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Global Data Center Market Outlook and Forecast Report 2021-2026

Research and Markets
·8-min read

Dublin, Feb. 23, 2021 (GLOBE NEWSWIRE) -- The "Data Center Market - Global Outlook and Forecast 2021-2026" report has been added to ResearchAndMarkets.com's offering.

In-depth Analysis and Data-driven Insights on the Impact of COVID-19 Included in this Global Data Center Market Report

The data center market by revenue is expected to grow at a CAGR of 4.5% during the period 2021-2026.

The global data center market size has witnessed a significant boost since the outbreak of the COVID-19 pandemic across the globe. The demand for data centers has increased because of the increased access to internet-related services aided by nation-wide lockdowns imposed by governments worldwide.

The COVID-19 pandemic has significantly increased the internet traffic between 25% and 30% during the initial lockdown period (March-April) worldwide, which is 10X times than normal growth (~3% per month). Cloud-based services have observed a spike as organizations, including government bodies, require to transfer, store, and secure confidential data and information. Similarly, the impact of COVID-19 has been unprecedented on the IoT devices market. IoT-enabled devices have witnessed high acceptance for monitoring and surveillance purposes, especially in the healthcare sector.

Data Center Market Segmentation

The global data center market research report includes a detailed segmentation by infrastructure , IT infrastructure, electrical infrastructure, mechanical infrastructure, cooling technique, general construction, tier standards, geography. The IT infrastructure market is growing due to the increasing investment in data centers as well as hyperscale facilities. A majority of revenue is expected to be generated by server systems, followed by storage and network infrastructure during the forecast period. The introduction of artificial intelligence-based infrastructure solutions is influencing the overall market growth.

The adoption of UPS with over 2 MW is high because of the increased construction of large and hyperscale facilities. Hyperscale operators are increasingly purchasing renewable energy sources to power their operations and reduce carbon emissions. To reduce power consumption, service operators are implementing innovative and energy-efficient cooling infrastructure solutions.

The use of free cooling techniques has grown significantly over the last few years in regions that have favorable climatic conditions that can utilize evaporative/adiabatic coolers for data center cooling purposes. The cooling systems market is expected to grow over the next few years because of redundancy and high heat generation at the rack level.

The adoption of cloud-based services and the development of hyperscale facilities are expected to be strong drivers for the global IT infrastructure market. North America is likely to witness an increase in the enterprise adoption of colocation spaces for operations, which, in turn, will increase the revenue for high-performance infrastructure. Artificial Intelligence and IoT will be a strong driving force for IT infrastructure procurement in the market during the forecast period.

Several data center facilities in North America have witnessed the implementation of 2N redundant UPS systems. Hyperscale operators are deploying end-of-rack UPS solutions supporting up to six racks. The increasing procurement of renewable energy will reduce the procurement of generator systems in the region. The UK, Germany, the Netherlands, France, and Ireland are the major contributors to the power infrastructure revenue in Western Europe. To conserve energy, the procurement of OCP-based infrastructure solutions and architecture is significant. The Nordic region is expected to witness the procurement of 48V DC UPS systems. Most facilities in the Nordic region are powered through renewable energy with grid stability of over 95%, which reduced the dependency on redundant generator systems.

The deployment of tall racks of 45U?52U is experiencing strong adoption in North America. Most data centers are designed based on the American Society of Heating, Refrigeration, and Air-conditioning Engineers (ASHRAE) guidelines. Data centers in North America are adopting air- and water-cooled chillers with the economizer mode to facilitate partial cooling of the facility using outside air.

North America has a strong presence of general and sub-contractors. The competition will increase over the next few years. Expertise in developing data centers within a short time (less than one year) will be a key criterion for data center operators to select contractors. Western Europe is the most active market for data center construction. The increase in demand for data centers has multiplied the number of contractors and sub-contractors in the market.

Several Europe-based construction service providers in the region manage several major data center construction projects that include architects and engineering tasks. However, a major challenge for contractors in the region is the non-availability of skilled professionals to manage hyperscale data center projects. The APAC region has a strong presence of both local and global contractors. The average labor cost in several countries, including India, is inexpensive than in the US and Europe.

In 2020, around 15 Tier IV data centers were opened in the US, Belgium, Irelands, Netherlands, Singapore, and Sweden. These facilities generate more revenue, with focused investment on highly efficient cooling systems. The increase in data center build-out announcements from Apple, Facebook, and Google is expected to a major boost to the tier IV market. The global Tier I & Tier II data center market is expected to register a negative CAGR during the forecast.

Over the years, the increased awareness of the use of redundant infrastructure has reduced the market share. A majority of under-developed projects across the globe fall under the Tier III category, which is likely to continue during the forecast period. However, several operators are likely to shift to the Tier IV category based on the growth in rack power density and critical data center applications.

INSIGHTS BY VENDORS

The global data center market share is characterized by the presence of several global and regional vendors, which operating under several verticals - IT, storage, network, electrical, mechanical, and general construction. The IT market witnessed significant growth in revenue contribution from ODM server manufacturers.

HPE, Dell Technologies, dominate the leading revenue share in the server and storage markets. Vendor offerings are concentrated on technologies such as cloud, big data, artificial intelligence, and IoT-based application workloads. However, to gain market share, vendors should target enterprises in the APAC and MEA regions. With a revenue share of around 39%, Cisco dominated the market, and the revenue growth has been aided by strong demand for Application Centric Infrastructure (ACI) product portfolio.

ABB, Eaton, Schneider Electric, and Vertiv are the leading power infrastructure players. Cummins, KOHLER-SDMO, MTU On-Site Energy, and Caterpillar have a strong presence in the generators market.

Market Dynamics

Market Opportunities & Trends

  • 5G To Grow Edge Data Center Investments

  • Growing Procurement Of Renewable Energy

  • Innovative Data Center Technologies

  • Innovative Ups Battery Technology

  • Software-Defined Power & Data Center Infrastructure Automation

  • Ai Promotes Liquid Immersion & Direct-To-Chip Cooling Adoption

  • Rise of QLC Nand Flash Drives

  • Increase In Adoption Of 200/400 GBE Switch Ports

  • Increasing Adoption Of Hyperconverged & Converged Infrastructure Platforms

Market Enablers

  • COVID-19 Boosts Data Center Demand

  • Cloud Adoption Drives The Data Center Market

  • Snowballing Demand For Big Data & IOT Investments

  • Colocation Investment Continue To Rise

  • M&AS To Fuel Data Center Growth

  • Increasing Construction Of Hyperscale Data Centers

  • Availability Of Power Resources & Tax Incentives

Market Restraints

  • Rising Carbon Emission From Data Centers

  • Increase In Power & Network Outages

  • Location Constraints For Data Center Construction

  • Lack Of Skilled Workforce

  • Security Challenges In Data Centers

Key Data Center Critical (IT) Infrastructure Providers

  • Cisco

  • Dell Technologies

  • Hewlett Packard Enterprise (HPE)

  • Huawei

  • IBM

  • Inspur Group

Key Data Center Support Infrastructure Providers

  • ABB

  • Eaton

  • Rittal

  • Schneider Electric

  • STULZ

  • Vertiv

  • Caterpillar

  • Cummins

Key Data Center Contractors

  • AECOM

  • Bouygues

  • DPR Construction

  • Holder Construction

  • Jacobs Engineering

  • Mercury Engineering

  • M+W Group

Key Data Center Investors

  • Apple

  • Amazon Web Services (AWS)

  • CyrusOne

  • Digital Realty

  • Equinix

  • Facebook

  • GDS Holdings

  • Google

  • Microsoft

  • NTT Communications

Other Prominent Critical (IT) Infrastructure Providers

  • Arista

  • Atos

  • Broadcom

  • Extreme Networks

  • Hitachi Vantara

  • Inventec

  • Juniper

  • Lenovo

  • NEC

  • NetApp

  • Oracle

  • Pure Storage

  • Quanta Cloud Technology (Quanta Computer)

  • Super Micro Computer

  • Wistron (Wiwynn)

Other Prominent Data Center Support Infrastructure Providers

  • Airedale Air Conditioning

  • Asetek

  • Alfa Laval

  • Altima Technologies

  • Assa Abloy

  • Bosch Security Systems

  • The Condair Group

  • Delta Group

  • Green Revolution Cooling (GRC)

  • Hitech

  • KOHLER (SDMO)

  • Legrand

  • Nlyte Software

  • Rolls Royce Power Systems AG

  • Mitsubishi Electric Corporation

  • Socomec Group

  • Trane

  • ZincFive

Other Prominent Data Center Contractors

  • Arup Group

  • Cap Ingelec

  • Corgan

  • CSF Group

  • Faithful+Gould

  • Fluor Corporation

  • Fortis Construction

  • Gensler

  • Gilbane Building CO.

  • HDR Architecture

  • ISG

  • Jones Engineering

  • Kirby Group

  • KKR Investment Group (Aceco TI SA)

  • Larsen & Toubro (L&T)

  • Linesight

  • Mace Group

  • Morrison Hershfield

  • Mortenson Construction

  • Red-Engineering

  • Structure Tone

  • Syska Hennessy Group

  • Winthrop

Other Prominent Data Center Investors

  • 21VIANET (Century Internet Data Center)

  • Africa Data Centres

  • Canberra Data Centres

  • Cologix (COLO-D)

  • Colt Data Centre Services (Colt DCS)

  • Compass Data Centers (Root Data Center)

  • COPT Data Center Solutions

  • CoreSite Realty

  • Etisalat Group

  • Global Switch

  • Keppel DC

  • NEXTDC

  • QTS Realty Trust

  • Scala Data Centers

  • Shanghai Athub

  • ST Telemedia Global Data Centres (STT GDC)

  • Tenglong Holdings Group (Tamron)

  • Teraco Data Environments

  • Turkcell

  • Vantage Data Center

For more information about this report visit https://www.researchandmarkets.com/r/76dlqz

CONTACT: CONTACT: ResearchAndMarkets.com Laura Wood, Senior Press Manager press@researchandmarkets.com For E.S.T Office Hours Call 1-917-300-0470 For U.S./CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900