Asia-Pacific (APAC) Hyperscale Data Center - Industry Outlook & Forecast 2021-2026

In-depth Analysis and Data-driven Insights on the Impact of COVID-19 Included in this APAC Hyperscale Data Center Market Report



The APAC hyperscale data center market by investment is expected to grow at a CAGR of 4.65% during 2021-2026.

The following factors are likely to contribute to the growth of the APAC hyperscale data center market during the forecast period:

• Growing 5G Deployments Across Data Centers
• Increasing M&As & Joint Ventures
• Rising Adoption of Hyperscale Data Center Developments
• Growing Cloud Services Adoption

APAC HYPERSCALE DATA CENTER INDUSTRY INSIGHTS

The growing internet usage is increasing data generation, fueling increased data processing and storage facilities such as data centers. The growth in data generation in the region is also fueled by technology penetration such as cloud, big data, and IoT. Organizations are adopting these technologies in considerable numbers to gain an edge in market competitiveness. The APAC hyperscale data center market is fueled by construction from enterprise and colocation data center operators. Data center operators are investing in expanding existing facilities and constructing new facilities across the region. In 2020, the APAC market witnessed investments in around 45 hyperscale data center facilities. China & Hong Kong witnessed around 21 hyperscale investments, followed by India, Japan, and Australia.

SNIPPETS

• In APAC, China & Hong Kong dominated the hyperscale data center market.
• Greenfield development, especially for facilities with a data center space of over 50,000 square feet, will be very high among colocation providers.
• The ODM market will continue to grow as hyperscale providers are currently expanding data center infrastructure by investing billions of dollars.
• Australia & New Zealand hyperscale data center market by investment is expected to reach USD 3.65 billion by 2026.
• Most hyperscale data centers will be equipped with N+N redundancy for cooling systems with a minimum of N+1 redundancy in other infrastructure for smooth functioning of the facilities.
• In India, the data center market is witnessing strong growth supported by hyperscale investments from operators such as Colt Data Centre Services, Bridge Data Centres, Yotta Infrastructure Solutions (Hiranandani Group), NTT Global Data Centers, and ST Telemedia Global Data Centres.

MARKET SHARE AND SEGMENTATION

• The demand for servers suitable for cloud environments will continue to grow throughout the forecast period as service providers expand their presence in the region.
• In 2020, the storage systems market was driven by the increased adoption of all-flash storage arrays with a sizable contribution from hybrid storage arrays.
• The APAC hyperscale data center market by storage infrastructure is expected to reach USD 9.59 billion by 2026.
• Innovations and advancements in UPS batteries are assisting in the growth of the APAC data center market.
• The higher investment in hyperscale data centers for greater power capacity needs is expected to generate more revenue for the vendors during the forecast period.
• The adoption of racks largely depends on the raised floor space of data centers. The APAC Hyperscale data center market by racks is expected to reach USD 0.41 billion by 2026.
• Pump systems, ductworks, piping units, and valves are the major contributors to investment in the other infrastructure segment across the APAC data center industry.
• The APAC Hyperscale data center market by cooling towers, condensers & dry coolers will grow at a CAGR of 3.88% in the upcoming years.
• The air-cooling technique includes traditional CRACs and free cooling solutions. Free cooling solutions are gaining momentum over liquid-based cooling solutions.
• The data center market in APAC is currently witnessing an increase in the construction of greenfield data center projects. The APAC hyperscale data center market by core & shell development is expected to reach USD 1.28billion by 2026.

Market Segmentation by Infrastructure

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

Market Segmentation by IT Infrastructure

• Server Infrastructure
• Storage Infrastructure
• Network Infrastructure

Market Segmentation by Electrical Infrastructure

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

Market Segmentation by Mechanical Infrastructure

• Cooling Systems
• Racks
• Other Mechanical Infrastructure

Market Segmentation by Cooling System

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

Market Segmentation by Cooling Techniques

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

Market Segmentation by General Construction

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

GEOGRAPHIC LANDSCAPE

The data center industry in APAC is growing YoY aided by strong growth in internet connectivity across the region. Hyperscale data center demand in China & Hong Kong will exceed supply due to the rising demand for cloud-based services, big data analytics, and IoT. China is a prominent market for data center operations in the APAC region. The continuous boom in technology innovation is driving the growth of the hyperscale data center market in APAC. The data center industry is witnessing a higher deployment of interconnection and cloud connectivity services. In 2020, the major hyperscale investors in Shanghai were GDS Services and OneAsia Network. The China & Hong Kong hyperscale data center market by investment will grow at a CAGR of 2.21% during the forecast period.

Market Segmentation by Geography

• APAC
• China & Hong Kong
• Australia & New Zealand
• India
• Japan
• Rest Of APAC
• Southeast Asia

VENDOR LANDSCAPE

The demand for converged and hyper-converged solutions experienced substantial growth in the industry. Hewlett Packard Enterprise witnessed a strong demand for its mission-critical server product portfolio. The average selling price of Hewlett Packard Enterprise servers increased due to the rising cost of components. Hewlett Packard Enterprise is the leading vendor in the server market. The APAC hyperscale market is witnessing significant revenue contributions from ODM server manufacturers such as Quanta Systems (QCT), Wistron (Wiwynn), and Inventec. The storage market is migrating towards all-flash storage solutions. The industry is expected to become more competitive, owing to the decline in the prices of SSDs. Vendor offerings are concentrated on the cloud, big data, artificial intelligence, and IoT-based application workloads in the APAC hyperscale data center market share to gain high in the region.

Prominent IT Infrastructure Vendors

• Arista Networks
• Atos
• Broadcom
• Cisco Systems
• Dell Technologies
• Extreme Networks
• Hewlett Packard Enterprise (HPE)
• Hitachi
• Huawei Technologies
• IBM
• Inspur Group
• Inventec
• Juniper Networks
• Lenovo
• NEC
• NetApp
• Oracle
• Pure Storage
• Quanta Cloud Technology
• Super Micro Computer
• Wistron (Wiwynn)

Prominent Support Infrastructure Vendors

• ABB
• Alfa Laval
• Airedale International Air Conditioning
• Asetek
• Bosch Security and Safety Systems
• Caterpillar
• Condair Group
• Cummins
• Delta Group
• Eaton
• Green Revolution Cooling (GRC)
• HITEC Power Protection
• KOHLER
• Legrand
• Nlyte Software
• Nortek Air Solutions
• Mitsubishi Electric
• Rolls-Royce Power Systems
• Piller Power Systems
• Rittal
• Schneider Electric
• STULZ
• Trane
• Vertiv Group

Prominent Construction Contractors

• AECOM
• Arup
• Aurecon Group
• AWP Architects
• BYME Engineering
• Chung Hing Engineers
• Corgan
• CSF Group
• Cundall
• DPR Construction
• DSCO Group
• Faithful+Gould
• Fortis Construction
• Gammon Construction
• Hutchinson Builders
• ISG
• Kienta Engineering Construction
• Larsen & Toubro Construction (L&T)
• Linesight
• Nakano Corporation
• NTT FACILITIES
• Obayashi
• PM Group
• RED
• Sterling & Wilson
• Studio One Design

Prominent Data Center Investors

• Airtel (Nxtra Data)
• AirTrunk Operating
• Apple
• Amazon Web Services (AWS)
• BDx (Big Data Exchange)
• Bridge Data Centres
• Canberra Data Centres
• Chayora
• Chindata
• Colt Data Centre Services
• CtrlS Datacenters
• Digital Realty
• Equinix
• Facebook
• GDS Services
• Global Switch
• Keppel Data Centres
• NEC
• NTT Global Data Centers
• PCCW Global
• Regal Orion
• Shanghai Atrium (AtHub)
• SpaceDC
• ST Telemedia Global Data Centres (STT GDC)
• Tenglong Holdings Group (Tamron)
• Yotta Infrastructure Solutions (Hiranandani Group)

New Entrants in APAC Hyperscale Market

• AdaniConneX
• Digital Edge DC
• Hickory Group
• Mantra Data Centers
• Pure Data Centres
• Stratus DC Management

KEY QUESTIONS ANSWERED:

1. How big is the APAC Hyperscale Data Center Market?
2. What are the latest opportunities in Hyperscale Data Center Market in APAC?
3. What is the impact of COVID-19 on Hyperscale Data Centers?
4. Which region will have the highest market share in APAC Hyperscale Data Center?
5. Who are the Key Vendors in APAC Hyperscale Data Center?