Data Center Construction Market Global Analysis & 2025 Forecast Report |The Insight Partners

Datacenter construction market is expected to reach US$ 68,953.8 million by 2022 from US$ 33,871.5 million in 2015. Electrical design construction segment is expected to continue its dominance. Currently, almost 40% of the datacenter construction market share by revenue is captured by are electrical design. A data center comprises of a hierarchy of electrical devices, which helps in transmitting power from a utility feed to server racks. Some of the important devices include utility feeds, switchgear, generators, UPS, PDUs etc. Electrical supplies arriving at the data center infrastructure need to be transformed to a usable voltage level, which is performed by using transformer. Utility grids are the major source of power supply to the data centers. Whereas, switchgear helps in safely distributing power from the transformer or utility to the datacenter floor. Furthermore, generators and Uninterruptible Power Supply (UPS) deliver temporary and longer-term backup power. Power Distribution Units (PDU) helps in transmitting electricity or power to racks as well as standalone systems.

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Key trend which will predominantly effect the market in coming year in datacenter construction market is colocation and cloud services are expected to gain the larger pie of the market. For small enterprises, constructing their own data center involves huge capital. Since, these enterprises don’t have enough budget or capital expenditure to construct a data center also, the ROI is comparatively low. Therefore, most of these enterprises are choosing colocation or cloud services. These companies don’t require much storage space and constructing their own data center is not feasible for them. Thereby, they depend on colocation or CSPs for storing their data. Also, apart from capital required to build a data center, other expenses and efforts such as maintenance and service becomes a burden for these companies. Moreover, the demand for colocation services is giving a rise to construction of mega data centers as it offers economies of scale. Thus, it is anticipated that the colocation and cloud software as service products will increase in the coming years

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Datacenter construction market by industry vertical is segmented into BFSI, Government, Technology, Telecom Media & Entertainment, Retail, Healthcare and Others. Technology segment by industry use vertical is accounted to hold the lions share in the global data center construction market. Data generated by large social media platforms such as Facebook & twitter, increasing utilization of smartphone applications, and adoption of smart devices are primarily driving the growth of this segment. Speed, size, and efficiency are the essential elements which nowadays rule the IT industry. Increased adoption of smart phones, laptops, tablets, gaming consoles and other gadgets for transferring data has created a need for additional data storage capacity. Data centers offer various benefits to IT industry such as speed of deployment, waste and energy efficiency and most important is scalability. Thus, IT industry is adopting the data centers for keeping pace in the highly competitive market.

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The overall market size has been derived using both primary and secondary source. The research process begins with an exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the market. Also, primary interview were conducted with industry participants and commentators in order to validate data and analysis. The participants who typically take part in such a process include industry expert such as VPs, business development managers, market intelligence managers and national sales managers, and external consultant such as valuation experts, research analysts and key opinion leaders specializing in the datacenter construction industry.

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The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We are a specialist in Technology, Media, and Telecommunication industries.

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