Data centre construction to top $74bn in market value
Security concerns, new technology, green data centres and booming cloud adoption main growth drivers for the industry worldwide.
The global data centre construction market is predicted to be on its way towards a market value of $73.87bn by 2021 with a CAGR of 8.61%, according to analysts.
The construction of a data centre includes design, architecture, installation of electrical and mechanical systems, as well as general construction services, says Technavio in its latest research ‘Global Data Center Construction Market 2017-2021’.
In the report, researchers explained that the growing adoption of cloud based services in the enterprise layer is a key factor positively impacting the growth of the global data centre construction market.
Looking at the construction sector, Technavio researchers divided the market into three categories: general construction, electrical construction and mechanical construction.
The general construction vertical represents 43% of the global construction picture, encompassing the design and construction of a well-secured facility, in addition to installing the setup, flooring, internal frames, external walls, windows, doors, installation of infrastructure, and disposal fittings.
Growth in the segment is being driven by multiple security concerns among end-users, leading to an increase in the investments made by data centre owners in the installation of high-tech security infrastructures.
The rise in modular data centres is another key driver of the market segment.
In the electrical construction segment, analysts expect the market to $20.9bn by 2021, driven by several innovations and continual change in the design requirements for the development of green data centres.
In the report it reads: “The effective planning and procurement of the proper electrical infrastructure streamlines the entire data centre operation by achieving better uptime and reliability in operations.”
Technavio highlights that the most popularly used electrical data centre infrastructure includes the UPS, rack PDUs, generators, transfer switches, and switchgear.
Lastly, in mechanical construction, Abhishek Sharma, a lead analyst at Technavio for data centre research, explained: “Data centre designs include mechanical components such as cooling solutions and racks. It also includes sprinklers, piping, belts, filters, water pipework installations, and lifts.
“This segment is expected to grow swiftly at a CAGR of over 9% over the forecast period, driven by the installation of innovative products to improve the power usage effectiveness,” says Abhishek.
The top vendors highlighted by Technavio’s research analysts in the report include AECOM, Arup Group, Corgan, DPR Construction, Gensler, HDR, Page Southerland Page, Holder Construction Group, Jones Engineering Group, Structure Tone, Syska Hennessy, Turner Construction.