Data Center Construction Market Size, Share, Trends, Growth, Production, Consumption, Revenue, Company Analysis and Forecast 2021-2028

Published Date : Dec 2020 | No. of Pages : 250 Pages | Category : ICT

The global Data Center Construction market size is expected to be worth around US$ 308.6 billion by 2028, according to a new report by Vision Research Reports.

The global Data Center Construction market size was valued at US$ 207.3 billion in 2020 and is anticipated to grow at a CAGR of 6.5% during forecast period 2021 to 2028.

Growth Factors

The growth is attributed to the growing need for data storage processing capacity as digital transformation continues to gain pace across small as well as large enterprises. The demand for cloud computing and virtualization along with rise in digital transformation has increased data consumption and volume of information processed. The growing preference for contactless payments and remote working amid the COVID-19 outbreak is driving the need for high-speed information processing and storage capacity across various industries and industry verticals. All these factors bode well for the growth of the market.

The continued rollout of 4G and 5G high-speed networks and the gradual emergence of quantum computing are expected to encourage the adoption of connected vehicles and smart appliances among individual consumers as well as enterprises. Subsequently, the demand for adequate storage capacity and high-speed information processing capability is also expected to increase. The growing demand for storage and high-speed information processing capacity is prompting IT infrastructure companies to opt for the latest, advanced storage solutions, including flash memory and Solid-State Drives (SSD).

While the use of social media shows no signs of abating, the preference for online shopping and OTT platforms is also growing as the emergence of 5G technology is ensuring high-speed internet access in both urban and rural areas and is subsequently driving data volumes. The growing preference for using social media platforms and online shopping portals among individuals is particularly expected to drive the market.

Report Highlights

The server segment dominated the market for data center construction and accounted for the largest revenue share of 52.3% in 2019. The segment is expected to register a healthy growth rate of 6.6% over the forecast period. The growing preference for adopting emerging technologies, such as AI and edge computing, which is driving the demand for high-computing servers, is expected to pave the way for the growth of the segment. Besides, the hyperscale data center providers look to leverage government initiatives worldwide, such as AI for Earth campaign, which is expected to favor servers’ market growth over the forecast period.

The miscellaneous expenses segment is expected to witness a CAGR of 2.4% over the forecast period. Miscellaneous expenses account for the security infrastructure costs, property costs, and building and shell construction costs, among other costs. The security costs include physical security and digital security of the data center. The growing instances of cybercrime and data breaches are prompting service providers to invest aggressively in highly sophisticated security solutions.

The cooling segment dominated the market for data center construction and accounted for the largest revenue share of 57.4% in 2019. The high market share can be attributed to the need for efficient cooling equipment to maintain optimum temperature and humidity levels across the data centers. IT infrastructure in data centers generates enormous amounts of heat as data centers are operational 24 hours a day and 365 days a year.

The IT and telecom segment dominated the market for data center construction and accounted for the highest share of 38.7% in 2019 as a result of the proliferation of smartphones and the rise in the number of active internet users globally. The continued rollout of 5G networks also allowed the segment to dominate the market in 2019 and the trend is expected to continue over the forecast period. The continued adoption of Network Function Virtualization (NFV) and Software-Defined Networks (SDN) as applications to support OTT Platforms, M2M communication, and online gaming is also expected to fuel the growth of the segment and subsequently drive the investments in this space over the forecast period.

The tier 3 segment dominated the market for data center construction and accounted for the largest revenue share of 50.3% in 2019. The high market share can be attributed to the increased redundancy across data centers. The rising need for high-performance computing and increased storage capacity is another factor why the tier 3 segment has dominated the market for data center construction. Tier 3 standard is popular among media providers, such as Netflix and Facebook, as well as for the incumbents of the financial and service industries.

North America dominated the market for data center construction and accounted for the largest revenue share of over 40.01% in 2019, followed by Asia Pacific. The high revenue share of North America can be attributed to the aggressive investments in hyperscale projects. The U.S. happens to be a developed economy and already boasts an established, sophisticated network infrastructure. It is also home to major cloud service providers, such as, Google, Inc., and Facebook. These companies are investing in the construction of mega facilities for additional data storage and processing capabilities, thereby opening opportunities for market growth.

Key Players

  • IBM

  • Hewlett Packard Enterprise

  • Dell EMC

  • Lenovo

  • Oracle

  • Fujitsu

  • Cisco

  • Equinix, Inc.

Market Segmentation

  • IT Infrastructure Outlook 

    • Networking Equipment

    • Server

    • Storage

  • Power Distribution & Cooling Infrastructure Outlook

    • Power Distribution

    • Cooling

  • Miscellaneous Expenses Outlook 

    • Miscellaneous Expenses

  • Tier Type Outlook 

    • Tier 1

    • Tier 2

    • Tier 3

  • End-use Outlook 

    • IT & Telecom

    • BFSI

    • Government & Defense

    • Healthcare

    • Energy

    • Others

  • Regional Outlook

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

The Data Center Construction market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.

The report provides size (in terms of volume and value) of Data Center Construction market for the base year 2020 and the forecast between 2021 and 2028. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.

This report focuses on the global Data Center Construction market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Data Center Construction market development in United States, Europe and China.

It is pertinent to consider that in a volatile global economy, we haven’t just conducted Data Center Construction market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.

In terms of production side, this report researches the Data Center Construction capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.

In terms of consumption side, this report focuses on the consumption of Data Center Construction by regions (countries) and application.

Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Data Center Construction market. These figures have been provided in terms of both revenue and volume for the period 2017 to 2028. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.

With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Data Center Construction market companies.

Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Data Center Construction market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.

The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.

Overall, this is an in-depth research report specifically for the Data Center Construction industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.

The Data Center Construction market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Data Center Construction market.

Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Data Center Construction market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.

Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Data Center Construction market. These factors have benefited the growth of the global market for Data Center Construction. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.

New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Data Center Construction. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).

In this study, the years considered to estimate the market size of Data Center Construction are as follows:

  • Historic Year: 2017-2020
  • Base Year: 2020
  • Forecast Year 2021 to 2028

Reasons to Purchase this Report:

- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players

Research Methodology:

In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.

This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.

Market Size Estimation

Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).

The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.

Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.

All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.

Market Breakdown and Data Triangulation

After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.

Secondary Sources

Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.

Primary Sources

 In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.

The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.

The study objectives of this report are:

  • To analyze and study the global market capacity, production, value, consumption, status (2017-2020) and forecast (2021-2028);
  • Focuses on the key manufacturers, to study the capacity, production, value, market share and development plans in future.
  • Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
  • To define, describe and forecast the market by type, application and region.
  • To analyze the global and key regions market potential and advantage, opportunity and challenge, restraints and risks.
  • To identify significant trends and factors driving or inhibiting the market growth.
  • To analyze the opportunities in the market for stakeholders by identifying the high growth segments.
  • To strategically analyze each submarket with respect to individual growth trend and their contribution to the market
  • To analyze competitive developments such as expansions, agreements, new product launches, and acquisitions in the market
  • To strategically profile the key players and comprehensively analyze their growth strategies.

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