably. Predominant use case of hyper converged infrastructure is virtual desktop infrastructure (VDI) solutions. However, the use of these platforms for other workloads, especially in a hybrid cloud environment is growing rapidly. Increase deployment of cloud workloads such as artificial intelligence (AI), IoT, and big data will aid the growth of converged and hyper converged infrastructure in the global data center market during the forecast period.
Data Center Market - Segmentation
This market research report includes a detailed segmentation of the market by electrical infrastructure, mechanical infrastructure, IT infrastructure, tier standard, general construction, and geography.
Data Center Market – By Electrical Infrastructure
Increase in deployment of fuel cells might have a major negative impact on the global data center market
The global data center market by electrical infrastructure is divided into UPS systems, generators, transfer switches & switchgear, rack PDU, and other electrical infrastructure. UPS systems dominated the market size in 2017, growing at a CAGR of more than 6% during the forecast period. The leading infrastructure providers are procuring modular rack level UPS systems that can support only that infrastructure with a capacity of up to 40 kW in the global data center market. Moreover, the implementation of UPS systems per data hall with capacity of around 2-3MW per hall to provide redundant backup power during an outage will attribute to the growth of this segment in the global data center market. The top operators are investing in the development of innovative UPS systems to reduce power wastage during conversion, improve their efficiency, and lower the OPEX through lesser maintenance cost. The cost of procuring lithium-ion UPS systems will continue to decline during the forecast period, growing the market for facilities UPS systems in the global data center market.
Data Center Market – By IT Infrastructure
Demand for mission-critical servers, all-flash arrays, hybrid storage arrays, 25/50GbE Ethernet switch ports will grow in the global data center market during forecast period
The IT infrastructure segment in the global data center market is classified into server, storage, and network. The server infrastructure occupied majority of the market share in 2017, growing at a CAGR of around 2% during the forecast period. The top operators are focusing on adoption of server infrastructure that best suit their workload needs. The selection of server infrastructure primary depends on factors such as form factors, energy consumption, and virtualization technologies in the global market. In the server segment, the processor based on x86 architecture dominates the data center market with around 85% of the share. The vendors are offering servers suitable for cloud infrastructure comprising multicore processors, and high capacity memory to grow it the adoption rate in the global data center market. The companies also prefer severs that can enable them to reduce space in the facilities environment meanwhile providing higher performance. The adoption of server infrastructure based on open community project (OCP) designs will attribute to the growth of IT infrastructure in the global data center market. This research report also includes market size analysis on hard disk drives (HDD), solid state drives (SSD), all flash array systems, hybrid array systems, and shipment of server and network switches (1/10/25/40/50/100 GbE).
Data Center Market – By Mechanical Infrastructure
Free cooling technique will grow in the US and European Continent, where APAC region will be dominated by water-based cooling techniques in the global data center market
The global data center market by mechanical infrastructure is segmented into cooling systems, rack, and other infrastructure. Cooling systems segment to dominate the market share in 2017, growing at a CAGR of over 5% during the forecast period. The use of indirect evaporative cooler and air or water-side economizers across countries with colder climatic conditions will propel the growth of this segment in the global data center market. The integration of 2N redundant cooling systems across Tier III facilities will revolutionize the global market. The leading vendors are offering Energy Star certified systems with in-built redundant cooling capacity to attract customers in the market. The operational metrics such as power usage effectiveness (PUE), water-usage effectiveness (WUE), and carbon usage effectiveness (CUE) are gaining immense importance in the global data center market.
Data Center Market – By General Construction
Design of sustainable facilities environment with PUE of less than 1.3 coupled with integration of AI and remote monitoring to grow in the global data center market
The general construction segment in the global data center market is categorized into building development, installation and commissioning services, building design, physical security, and DCIM. Physical security segment occupied a considerable market share in 2017, growing at a CAGR of over 9% during the forecast period. The installation of security systems that comprise of sensors that are integrated with the existing DCIM solutions for real-time remote monitoring benefits will propel the growth of this segment in the global market. The facilities operators are opting for analytics of video surveillance recording and protecting facilities from EMP and lightning during natural disasters in the global market. The integration of robot monitoring systems with sensor and video surveillance in various facilities across the world will propel the growth of the global data center market.
Data Center Market – By Tier Standards
The construction of Tier III facilities dominates the market and flexible design pattern are being followed to add more redundancy on support infrastructures in the global data center market
The global data center market by tier standards is segmented into Tier I & II, Tier III, and Tier IV. Tier III standard facilities dominated the market share in 2017, growing at a CAGR of more than 5% during the forecast period. Most of the new facilities deployment in the market are of Tier III standards with a minimum of N+1 redundancy. The operators are also offering facilities that can be reconfigured with up to 2N+1 redundancy as the demand arises to sustain the competition in the global data center market. The investment in Tier III facilities is about $780 per square feet, where the construction cost varies based on the facility location. This entirely depends on the redundancy adopted by infrastructure, with a minimum of N+1. The construction of Tier IV facilities is expected to experience significant growth in the global data center market during the forecast period.
Data Center Market – By Geography
Latin America and MEA will experience higher compound annual growth rate in the global data center market during forecast period
The geographical segmentation in the global data center market is classified into North America, Europe, APAC, Latin America, and MEA. Americas occupied the largest market share in 2017, growing at a CAGR of over 2% during the forecast period. The billion dollar investments by colocation providers, hyperscale operators, enterprises, and government agencies is propelling the growth of the Americas in the global data center market. The US dominates the market when it comes to adoption of innovative infrastructure solutions such as all-flash arrays, hybrid arrays and hyperconverged infrastructure solutions. The increasing interest to procure renewable energy sources and low power cost sources will encourage operators to invest in the development of the data center market in Americas. The adoption of 2N redundancy configuration will grow among UPS systems and PDUs, while generators and cooling systems are still adopting N+1 or N+N configurations in the Americas. Innovations in power sources such as lithium-ion UPS systems, DRUPS, and fuel cells will propel the development of this region in the global data center market.
Key Countries Profiled
- Western Europe
- Nordic Region
- Eastern Europe
- China & Hong Kong
Key Vendor Analysis
The global data center market comprises of various vendors who control the level of competition. The market comprises of multiple participants in the vendor space. The vendors in this report is categorized in to three participants namely,
- Datacenter Critical (IT) Infrastructure Providers: It include companies that sell IT infrastructure such as server, storage and network products.
- Datacenter Support Infrastructure Providers: It includes vendor involved in providing power, cooling, rack, security, and infrastructure management products.
- Data Center Construction Contractors: It include general contractors, and sub-contractors involved in design, project management, installation and commissioning services of facilities infrastructure
Multiple innovations are carried out by vendors operating in each space. IT infrastructure vendors are focusing on providing solutions that best suits business operational environments. Power players are focusing on efficiency, cooling players focusing on reducing power consumption, and architectural firms are incorporating innovative design to gain larger global data center market share over the next few years.
The major vendors in the global data center market are:
- By IT Infrastructure Providers
- Dell Technologies
- By Support Infrastructure Providers
- Schneider Electric
- By Facilities Operators
- DPR Construction
- HDR Architecture
- Holder Construction
- Jacobs Engineering Group
- Mercury Engineering
- M+W Group
Other prominent vendors include Arista, Atos, Broadcom, Extreme Network, Hitachi Vantara, Inspur Group, Inventec, Juniper, Lenovo, NEC, NetApp, Oracle, Pure Storage, Quanta Computer, Super Micro Computer, Wistron, Airedale Air Conditioning, Alfa Laval, Altima Technologies (NetZoom), Bosch Security Systems (Robert Bosch), Condair Group, Delta Group, GE, Legrand, Nlyte Software, Mitsubishi Electric Corporation, MTU On Site Energy, Socomec Group, Trane (Ingersoll Rand), Arup Group, Cap Ingelec, Corgan, CSF Group, Fluor Corporation, Fortis Construction, Gensler, Gilbane Building Co., Jones Engineering Group, KKR Investment Group, Morrison Hershfield, Mortenson Construction, Structure Tone, Syska Hennessy Group, and Whiting-Turner Contracting
Key market insights include
- The analysis of global data center market provides market size and growth rate for the forecast period 2018-2023.
- It offers comprehensive insights on current industry trends, trend forecast, and growth drivers about the global data center market.
- The report provides the latest analysis of market share, growth drivers, challenges, and investment opportunities.
- It offers a complete overview of market segments and the regional outlook of global data center market.
- The report offers a detailed overview of the vendor landscape, competitive analysis, and key market strategies to gain competitive advantage.
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