Data Centers: Global Industry Outlook & Forecast 2018-2023 - Adoption of Hyperconverged Infrastructure to Have a High Impact on Growth

DUBLIN, July 5, 2018 /PRNewswire/ --

The "Data Center Market - Global Outlook and Forecast 2018-2023" report has been added to ResearchAndMarkets.com's offering.

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 1 & 2, Tier 3, and Tier 4), 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).

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 market. Companies such as Facebook, Google, Amazon Web Services (AWS), and Microsoft are amongst the largest companies focusing on the development of modular and hyperscale data center 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 market. The extensive use of 4G LTE technology and upcoming 5G rollouts will increase the internet penetration and drive the growth of the global 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 market. The leading vendors are investing in development of design innovation and implementation of advanced cooling systems is propelling the growth of the 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.

Dynamics

The adoption of hyperconverged infrastructure will have a higher impact on the growth of global data center market because it enables operating software defined data center (SDDC) environments. Most of the vendors in the market are involved in innovating its hyperconverged 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 hyperconverged 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 hyperconverged 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 hyperconverged infrastructure in the global data center market during the forecast period.

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.

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 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 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 USPs systems in the global 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 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).

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 market. The integration of 2N redundant cooling systems across Tier 3 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.

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.

By Tier Standards

The construction of Tier 3 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 1 & 2, Tier 3, and Tier 4. Tier 3 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 3 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 3 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 4 facilities is expected to experience significant growth in the global data center market during the forecast period.

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 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 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 Topics Covered

1 Research Methodology

2 Research Objectives

3 Research Process

4 Report Coverage
4.1 Market Definition
4.2 Base Year
4.3 Scope of Study

5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation

6 Market at a Glance

7 Introduction
7.1 Internet and Data Growth
7.2 Data Center Site Selection Criteria
7.3 Data Center Construction Project Flow
7.4 Electricity Prices Across Major Data Center Locations
7.5 Submarine Fiber Cable Projects

8 Market Dynamics
8.1 Market Growth Enablers
8.2 Market Growth Restraints
8.3 Market Opportunities & Trends

9 Global Data Center Market Size & Forecast
9.1 Market Overview
9.2 Market Size & Forecast
9.3 Porter's Five Forces Analysis

10 Global Market by Infrastructure Type
10.1 Market Overview
10.2 Global Market by IT Infrastructure
10.3 Global Market by Electrical Infrastructure
10.4 Global Market by Mechanical Infrastructure
10.5 Global Market by General Construction

11 Global Market by IT Infrastructure
11.1 Server Infrastructure
11.2 Storage Infrastructure
11.3 Network Infrastructure

12 Global Market by Electrical Infrastructure
12.1 Uninterruptible Power Suppystemy (U) SYSTEMS
12.2 Generators
12.3 Transfer Switches & Switchgears
12.4 Rack Power Distribution Units
12.5 Other Electrical Infrastructure

13 Global Market by Mechanical Infrastructure
13.1 Market Overview
13.2 Cooling Systems
13.3 Racks
13.4 Other mechanical Infrastructure

14 Global Market by Cooling Systems
14.1 CRAC and CRAH Units
14.2 Chiller Units
14.3 Cooling Towers and Dry Coolers
14.4 Economizers and Evaporative Coolers
14.5 Other Cooling Units

15 Global Market By Cooling Technique
15.1 Air-Based Cooling Techniques
15.2 Liquid-Based Cooling Techniques

16 Global Market by Liquid Cooling Techniques
16.1 Water-based Cooling Techniques
16.2 Direct Liquid and Immersion Cooling Techniques

17 Global Market By General Construction
17.1 Building Development
17.2 Installation and commissioning Services
17.3 Building Design
17.4 Physical Security
17.5 Data Center Infrastructure Management (DCIM)

18 Global Data Center Market Segmentation By Tier Standards
18.1 Overview of Tier Standards
18.2 Data Center Tier Cost Analysis
18.3 Tier 1 & 2
18.4 Tier 3
18.5 Tier 4

19 Global Data Center Market by Geography
19.1 Market Overview

20 Data Center Market in Americas
20.1 Market Overview
20.2 Market Size & Forecast
20.3 Data Center Market in Americas By Area
20.4 Data Center Market in Americas by Power Capacity

21 Data Center Market in US
21.1 Market Overview
21.2 Market Size & Forecast
21.3 Market by Type of Infrastructure
21.4 Key Market Trends, Enablers, & Restraints
21.5 Site Selection Criteria Analysis in US

22 Data Center Market in Canada
22.1 Market Overview
22.2 Market Size & Forecast
22.3 Market by Type of Infrastructure
22.4 Key Market Trends, Enablers, & Restraints
22.5 Site Selection Criteria Analysis in Canada

23 Data Center Market in Latin America
23.1 Market Overview
23.2 Market Size & Forecast
23.3 Market by Type of Infrastructure
23.4 Key Market Trends, Enablers, & Restraints
23.5 Site Selection Criteria Analysis in Latin America

24 Data Center Market In EMEA
24.1 Market Overview
24.2 Market Size & Forecast
24.3 Market By Square Feet Area
24.4 Market by Power Capacity

25 Data Center Market in Western Europe
25.1 Market Overview
25.2 Market Size & Forecast
25.3 Market by Type of Infrastructure
25.4 Key Market Trends, Enablers, & Restraints
25.5 Site Selection Criteria Analysis in Western Europe

26 Data Center Market in Nordic Region
26.1 Market Overview
26.2 Market Size & Forecast
26.3 Market by Type of Infrastructure
26.4 Key Market Trends, Enablers, & Restraints
26.5 Site Selection Criteria Analysis in Nordic Region

27 Data Center Market in Eastern Europe
27.1 Market Overview
27.2 Market Size & Forecast
27.3 Market by Type of Infrastructure
27.4 Key Market Trends, Enablers, & Restraints
27.5 Site Selection Criteria Analysis in Eastern Europe

28 Data Center Market in MEA
28.1 Market Overview
28.2 Market Size & Forecast
28.3 Market by Type of Infrastructure
28.4 Key Market Trends, Enablers, & Restraints
28.5 Site Selection Criteria Analysis in MEA

29 Data Center Market In APAC
29.1 Market Overview
29.2 Market Size & Forecast
29.3 Market By Square Feet Area
29.4 Market by Power Capacity

30 Data Center Market in China & Hong Kong
30.1 Market Overview
30.2 Market Size & Forecast
30.3 Market by Type of Infrastructure
30.4 Key Market Trends, Enablers, & Restraints
30.5 Site Selection Criteria Analysis in China & Hong Kong

31 Data Center Market in Australia
31.1 Market Overview
31.2 Market Size & Forecast
31.3 Market by Type of Construction
31.4 Key Market Trends, Enablers, & Restraints
31.5 Site Selection Criteria Analysis in Australia

32 Data Center Market in Singapore
32.1 Market Overview
32.2 Market Size & Forecast
32.3 Market by Type of Infrastructure
32.4 Key Market Trends, Enablers, & Restraints
32.5 Site Selection Criteria Analysis in Singapore

33 Data Center Market by Rest of APAC
33.1 Market Overview
33.2 Market Size & Forecast
33.3 Market by Type of Infrastructure
33.4 Key Market Trends, Enablers, & Restraints
33.5 Site Selection Criteria Analysis in Rest of APAC

34 Competitive Scenario
34.1 IT Infrastructure
34.2 Electrical Infrastructure
34.3 Mechanical Infrastructure
34.4 General Construction

35 Key Data Center Critical (IT) Infrastructure Providers
35.1 Hewlett Packard Enterprise (HPE)
35.2 Cisco
35.3 Dell Technologies
35.4 IBM
35.5 Huawei

36 Key Data Center Support Infrastructure Providers
36.1 ABB
36.2 Eaton
36.3 Rittal
36.4 Schneider Electric
36.5 STULZ
36.6 Vertiv
36.7 Caterpillar
36.8 Cummins

37 Key Data Center Contractors
37.1 AECOM
37.2 DPR Construction
37.3 HDR Architecture
37.4 Holder Construction
37.5 Jacobs Engineering Group
37.6 Mercury Engineering
37.7 M+W Group

38 Other Prominent Critical Infrastructure providers
38.1 Arista
38.2 Atos
38.3 Broadcom
38.4 Extreme Network
38.5 Hitachi Vantara
38.6 Inspur
38.7 Inventec
38.8 Juniper
38.9 Lenovo
38.1 NEC
38.11 NetApp
38.12 Oracle
38.13 Pure Storage
38.14 Quanta Computer (QCT)
38.15 Super MicroComputer
38.16 Wistron (Wiwynn)

39 Other Prominent Support Infrastructure providers
39.1 Airedale Air Conditioning
39.2 Alfa Laval
39.3 Altima Technologies (NetZoom)
39.4 Bosch Security Systems (Robert Bosch)
39.5 Condair Group
39.6 Delta Group
39.7 General Electric (GE)
39.8 Legrand
39.9 Nlyte Software
39.1 Mitsubishi
39.11 MTU ON SITE ENERGY (Rolls-Royce Power Systems AG)
39.12 Socomec
39.13 Trane (Ingersoll Rand)

40 Other Prominent Construction Contractors
40.1 Arup Group
40.2 Cap Ingelec
40.3 Corgan
40.4 CSF Group
40.5 Fluor Corporation
40.6 Fortis Construction
40.7 Gensler
40.8 Gilbane Building Co.
40.9 Jones Engineering
40.10 KKR Investment Group (Aceco TI S.A.)
40.11 Morrison Hershfield
40.12 Mortenson Construction
40.13 Structure Tone
40.14 Syska Hennessy Group
40.15 Whiting-Turner Contracting Co.

41 Report Summary
41.1 Key Takeaways
41.2 Qualitative Summary: Global Data Center Market
41.3 Quantitative Summary: Global Data Center Market

42 Appendix
42.1 Abbreviations

For more information about this report visit https://www.researchandmarkets.com/research/7wcvbx/data_centers?w=5

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