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Hyperscale Data Center Market - Global Outlook and Forecast 2018-2023

SKU : ARZ181006
  • Published on : November 2018

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This market research report on global hyperscale 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 IT infrastructure (server, storage, and network), 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 general construction (building development, installation and commissioning services, building design, physical security, and DCIM), and by geography (Americas, APAC, and EMEA).

Hyperscale Data Center Market Insights 2023

Hyperscale Data Center Market - Overview

The increasing requirement to build, operate, and maintain facilities process a vast amount of both customer and business data is contributing to the growing demand in the global hyperscale data center market. The growing number of desktop systems, smartphone penetration, social media, wearable devices, and connected devices is resulting in over 50 times of the data generated in the market. The consumer data traffic in emerging nations of the APAC and Middle East regions will augment the growth of the global market over the next few years. The adoption of cloud-based services by enterprises and the increasing use of social media is leading to the construction of datacenters in the market. Hyperscale operators such as Apple and Facebook are expanding their presence worldwide because of the increasing use of their services by consumers. The exponential growth of internet search engine operators such as Google, Baidu, and Microsoft will attribute to the demand for new facilities in the market. Colocation providers are also making significant investments in the construction of new facilities with an area of over 100,000 square feet in the market. The leading operators such as Apple, Facebook, Google, AWS, Microsoft, Alibaba, Baidu, OVH, and China Telecom are investing billions of dollars in constructing new facilities in the global market. The market is also witnessing significant investments in submarine cable projects from service providers such as Google, Facebook, and Microsoft. The colocation providers are targeting edge datacenter  locations for the construction and operation of these facilities, thereby, creating new investment opportunities for leading vendors operating in the global hyperscale data center market.

The availability of renewable energy, land for development, strengthening of its fiber backbone, district heating technique, and reduction in electricity pricing is attracting multiple development projects in the Nordic region in the global market. The increasing adoption of multiple innovative infrastructures to reduce the PUE to 1.3 or less will promote sustainability in the market. The global hyperscale data center market is estimated to generate revenues of over $128 billion by 2023, growing at a CAGR of more than 10% during 2017-2023. The research report also offers market size in square feet area and power capacity in megawatts (MW) across geographies for the forecast period.

Hyperscale Data Center Market Overview and Forecast 2023

Hyperscale Data Center Market - Dynamics

The emergence of innovative concepts such as underwater datacenters and tropical climate datacenters will change the way facilities are developed and operated in the global hyperscale data center market by 2023. The infrastructure providers are investing in various innovations to operate sustainable datacenter environment at reduced CAPEX and OPEX in the global market. In 2018, Microsoft will pilot test large deployment under water at the European Marine Energy Centre in Scotland. This facility is powered by nearby marine renewable energy sources and uses AI-based monitoring systems. The success of this pilot will enable Microsoft to stop constructing large facilities on land and drop facilities into the ocean. Such innovations are aimed at reducing the carbon footprint across the world market. Also, in 2016, the Infocomm Development Authority of Singapore (IDA) started conducting trials to operate datacenters at 38 degrees Celsius. The project was aimed at reducing energy consumption by 40%,  and the success of the projects will eliminate the need for cooling in facilities operated under tropical climatic conditions to a considerable extent. The introduction of such concepts will transform the way datacenters are developed and operated in the global hyperscale data center market during the forecast period.

Hyperscale Data Center Market - Segmentation

This market research report includes a detailed segmentation of the market by IT infrastructure, electrical infrastructure, mechanical infrastructure, general construction, and geography.

Hyperscale data center market share and segments

 

Hyperscale Data Center Market – By IT Infrastructure

The adoption of ODM infrastructure based on the open compute project (OCP) design will experience greater growth among all cloud-based service providers in the global hyperscale data center market

The global hyperscale data center market by IT infrastructure is segmented into server, storage, and network. Server segment dominated the largest market share in 2017, growing at a CAGR of around 12% during the forecast period. The growing adoption of cloud-based technologies and growing construction of cloud facilities are driving the demand for servers in the global market. The leading vendors are introduction innovative infrastructure solutions that are designed to tackle specific workload such as mission-critical and high-performance computing servers. Moreover, the introduction of server systems that are equipped with processors of various architectures such as x86, reduced instruction set computer (RISC), complex instruction set computing (CISC), and explicitly parallel instruction computing (EPIC) increase adoption of servers in the market. Various enterprises are adopting server infrastructure based on ODM and OCP designs will drive the development in the global hyperscale data center market.

The growing popularity of all-flash storage arrays and hybrid storage arrays will contribute to the revenues in the storage systems segment in the global market. The growing need for converged, commodity-based, and hyperconverged storage solutions will continue to increase in the global market. The rising demand for SAN networking namely, NVMe-oF will contribute to the growth of the global hyperscale data center market.

Hyperscale Data Center Market – By Electrical Infrastructure

By 2023, leading providers will be involved in utilizing 100% renewable energy for their datacenter operations in the global hyperscale data center market.

The electrical infrastructure in the global hyperscale data center market is classified into UPS systems, generators, transfer switches & switchgear, rack PDU, and other electrical infrastructure. Rack PDU is the fastest growing segment in the global market, at a CAGR of more than 8% during the forecast period. The growing implementation of intelligent PDU solutions such as metered and switched PDU products is driving the growth of this market segment. The facility operators are investing in the end-to-end monitoring of infrastructure to reduce power consumption and wastage in the global market significantly. Hyperscale operators will be the predominant investors in intelligent rack PDU solutions, these rack PDU solutions cost up to $2,000  contributing to the revenues growth in the global hyperscale data center market. Also, operators have continuously involved in the procurement of renewable energy sources to power their operations. Initiatives such as OCP will also bring multiple innovations to the electrical infrastructure segment during the forecast period. 

Hyperscale Data Center Market – By Mechanical Infrastructure

Operators will invest in reducing the water and power consumption by cooling systems operated in tropical climatic conditions in the global hyperscale data center market

The global hyperscale data center market by mechanical infrastructure is categorized into cooling systems, rack, and other infrastructure. Cooling systems occupied the largest market share in 2017, growing at a CAGR of around 6% during the forecast period. The growing use of indirect evaporative cooling systems which facilitate free cooling of the facility using outside air is primarily driving the growth of this segment in the global market. The use of dual water feeds across facilities with on-site water treatment plants will augment the development of the global market. In 2018, Facebook announced its Singapore Data Center, where the company is planning to use state point liquid cooling (SPLC) system, developed in collaboration with Nortek Air Solutions. The use of innovative cooling systems like SPLC to cool server in tropical climatic conditions will promote sustainability in the global hyperscale data center market. Most of the datacenter involved in the adoption of open rack architecture with approved designs from OCP and Open19 communities. Pump systems, piping units, and valves are the major revenue generators in the other mechanical infrastructure segment in the global hyperscale data center market.

Hyperscale Data Center Market – By General Construction

The use of artificial intelligence to monitor data center will increase in the global hyperscale data center market during the forecast period

The general construction segment in the global hyperscale data center market is divided into building development, installation and commissioning services, building design, physical security, and DCIM. DCIM is the fastest growing segment in the global market, at a CAGR of approximately 16% during the forecast period. There are multiple construction contractors and sub-contractor in the market. A single datacenter project to provide strong revenue growth for these contractors.  Facility operators will focus on the development of a sustainable environment, where the expertise of construction contractors, architectural, and design firms will play a vital role in attaining project contracts.

The increasing number of Greenfield developments with on-site solar and wind farms for renewable energy generation that partially or entirely power operations will increase in the global market. The growing need to protect customer information and data regulation laws is driving the need for physical security systems in the global hyperscale data center market.

Hyperscale Data Center Market – By Geography

Colocation, internet, and cloud service providers across the US and Canada are contributing to the investments in the global hyperscale data center market

The global hyperscale data center market by geography is segmented into Americas, APAC, and EMEA. Americas dominated the majority of the market share in 2017, growing at a CAGR of 7% during the forecast period. The internet giants, cloud service providers, and wholesale colocation providers are investing billions of dollars in the US in the global market. The availability of renewable energy sources and low power cost of around $0.05 per KW in Montreal is attracting various operators constructing new facilities in the Canadian market. The integration of lithium-ion UPS systems, DRUPS, and incorporation of fuel cells will promote sustainability in the market. Moreover, all datacenter developments will involve the use of renewable energy by 2023 in the Americas.  Latin America is expected to become a data center hub, fueling revenues in the global hyperscale data center market.

GDPR in Europe is attracting investments by cloud and colocation service providers such as Equinix, Digital Realty, NTT Communications (e-shelter), Zenium (CyrusOne), AWS, Google, Microsoft, Aruba, STT GDC (VIRTUS), and T-systems. APAC will be the most targeted location for hyperscale development in the market during the forecast period. The increasing investment from both global and local cloud and colocation service providers will boost revenues in the APAC region in the global hyperscale data center market.

The key countries profiled in the report are:

  • US
  • Canada
  • Latin America
  • Western Europe
  • Nordic
  • Eastern Europe
  • MEA
  • China & Hong Kong
  • Singapore
  • Australia
  • Rest of APAC

Key Vendor Analysis

The global hyperscale data center market is contributed by the presence of various cloud service providers. The leading vendors are investing in increasing their product portfolio to gain a larger global market share. The penetration of open source infrastructure solutions namely, ODM infrastructure,  is very high across enterprise cloud-based service providers in the market. The development and supply of mission critical and high-performance infrastructure solutions will increase the level of competition in the global market. The growing need for SDDC solutions will create lucrative opportunities in the global hyperscale data center market over the next few years.

The major vendors in the global hyperscale data center market are:

  • Alibaba Group Holding Limited
  • Apple
  • Amazon Web Service (AWS)
  • Facebook
  • Google
  • IBM
  • Microsoft
  • NTT Communications
  • OVH
  • Tencent

Other prominent vendors include Aruba, Ascenty, China Telecom Global, Digital Realty, Equinix, Chunghwa Telecom (CHT), CloudHQ, Colo-D, CyrusOne, GDS Holdings Ltd, Global Switch, Infomart Data Centers, Oracle, Pi DATACENTERS, Reliance Communications (Global Cloud Xchange), Quality Technology Services (QTS), Sabey Data Centers, SAP, Singtel, Sinnet, SUNeVison (iAdvantage), ST Telemedia Global Data Centres (STT GDC), Teraco Data Environments, T-Systems (Deutsche Telekom), and Vantage Data Center.

Key market insights include

  1. The analysis of global hyperscale data center market provides market size and growth rate for the forecast period 2018-2023.
  2. It offers comprehensive insights into the current industry trends, trend forecast, and growth drivers about the global hyperscale data center market.
  3. The report provides the latest analysis of market share, growth drivers, challenges, and investment opportunities.
  4. It offers a complete overview of market segments and the regional outlook of global hyperscale data center market.
  5. The report offers a detailed overview of the vendor landscape, competitive analysis, and key market strategies to gain competitive advantage.

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