Dublin, Feb. 21, 2020 (GLOBE NEWSWIRE) -- The "Data Center Market in APAC - Industry Outlook and Forecast 2020-2025" report has been added to ResearchAndMarkets.com's offering.
The APAC data center market is expected to grow at a CAGR of over 3% during the period 2019-2025.
Key Market Insights
- The report provides the following insights into the data center market in APAC during the forecast period 2020-2025.
- It offers comprehensive insights into current industry trends, forecast, and growth drivers in the APAC data center market.
- The report provides the latest analysis of share, growth drivers, challenges, and investment opportunities.
- It offers a complete overview of segments and the regional outlook of the APAC data center market.
- The study offers a detailed overview of the vendor landscape, competitive analysis, and key strategies to gain competitive advantage.
The APAC data center market is witnessing steady growth with continued investments from hyperscale and cloud service providers. In 2019, China and Hong Kong led the market in terms of data center development, followed by India, Australia, Japan, and Singapore. Apart from these countries, Indonesia, Thailand, and Malaysia made a sizable contribution toward growth. The implementation of 5G has commenced in several countries, which will have a significant impact on the market with telecommunication providers partnering with service providers in establishing edge data centers throughout the forecast period.
The market is also witnessing significant investments in submarine cable projects from telecommunication service providers, and government entities with hyperscale operates are continuing to invest millions in improving submarine connectivity across regions aiding in the growth.
The introduction of artificial intelligence and machine learning workloads is expected to contribute over 40% in the infrastructure investment in APAC by 2025. Artificial intelligence and machine learning workloads will increase the demand for liquid-immersion and direct-to-chip cooling techniques that can support the density of up to 200 kW. Over 30% of Australian enterprises are involved in the use of AI-based infrastructure solutions as experimental as well as production workloads.
The average size of a facility in the APAC region has increased considerably in the last two years. Several operators are involved in land acquisitions for future development, which, in turn, is propelling growth. ODM infrastructure solutions and all-flash storage arrays contribution to the market will continue to grow.
APAC Data Center Market: Segmentation
This research report includes detailed segmentation by IT infrastructure, electrical infrastructure, mechanical infrastructure, general construction, tier standards, and geography.
With the adoption of IoT, artificial intelligence, and big data analytics, the demand for high-performance computing infrastructure is increasing. The demand for supercomputers is also increasing with the adoption increase in investment towards cryptocurrency mining. Moreover, the increasing development of facilities in China and Hong Kong and the implementation of a high-speed 5G network will boost the data center network market. Over 50% of the business IT budget is spent on the migration to cloud-based services in Australia, with IaaS spending leading the chart followed by SaaS. The Australian market will also witness the increased demand for managed data center services. IT infrastructure spending will be dominated by cloud-service providers.
The increasing adoption of IT infrastructure is a major driver in the data center market in India, with high adoption of servers, storage, and networking infrastructure. Around 70% of startups in India are adopting IoT in their business. Healthcare and manufacturing are popular verticals attracting a lot of investor interests. The IT Infrastructure market in Japan is gaining traction with the increasing popularity of cloud-based services, IoT, and AI. In Japan, the majority of facilities are having blade types of servers developed for the high-density computing environment. The increasing usage of social media platform in the region will lead to the development of new facilities to store data, which increase the demand for high-capacity storage solutions.
The construction of data centers with power capacity over 20 MW will increase the demand for high-capacity electrical infrastructure. Most facilities support rack power density of 510 kW; however, it is expected that new facilities will support a capacity of up to 20 kW during the forecast period. Multiple facilities with a power capacity of more than 10 MW are being implemented in Australia. Data center providers are investing in DRUPS systems with a capacity of around 1,500 kVA.
Service providers are featuring lithium-ion batteries, which are likely to increase adoption in the market. The market in India has witnessed the installation of energy-efficient power infrastructure. The contribution of the power infrastructure segment is high because of the growth in the installation of 2N power infrastructure solutions among extensive facilities. The operators are also being prompted to support renewable energy sources to power their IT infrastructure.
Several APAC countries do not support the use of free cooling systems. The operators in this region are still highly dependent on traditional air-based cooling techniques in small facilities that are built as part of commercial complexes. The use of dual water feeds in data centers with on-site water treatment plants is fast gaining popularity in the region as a few countries such as India suffer from acute water shortage for cooling purposes. The increasing demand for ASHRAE and Uptime Institute certified infrastructure is likely to increase the importance of metrics such as power usage effectiveness, water-usage effectiveness, and carbon usage effectiveness during the forecast period. The use of air-based cooling will continue to co-exist in the APAC region because of the growth of small facilities.
China is leading in greenfield construction. There will be more likely to have brownfield developments in Hong Kong due to the space shortage during the forecast period. In terms of physical security, most service providers prefer four layers of safety, with a few engaging in the implementation of five-layer ones due to the increasing demand for colocation services. Australia is witnessing an increase in the construction of greenfield data center projects. Perth, Canberra, Brisbane, and Sydney are some of the major cities in Australia, where greenfield development is likely to increase.
The need for DCIM software to monitor facilities will continue to grow as the need to improve operational efficiency is growing. The general construction market will witness an increased construction of data centers in Japan. However, the cost of developing new facilities in the country is high. The rest of the APAC market will witness the entry of new construction services providers with greenfield construction growing. Telecommunication service providers and government agencies are the major investors in Southeast countries.
Multiple facilities are being developed in this region as part of commercial buildings in major cities. This scenario will change in the future years as more standalone data center developments will be witnessed in regions such as Southeast Asia, India, and Rest of APAC during the forecast period. However, with the increase in greenfield development, the need for skilled labor will also grow. The labor shortage is not higher in APAC countries than in European and American regions. Mega data center development will provide a major boost to the revenue growth for local construction contractors and suppliers.
In the APAC region, several under-developed projects fall under the Tier III category. This trend is likely to continue during the forecast period, with many operators expected to move to the Tier IV category based on the growth in rack power density and critical applications. Data centers in Japan are likely to adopt the Uptime Institute's Tier III or Tier IV design with a minimum of N+N redundancy across infrastructures. Most facilities developed were Tier III and Tier IV standards in 2019.
Insights by Geography
The deployment of data centers in China & Hong Kong is likely to exceed supply due to the increasing demand for cloud-based services, big data analytics, and IoT. China is the world's largest IoT market, with 64% of the 1.5 billion global cellular connections. The market in Hong Kong is witnessing investments YOY, which is aiding the country to emerge as one of the major data center hubs in the world. The submarine cable deployment in Australia will boost facility growth. In 2019, submarine fiber cable projects were INDIGO-Central and INDIGO-West, which connect Australia, Indonesia, and Singapore will contribute to the increase in network traffic.
The data center market in India is one of the fastest-growing in the APAC region. India witnessed continuous investment in cloud adoption and big data analytics from small and medium-sized industries in 2019. Government initiatives such as Digital India are the major contributor to the data center investment growth in the market. The market has also witnessed an increase in the number of new service providers offering hosting, storage, colocation services, and disaster recovery services.
Key Vendor Analysis
The APAC data center market is witnessing a steady growth in terms of IT infrastructure procurement, greenfield, brownfield, and modular data center development as well as the high adoption of efficient, scalable, flexible, and reliable infrastructure solutions.
Moreover, the market has a strong presence of vendors in the three categories: IT infrastructure, support infrastructure, and data center investors. From the IT infrastructure perspective, the contribution from APAC based infrastructure providers as well as global providers is almost equal. The increasing competition will prompt vendors to reduce the price of solutions, namely, SSD's and Ethernet Switches to gain major shares.
The market is witnessing the growth of data centers that are keen to reduce power and water consumption and decrease carbon dioxide emissions. This will increase the demand for energy-efficient and innovation power and cooling infrastructure solutions. Partnership with facility operators will play a vital role in gaining market share. It is because the majority of the providers in the regions have planned to invest millions of dollars in new facility development.
Key Topics Covered
1 Research Methodology
2 Research Objectives
3 Research Process
4 Scope & Coverage
4.1 Market Definition
4.2 Base Year
4.3 Scope of the Study
4.4 Market Segments
4.4.1 Market Segmentation by Facility Type
4.4.2 Market Segmentation by Infrastructure
4.4.3 Market Segmentation by IT Infrastructure
4.4.4 Market Segmentation by Electrical Infrastructure
4.4.5 Market Segmentation by Mechanical Infrastructure
4.4.6 Market Segmentation by Cooling Systems
4.4.7 Market Segmentation by Cooling Technique
4.4.8 Market Segmentation by General Construction
4.4.9 Market Segmentation by Tier Standards
4.4.10 Market Segmentation by Geography
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 & Data Growth In APAC
7.2 Data Center Site Selection Criteria
7.3 Electricity Pricing Across Major Data Center Locations
8 Market Enablers
8.1 Increased Cloud Adoption Propelling Data Center Market
8.2 Increase in Colocation Investment
8.3 Rising Construction of Hyperscale Data Centers
8.4 Tax Incentives & Area Allocation to Enhance Data Center Deployment
8.5 M&A, Joint Ventures Fuel Data Center Growth
8.6 Rise in AI & Machine Learning Workloads in APAC Data Centers
8.7 Increase in Submarine Fibre Cable Deployment
9 Market Restraints
9.1 Security Challenges in Data Centers
9.2 Data Center Development Constraints
9.3 Increase in Power Outages Due To Equipment Failure
9.4 Budget Constraints to Build/Procure Data Centers
10 Market Opportunities & Trends
10.1 5G Deployment to Increase Edge Data Center Investments
10.2 Increasing Procurement of Renewable Energy
10.3 Rising Awareness to Improve Data Center Efficiency
10.4 Lithium-Ion to Replace VRLA Batteries in Data Centers
10.5 Growth in Data Traffic to Aid Adoption of 200GBE & 400GBE Ports
10.6 NVME to Dominate in Flash Deployment
11 Market Landscape
11.1 Market Overview
11.2 Market Size & Forecast
11.3 Five Forces Analysis
11.3.1 Threat of New Entrants
11.3.2 Bargaining Power of Suppliers
11.3.3 Bargaining Power of Buyers
11.3.4 Threat of Substitutes
11.3.5 Competitive Rivalry
12 Facility Type
12.1 Facility: Snapshot & Growth Engine
12.2 Area: Snapshot & Growth Engine
12.3 Power Capacity: Snapshot & Growth Engine
12.4 Small Data Centers
12.5 Medium Data Center
12.6 Hyperscale Data Center
13 Infrastructure
13.1 Market Snapshot & Growth Engine
13.2 Market Overview
13.3 IT Infrastructure
13.4 Electrical Infrastructure
13.5 Mechanical Infrastructure
13.6 General Construction
14 IT Infrastructure
14.1 Market Snapshot & Growth Engine
14.2 Server Infrastructure
14.3 Storage Infrastructure
14.4 Network Infrastructure
15 Electrical Infrastructure
15.1 Market Snapshot & Growth Engine
15.2 UPS Systems
15.3 Generators
15.4 Transfer Switches & Switchgear
15.5 Power Distribution Units
15.6 Other Electrical Infrastructure
16 Mechanical Infrastructure
16.1 Market Snapshot & Growth Engine
16.2 Cooling Systems
16.3 Racks
16.4 Other Mechanical Infrastructure
17 Cooling Systems
17.1 Market Snapshot & Growth Engine
17.2 CRAC & CRAH Units
17.3 Chiller Units
17.4 Cooling Towers, Dry Coolers, & Condensers
17.5 Economizers & Evaporative Coolers
17.6 Other Cooling Units
18 Cooling Technique
18.1 Market Snapshot & Growth Engine
18.2 Air-Based Cooling Techniques
18.3 Liquid-Based Cooling Techniques
19 General Construction
19.1 Market Snapshot & Growth Engine
19.2 Building Development
19.3 Installation & Commissioning Services
19.4 Building Design
19.5 Physical Security
19.6 DCIM/BMS
20 Tier Standards
20.1 Market Snapshot & Growth Engine
20.2 Overview Of Tier Standards
20.3 Tier I and II
20.4 Tier III
20.5 Tier IV
21 Geography
21.1 Investment: Snapshot & Growth Engine
21.2 Area: Snapshot & Growth Engine
21.3 Power Capacity: Snapshot & Growth Engine
22 China & Hong Kong
23 Australia & New Zealand
24 India
25 Japan
26 Rest Of APAC
27 Southeast Asia
28 Competitive Landscape
28.1 IT Infrastructure
28.2 Electrical & Mechanical Infrastructure
28.3 General Construction
29 Key Data Center Critical (IT) Infrastructure Providers
29.1 Hewlett Packard Enterprise (HPE)
29.1.1 Business Overview
29.1.2 Product Offerings
29.1.3 Key News
29.2 Cisco
29.3 Dell Technologies
29.4 Huawei
29.5 IBM
29.6 Inspur
30 Key Data Center Support Infrastructure Providers
30.1 ABB
30.1.1 Business Overview
30.1.2 Product Offerings
30.1.3 Key News
30.2 Eaton
30.3 Rittal
30.4 Schneider Electric
30.5 Stulz
30.6 Vertiv
30.7 Caterpillar
30.8 Cummins
31 Key Data Center Contractors
31.1 AECOM
31.1.1 Business Overview
31.1.2 Service Offerings
31.2 Arup
31.3 Aurecon
31.4 CSF Group
31.5 DSCO Group
31.6 M+W Group
31.7 NIKOM Infrasolutions
31.8 NTT Facilities Group
32 Key Data Center Investors
32.1 Apple
32.1.1 Business Overview
32.1.2 Service Offerings
32.1.3 Key News
32.2 AWS (Amazon Web Services)
32.3 GDS Holdings
32.4 Google
32.5 Digital Realty
32.6 Equinix
32.7 NEXTDC
32.8 NTT Communications
32.9 ST Telemedia Global Data Centers (STT GDC)
33 Other Prominent Critical (IT) Infrastructure Providers
33.1 Arista
33.1.1 Business Overview
33.1.2 Product Offerings
33.2 ATOS
33.3 Broadcom
33.4 Extreme Networks
33.5 Hitachi Vantara
33.6 Inventec
33.7 Juniper
33.8 Lenovo
33.9 NEC
33.10 Netapp
33.11 Oracle
33.12 Pure Storage
33.13 Quanta Cloud Technology (Quanta Computer)
33.14 Super Micro Computer
33.15 Wistron (WIWYNN)
34 Other Prominent Support Infrastructure Providers
34.1 Airedale Air Conditioning
34.1.1 Business Overview
34.1.2 Product Offerings
34.1.3 Key News
34.2 ALFA Laval
34.3 Asetek
34.4 Bosch Security Systems (Robert Bosch)
34.5 Cyber Power Systems
34.6 Delta Group
34.7 Euro-Diesel (KNOLT)
34.8 Green Revolution Cooling
34.9 Hitech Power Protection
34.10 Kohler (SDMO)
34.11 Legrand
34.12 NLYTE Software
34.13 Mitsubishi
34.14 MTU On Site Energy (Rolls-Royce Power Systems AG)
34.15 SOCOMEC
34.16 TRANE (Ingersoll Rand)
35 Other Prominent Construction Contractors
35.1 DPR Construction
35.1.1 Business Overview
35.1.2 Service offerings
35.2 CORGAN
35.3 CSF Group
35.4 CUNDALL
35.5 Faithful+Gould
35.6 Flexenclosure
35.7 Fortis Construction
35.8 Hutchinson Builders
35.9 ISG
35.10 L&T (Larsen & Toubro)
35.11 Linesight
35.12 LSK Engineering
35.13 NAKANO Corporation
35.14 Obayashi Corporation
35.15 Red-Engineering
36 Other Prominent Data Center Investors
36.1 Bridge Data Centers
36.1.1 Business Overview
36.1.2 Service Offerings
36.1.3 Key News
36.2 Canberra Data Centers
36.3 CHAYORA
36.4 China Unicom
36.5 CTRLS
36.6 FPT (Frasers Property Thailand)
36.7 Global Switch
36.8 Internet Initiative Japan Inc. (IIJ)
36.9 Keppel Data Centres
36.10 NEO Telemedia
36.11 PI Datacenters
36.12 Reliance Communications (Global Cloud Xchange)
36.13 Sify Technologies
36.14 Space DC
36.15 Tenglong Holdings Group (Tamron)
36.16 Yotta Infrastructure
For more information about this report visit https://www.researchandmarkets.com/r/yyc0zq
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