According to the new research report published by The Insight Partners, titled “Data Center Construction Market- Global Analysis and Forecast to 2027”, the global data center construction market is expected to reach US$ 89.9 billion in 2027, registering a CAGR of 8.4% during the forecast period 2019 to 2027.
In 2018, North America accounted for the largest revenue share of little more than one third of the total market share, followed by Europe.
The growth of data center construction is also highly influenced by the partnership between government and enterprises directed towards reduction of carbon footprints. Data center are now becoming a key assets contributing in the enhancement of a country’s economy and thus, government all across the globe are supporting and offering services for both local as well as global enterprises.
Data centers these days have become more of the strategic asset than a mere office back – support. The historic bubble burst of big data and artificial intelligence led to massive shift from on – premises data centers to cloud – based database management systems. Presently there are millions of data centers across the globe and the number is anticipated go beyond the count of 8 million in the year 2017. Furthermore, strategic events such as, mergers and acquisitions in the field of data centers is a trend that’s on pace to continue. With the burgeoning demand for robust and resilient data centers the end users are focusing more upon the data center infrastructure, and therefore the data center construction market is expanding vigorously across the globe. Additionally, the data center RIETs are possessed to have impressive return on investment as compared to other categories of funds that are accomplishing more in single digits.
The exponential growth in the cloud computing has resulted in generated robust demand for data centers. Since the emergence of massive hyper-scale contracts for wholesale data centers during early 2016, it has been predicted that the trend would further drive the data center construction market. Furthermore, the hyper-scale internet enterprises, which also comprise some of the major cloud computing platforms, in the first quarter of 2018 had invested ~ US$ 27 Bn in CapEX. In the year 2018, several tech giants expanded/re-architected their data centers in order to meet their data storage and processing needs. For instance, DropBox had re-furbished its cloud in order to utilize higher-density storage. Besides, Google in Netherlands had bought 173 acres of land as it continued to explore its opportunities to build more data centers throughout European region.
Key findings of the study:
- From a growth perspective, the Asia-Pacific region is anticipated to witness a lucrative CAGR growth rate of 10.2% during the forecast period
- Based on tier standard, the tier 3 data center is projected to witness significant lucrative profitable opportunities with projected CAGR growth rate of 8.2%
- Based on industry vertical, the telecom, media & entertainment segment is projected to grow with a CAGR of 8.9%
India’s massive population base coupled with various government-led digital initiatives are likely to boost growth in the public cloud services market. The second largest country by mobile internet users, India’s internet economy is projected to double by 2020. Rising adoption of modular data center is one of trend identified in the country. Increasing energy cost and less energy consumption by modular data centers is the key factor influencing the adoption of modular data center in India. Also, India being a developing economy, many new companies are entering into the market with the need of cost-efficient data center structures. Thus, modular data center due to its cost-effectiveness is another reason for the growth in the market. Another reason is the insufficient availability of power in many states of India resulting in companies to deploy modular data storage systems.
The industry landscape chapter gives a brief knowledge about the various product development, partnerships, expansion, merger and acquisition, and joint ventures strategies implemented by the company. With all these strategies the companies enhance their product offerings and footprint globally across all industries, therefore boosting the annual growth of respective companies. The maximum percent of market initiatives followed by the companies is partnerships, and expansions which was observed in the forecast years. The market initiatives strategy which includes have 56% partnerships, and expansions of the total strategies adopted by the companies. Similarly, new product development was observed to have about 44% of the total strategies.
Email Id: email@example.com