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Asia-Pacific Data Center Market Outlook and Forecast 2020-2025DUBLIN, Feb. 18, 2020 /PRNewswire/ -- 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.
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. 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 Data Center Critical (IT) Infrastructure Providers
Key Data Center Support Infrastructure Providers
Key Data Center Contractors
Key Data Center Investors
Other Prominent Critical (IT) Infrastructure Providers - Arista, Atos, Broadcom, Extreme Network, Hitachi Vantara, Inventec, Juniper, Lenovo, NEC, NetApp, Oracle, Pure Storage, Quanta Cloud Technology (Quanta Computer), Super Micro Computer, and Wistron (Wiwynn). Research and Markets also offers Custom Research services providing focused, comprehensive and tailored research.
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