Market Research Report
Global Data Center Construction Market - Segmented by Power Construction, Environmental Controls, Tier Type, Industry, Application, Geography - Growth, Trends, and Forecast
|Published by||Mordor Intelligence LLP||Product code||645362|
|Published||Content info||105 Pages
Delivery time: 1-2 business days
|Global Data Center Construction Market - Segmented by Power Construction, Environmental Controls, Tier Type, Industry, Application, Geography - Growth, Trends, and Forecast|
|Published: April 26, 2018||Content info: 105 Pages||
The global data center construction market was valued at USD 17.15 billion in 2017 and is expected to reach a value of USD 27.64 billion by 2023 at a CAGR of 8.21% over the forecast period of 2018-2023. The scope of the report is limited to power construction offered by major players involving utility improvements, electrical panels switch gear, transfer switches, generators, enclosures and cabling, N+1 UPS systems, and data center lighting. While the end users considered in the scope of the report include banking, financial services and insurance, IT and telecommunications, government and defense, healthcare, retail colocation, power & energy, and manufacturing.
A data center is a group of networked computer servers used by organizations for the remote storage, processing, or distribution of large amount of data. Internet of Things (IoT) and cloud adoption have witnessed significant growth over the years owing to the simple financial model, backup, and replication provided by cloud-based systems. This has led to the generation of enormous amounts of data, resulting in a growing requirement for construction of new data centers. The bandwidth created by wearable technologies and data analytics are also expected to increase the need for data centers, thereby driving the data center construction market.
Colocation offers enterprises with the ability to meet business demands at significantly lower costs. Over the years, companies have been identified to lease space in a colocation facility, to avoid costs incurred by the price of establishing a new data center, which is often incredibly cost prohibitive. It has been estimated that around 25% of the cost borne by the company for a new data center comes from spending associated with preliminary planning, designing, and commissioning. To tackle these problems, companies have started investing in data center colocation. This trend is expected to follow over the forecast period owing to the vast array of benefits provided by colocation facilities compared to conventional in-house centers, which is, in turn, expected to drive the data center construction market.
The banking and finance sector is expected to be one of the largest generators of data. Finance and banking structures use data centers to store customer records, employee management transactions, and electronic banking services such as remote banking. Many banks have been identified to maintain their own data centers to regulate and store the enormous amounts of data flowing every day. In recent years, banks have increasingly started deploying new data centers. For instance, the U.S. Bank recently announced its plans to build a USD 250 million data center in Chaska, in a 56,000-square-foot facility. Many banks globally are following suit, which is expected to drive the data center construction market over the forecast period.
North America holds the highest market share owing to high adoption of data centers and rising number of companies over the forecast period. Over the years, the United States has been identified to be one of the fore-runners in the adoption of new technologies. With the rise in big data analytics, companies in that region, to avoid falling short on traditional storage, have been identified to deploy the construction of new data centers and colocation centers to run business analytics. Growing adoption of small and medium-size enterprises as well as home networks in this region is one of the major factors driving the growth of data centers in this region, which is expected to drive data center construction market proportionately. The service industry in the United States has been growing at a robust rate, which in turn is leading to the generation of huge volumes of data. Organizations are increasingly adopting data centers to store and process the acquired data. Moreover, the presence of market incumbents is another factor, which is expected to promote the growth of data center construction market in this region.
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