Asia-Pacific Data Center Markets, 2022-2027 - M&A & Joint Ventures to Increase Growth, Innovative Technologies, COVID-19 Impact on Data Center Investments

Dublin, IRELAND


Dublin, Feb. 09, 2022 (GLOBE NEWSWIRE) -- The "APAC Data Center Market - Industry Outlook & Forecast 2022-2027" report has been added to ResearchAndMarkets.com's offering.

The Asia Pacific data center market witnessed investments of USD 63.15 billion in 2021 and will witness investments of USD 94 billion by 2027, growing at a CAGR of 6.30% during 2022-2027.

The data center market in APAC is mainly dominated by colocation providers, followed by internet and cloud service providers. Many cloud-based service providers are dependent on the construction of facilities by colocation providers to collocate space on a wholesale basis.

However, in the past years, hyperscale operators have also started to build their own capacity in the regions. The market in APAC is witnessing steady growth with continued investments from AWS, Microsoft, Alibaba, Tencent, and Facebook. Government agencies across several countries in APAC are also actively involved in facilitating data center growth to digitalize their nation.

SEGMENTATION ANALYSIS

IT Infrastructure: In the IT infrastructure segment, major revenue is generated by servers as the growth in data generation is fueling demand for faster processing and efficient servers. Server infrastructure spending in APAC will cross $37 billion by 2027. Due to high internet penetration, data is generated in exabytes and petabytes. The data center operators need efficient IT infrastructure aided by continuous innovations by vendors towards the performance of this infrastructure in the APAC region.

Electrical Infrastructure: Electrical infrastructure adoption will grow by around 7% year-over-year (YOY) in the APAC region. In terms of UPS adoption, the use of 750?1,500 kVA systems has increased along with a contribution from

General Construction: Over $40 billion will be spent on building data center core & shell in APAC that includes spending on physical security, fire protection and suppression systems, and infrastructure management software. The data center market in APAC is currently witnessing an increase in the greenfield hyperscale data center projects.

GEOGRAPHICAL ANALYSIS

China: Over 70 data center projects identified in the China market with significant investments from GDS Services, ChinData, Tenglong Holdings Group, Huawei, Keppel Data Centres Alpha Data Centre Ningsuan Technology Group Shanghai Atrium (AtHub). Arizton estimates a spending of USD35 billion on data centers and their related infrastructure during 2022-2027 in China market. In September 2021, Chindata announced its participation in a nationwide renewable power contract by purchasing 100,000 MWh of renewable energy.

Japan: Japan is among the major hyperscale data center market, with several announced and under development facilities support capacity over 15 MW on full-build. In 2021, Equinix, AirTrunk Operating, Digital Edge, and Digital Realty were the major investors investing in Japan. ESR Cayman, KYOCERA Communication Systems, Lendlease, Marunouchi Direct Access, Princeton Digital Group (PDG), SCSK Corporation (netXDC), and Vantage Data Centers are also investing in Japan data centers with operational dates before 2025.

VENDOR ANALYSIS

Hewlett Packard Enterprise is a leading vendor in the server market. The demand for converged and hyper converged solutions are experienced strong growth in the market. Hewlett Packard Enterprise witnessed a strong demand for its mission-critical server product portfolio. The average selling price of servers has increased due to the rising cost of components.

SMEs operating on-premises infrastructure solutions are adopting IT infrastructure that suits their operational business needs. APAC is witnessing a massive increase in data usage by consumers using services offered by companies in the e-commerce, social media, and entertainment industries. Digital services offered by the BFSI and government sectors are also key enablers for data growth in the market.

Vendors offering solutions to match every business network's operational needs, thereby implementation of 5G has taken off in many countries and is likely to increase the data traffic leading to the procurement of high-capacity networking solutions in the data center market.

KEY HIGHLIGHTS

  • Data Center Investments in the Asia Pacific region grew by around 35% in 2021, compared to 2020.
  • Over 250 data center projects are at various construction stages (open, under construction, announced, and planned) in APAC during 2021 with an expected operational date of up to 2024.
  • Entry of new operators through Mergers & Acquisition and Joint Venture (JV) will continue to grow the investments in APAC data centers.
  • The top five locations namely, Singapore, Tokyo, Osaka, Sydney, and Beijing accounted for over 60% of investments in 2021.

KEY GROWTH FACTORS

  • 5G Deployments Fueling Edge Data Center Investments
  • Innovative Data Center Technologies
  • Adoption of Lithium-Ion UPS Batteries
  • Adoption of Carbon-Free Energy Sources
  • Cloud Adoption Drives Data Center Investments
  • COVID-19 Impact on Data Center Investments
  • Tax Incentives, Area Allocation, & Data Localization to Increase Investments
  • M&A & Joint Ventures to Increase Data Center Growth in APAC
  • Increase in Inland & Submarine Connectivity
  • IT Infrastructure in Data Centers

ASIA PACIFIC DATA CENTER MARKET SEGMENTS

Market Segmentation by Infrastructure

  • IT Infrastructure
  • Electrical Infrastructure
  • Mechanical Infrastructure
  • General Construction

Market Segmentation by IT infrastructure

  • Server
  • Storage
  • Network

Market Segmentation by Electrical Infrastructure

  • UPS Systems
  • Generators
  • Transfer Switches & Switchgear
  • Power Distribution Units
  • Other Electrical Infrastructure

Market Segmentation by Mechanical Infrastructure

  • Cooling Systems
  • Racks
  • Other Mechanical Infrastructure

Market Segmentation by Cooling Systems

  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers and Dry Coolers
  • Economizers & Evaporative Coolers
  • Other Cooling Units

Market Segmentation by Cooling Technique

  • Air-Based Cooling Technique
  • Liquid-Based Cooling Technique

Market Segmentation by General Construction

  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Physical Security
  • Fire Detection & Suppression
  • DCIM/BMS

Market Segmentation by Facility Type

  • Hyperscale Data Centers
  • Colocation Data Centers
  • Enterprise Data Centers

Market Segmentation by Tier Standard

  • Tier I & II
  • Tier III
  • Tier IV

Key IT Infrastructure Providers

  • Cisco Systems
  • Dell Technologies
  • Hewlett Packard Enterprise
  • Huawei Technologies
  • IBM
  • Inspur

Key Support Infrastructure Providers

  • ABB
  • Caterpillar
  • Cummins
  • Eaton
  • Rittal
  • Schneider Electric
  • STULZ
  • Vertiv Group

Key Construction Contractors

  • AECOM
  • Arup
  • Aurecon Group
  • CSF Group
  • DSCO Group
  • Gammon Construction
  • Larsen & Toubro (L&T)
  • PM Group
  • Studio One Design
  • NTT Facilities Group

Key Data Center Investors

  • AirTrunk Operating
  • Digital Realty
  • Equinix
  • GDS Services
  • Keppel Data Centres
  • NTT Global Data Centers
  • NEXTDC
  • ST Telemedia Global Data Centres

Other Prominent IT Infrastructure Providers

  • Arista Networks
  • Atos
  • Broadcom
  • Extreme Networks
  • Hitachi Vantara
  • Inventec
  • Juniper Networks
  • Lenovo
  • NEC
  • NetApp
  • Oracle
  • Pure Storage
  • Quanta Cloud Technology (Quanta Computer)
  • Super Micro Computer (Supermicro)
  • Wistron Corporation (Wiwynn)

Other Prominent Support Infrastructure Providers

  • Airedale International Air Conditioning
  • Alfa Laval
  • Canovate
  • Delta Electronics
  • EAE
  • HITEC-Power Protection
  • Legrand
  • Rolls-Royce Power Systems
  • Shenzhen Envicool Technology
  • Siemens
  • Green Revolution Cooling (GRC)
  • KOHLER (SDMO)
  • Mitsubishi Electric Corporation
  • Socomec Group
  • Trane (Ingersoll Rand)

Other Prominent Construction Contractors

  • Chung Hing Engineers Group
  • AWP Architects
  • BYME Engineering Ltd
  • Corgan
  • DPR Construction
  • Faithful+Gould
  • Fortis Construction
  • Hutchinson Builders
  • ISG
  • Kienta Engineering Construction
  • Linesight
  • LSK Engineering
  • M+W Group
  • Nakano Corporation
  • Obayashi Corporation
  • Powerware Systems (PWS)
  • Sato Kogyo
  • Sterling and Wilson (Shapoorji Pallonji group)
  • Red-Engineering
  • Turner & Townsend

Other Prominent Investors

  • 21Vianet Group
  • AIMS Data Centre
  • Bharti Airtel (NXTRA Data)
  • Bridge Data Centres
  • Big Data Exchange
  • Canberra Data Centres
  • Chayora
  • Chindata
  • Colt Data Centre Services (Colt DCS)
  • CtrlS
  • Global Switch
  • Iron Mountain
  • Lotte Data Communication
  • LG Uplus
  • Pi Data Centers
  • Princeton Digital Group
  • Regal Orion
  • Space DC
  • SUNeVison Holdings (iAdvantage)
  • Sify Technologies
  • Tenglong Holdings Group
  • Vietnam Posts and Telecommunications Group (VNPT)
  • Yotta Infrastructure

New Entrants

  • ESR Cayman
  • AdaniConneX
  • Data Center First
  • Yondr
  • Pure Data Centres Group
  • Hickory Group
  • Vantage Data Centers

For more information about this report visit https://www.researchandmarkets.com/r/qm2bgk

 

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