Southeast Asia's Data Center Construction Market - Forecast to 2024: Projected to Exhibit a CAGR of Approx 7%

DUBLIN, March 22, 2019 /PRNewswire/ -- The "Data Center Construction Market in Southeast Asia - Industry Outlook and Forecast 2019-2024" report has been added to ResearchAndMarkets.com's offering.

The Southeast Asia data center construction market is expected to reach values of approximately $2 billion by 2024, growing at a CAGR of around 7% during 2018-2024. The research report also offers market size in square ft area and power capacity in megawatts (MW) across geographies.

The investment support from REITs will enable growth of infrastructure by local vendors and incentives from the government will be highly beneficial for continuous investment from both local and global data center developers in the Southeast Asian market. The Southeast Asia data center construction market is driven by increasing deployments across emerging regions such as the Philippines, Vietnam, Myanmar, Cambodia, and Laos.

The adoption of water-based cooling systems and rack size of over 45U will lead to innovations in the Southeast Asia data center construction market. The market research report provides in-depth market analysis and segmental analysis of the Southeast Asia data center construction market by product, distribution channel, material, and geography.

The report considers the present scenario of the Southeast Asia data center construction market and its market dynamics for the period 2019 2024. It covers a detailed overview of various Southeast Asia data center construction market growth enablers, restraints, and trends.

The study includes both the demand and supply sides of the Southeast Asia data center construction market. It also profiles and analyzes the leading infrastructure vendors, construction companies, and data center vendors along with other prominent Southeast Asia data center construction market participants.

Market Dynamics

Digitalization of business operation is driving the demand for cloud-based service adoption in the Southeast Asia. Governments in Southeast Asia is investment millions of dollars to improve their digital economy.

Among the countries, Singapore is the only mature cloud market in Southeast Asia. Most of the organizations in Southeast Asia and other APAC countries operates through the cloud platforms hosted in the Singapore data centers. This is because that market has physical presence of major cloud service providers such as AWS, Microsoft, Google, Alibaba, Tencent, and IBM.

With data center in Singapore, cloud providers can provide services to their customers across the APAC region. The majority of the investment in Southeast Asia is brought in by demand for technologies such as cloud-based computing and supported by government across various countries to grow their digital economy. The governments across all the Southeast Asian countries have created anentity to aid in the growth of digital economy that includes increasing network capacity, aiding business to adopt technology and encourage global data center investment into the country.

In Southeast Asia, Singapore is investing significantly in connected reality. In the Southeast Asia region, the construction of data centers is experiencing significant growth. However, these data centers are mostly confined to major metro cities. In the Southeast Asia region, most data centers operate in major metros cities such as Singapore, Bangkok, Jakarta, Manila, Hanoi.

There are also multiple facilities or disaster recovery space operated across the countries. Most of these facilities comprise of small area and low power capacity. These cities are also experiencing a high amount of investment in recent times, and more data centers are planned for 2019 and 2020.

Market Segmentation

This market research report includes a detailed segmentation of the market by electrical infrastructure, mechanical infrastructure, tier standards, general construction, and country. The Southeast Asia data center construction market by electrical infrastructure is classified into UPS systems, generators, transfer switches & switchgear, rack PDU, and other electrical infrastructure. Generators dominated the total market share in 2018, growing at a CAGR of more than 7% during the forecast period.

The increasing adoption of generators by facilities operators is primarily to make sure that they operate at 100% availability irrespective of the change in incoming power from utility grids in the market. Flywheel-based UPS systems and lithium-ion UPS systems are gaining immense traction across several countries in the Southeast market. Switchgearcomprises a combination of switches, fuses, and circuit breakers to protect and isolate electrical infrastructure in the facilities in the market.

The mechanical infrastructure in the Southeast Asia data center construction market is categorized into cooling systems, racks, and other infrastructure. Racks are the fastest growing segment in the market, at a CAGR of over 9% during the forecast period. The installation of racks as pre-assembled infrastructure along with rack PDUs, rack-level UPS, and IT infrastructure is fueling the growth of this segment in the global market.

Free-cooling is not facilitated in this region and operators are looking for efficient solutions to reduce their CAPEX and OPEX, conserve data center space, and reduce power supply to cooling units in the market. The use of liquid-based cooling technique installations will boost the demand for other mechanical infrastructure in the Southeast Asia data center construction market.

The Southeast Asia data center construction market by building development is segmented into building development, installations and commissioning services, building designs, physical security, and DCIM. Building development segment occupied the majority of the total market share in 2018, growing at a CAGR of more than 5% during the forecast period.

Building development primarily focuses on site selection, preparation, and area construction and concrete-based data center building with windows in the market. Physical security systems that comprise sensors integrated with the existing DCIM solutions for real-time remote monitoring benefits will revolutionize the market. DCIM solutions offer features to control power consumption, improve efficiency, and increase operational capabilities in the Southeast Asia data center construction market.

The standard tier segment in the Southeast Asia data center construction market is divided into Tier I &II, Tier III, and Tier IV. Tier IV facilities are the fastest growing segment in the Southeast market, at a CAGR of approximately 20% during the forecast period. The increasing number of hyperscale developers such as Facebook, Apple, Microsoft, and Google investing in Tier IV facilities is fueling the growth of this segment in the market.

In the SEA region, several under-developed projects fall under the Tier III category. Most of the new data centers are being designed as per Tier III standards with a minimum of N+1 redundancy, which can be reconfigured with up to 2N+1 redundancy as and when the demand arises. Such deployments will boost investments in the Southeast Asia data center construction market.

Country Analysis

The Southeast Asia data center construction market by country is segmented into Indonesia, Malaysia, Singapore, Thailand, and other countries. Singapore dominated the majority of market share in 2018, growing at a CAGR of over 4% during the forecast period.

The increasing investments by Equinix, Singtel, ST Telemedia, Global Switch, Digital Realty, Keppel Data Centres, NTT Communications, 1-Net, Kingsland Data Center, NTT Communications, and Starhub is augmenting the growth of Singapore in the Southeast market.

Malaysia has over 30 data center colocation facilities, and the count is growing with the addition of around five data center projects every year in the market. TCC Technology, NTT Communications, KIRZ, Servenet Solution, True IDC, and SUPERNAP (Switch) Thailand are investors across Thailand and fueling the growth of the Southeast Asia data center construction market.

Key Vendor Analysis

The Southeast Asia data center construction market is prompting providers to improve the efficiency of the solution to attract the maximum number of consumers. Partnerships with local providers and modular datacenter offerings will enhance revenues for the vendors operating in the market.

The need for local service providers in installation, commissioning, and maintenance services will create job opportunities in the market. The increasing focus on innovations and pricing will boost the intensity of the competition level in the Southeast Asia data center construction market.

The major vendors in the Southeast Asia market are:

Infrastructure Providers

• ABB
• Schneider Electric
• Vertiv
• Caterpillar
• Cummins
• Delta Group
• Eaton
• Euro-Diesel
• Fuji Electric
• HPE
• Hitachi Hi-Rel Power Electronics
• Hitec Power Protection
• Huawei
• KOHLER Group
• Legrand Group
• Mitsubishi Electric
• MTU ONSITE ENERGY (Rolls-Royce Power Systems AG)
• Piller Systems
• Rittal

Construction Companies

• Arup
• AWP Architects
• CSF Group
• DSCo Group
• Fortis Construction
• Faithful+Gould
• Flex Enclosure
• Kienta Engineering Construction
• M+W Group (Excyte)
• NTTFACILITIES Group
• PM Group
• Powerware Systems (PWS)
• Sato Kogyo

Data Center Investors

• AIMS Data Centre
• Biznet Data Center
• CMC Telecom
• Colt DCS
• DCI Indonesia
• Digital Realty
• Equinix
• Global Switch
• GRAHA TEKNOLOGI NUSANTARA (GTN)
• Indosat Ooredoo (Lintasarta)
• Internet Thailand Public Company Limited (INET)
• Keppel DC
• Kepstar Data Center Management
• NTT Communications
• Philippine Long-Distance Telephone ALPHA (PLDT ALPHA)
• PT Telekomunikasi Indonesia
• Singtel
• ST Telemedia Global Data Centres (STT GDC)
• TCC Technology
• True Internet Data Center (True IDC)
• VADS Berhad
• VNTT
• XL Axiata

Key market insights include:

1. The analysis of Southeast Asia data center construction market provides market size and growth rate for the forecast period 2019-2024.
2. It offers comprehensive insights on current industry trends, trend forecast, and growth drivers about the Southeast Asia data center construction market.
3. The report provides the latest analysis of market share, growth drivers, challenges, and investment opportunities.
4. It offers a complete overview of market segments and the regional outlook of Southeast Asia data center construction market.
5. The report offers a detailed overview of the vendor landscape, competitive analysis, and critical market strategies to gain competitive advantage.

Topics Covered

1 Research Methodology

2 Research Objectives

3 Research Process

4 Report Coverage
4.1 Market Definition
4.2 Base Year
4.3 Scope of Study
4.3.1 Market Segmentation by Infrastructure
4.3.2 Market Segmentation by Electrical Infrastructure
4.3.3 Market Segmentation by Mechanical Infrastructure
4.3.4 Market Segmentation by Cooling Systems
4.3.5 Market Segmentation by Cooling Technique
4.3.6 Market Segmentation by General Construction
4.3.7 Market Segmentation by Tier Standards
4.3.8 Market Segmentation by Geography

5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation

6 Market at a Glance

7 Introduction
7.1 Impact of Internet Penetration in Southeast Asia
7.2 Data Center Site Selection Criteria

8 Market Dynamics
8.1 Market Growth Enablers
8.1.1 Increased adoption of cloud-based services
8.1.2 Migration from in-house infrastructure to colocation & managed services
8.1.3 Growing awareness among government bodies to improve digital economy
8.1.4 Increase in rack power density and adoption of efficient infrastructure
8.1.5 YOY Impact of Market Growth Enablers
8.1.6 YOY Impact of Market Growth Enablers on Countries
8.2 Market Growth Restraints
8.2.1 Location constraints for data center construction
8.2.2 Budget constraints limiting operations of efficient data centers
8.2.3 Operational constraints due to power outages and fluctuations
8.2.4 Data center design constraints
8.2.5 YOY Impact of Market Growth Restraints
8.2.6 YOY Impact of Market Growth Restraints on Regions
8.3 Market Opportunities & Trends
8.3.1 Increased adoption of prefabricated data center solutions
8.3.2 Increasing investment in fiber connectivity
8.3.3 Hyperscale data centers promote renewable energy adoption
8.3.4 Big data and IoT demand to increase edge data center development
8.3.5 Emergence of lithium-ion batteries and fuel cells
8.3.6 YOY Impact of Market Opportunities & Trends
8.3.7 YOY Impact of Market Opportunities & Trends on Regions

9 Data Center Construction Market in SEA
9.1 Market Overview
9.2 Market Size & Forecast
9.3 Porter's Five Forces Analysis

10 Market by Infrastructure Type
10.1 Market Overview
10.2 Electrical Infrastructure
10.3 General Construction
10.4 Mechanical Infrastructure

11 Electrical Infrastructure
11.1 Generators
11.2 UPS SYSTEMS
11.3 Transfer Switches & Switchgears
11.4 Rack Power Distribution Units
11.5 Other Electrical Infrastructure

12 Mechanical Infrastructure
12.1 Cooling Systems
12.2 Racks
12.3 Other mechanical Infrastructure

13 Cooling Systems
13.1 CRAC and CRAH Units
13.2 Chiller Units
13.3 Cooling Towers & Dry Coolers
13.4 Other Cooling Units

14 Cooling Technique
14.1 Liquid-Based Cooling Techniques
14.2 Air-Based Cooling Techniques

15 General Construction
15.1 Building Development
15.2 Installation & commissioning Services
15.3 Building Design
15.4 Physical Security
15.5 DCIM

16 Tier Standards
16.1 Overview of Tier Standards
16.2 Tier I & II
16.3 Tier III
16.4 Tier IV

17 By Geography

18 Singapore

19 Malaysia

20 Thailand

21 Indonesia

22 Other Countries

23 Competitive Scenario
23.1 Electrical Infrastructure
23.2 Mechanical Infrastructure
23.3 General Construction

24 Prominent Infrastructure Providers
24.1 ABB
24.1.1 Overview
24.1.2 Product offerings
24.2 Schneider Electric
24.3 Vertiv
24.4 Caterpillar
24.5 Cummins
24.6 Delta Group
24.7 Eaton
24.8 Euro-Diesel
24.9 Fuji Electric
24.10 Hewlett Packard Enterprise (HPE)
24.11 Hitachi Hi-Rel Power Electronics
24.12 Hitec Power Protection
24.13 Huawei
24.14 KOHLER Group
24.15 Legrand Group
24.16 Mitsubishi Electric
24.17 MTU ONSITE ENERGY (Rolls-Royce Power Systems AG)
24.18 Pillar Systems
24.19 Rittal

25 Prominent Construction Companies
25.1 Arup
25.1.1 Overview
25.1.2 Service offerings
25.2 AWP Architects
25.3 CSF Group
25.4 DSCO Group
25.5 Fortis Construction
25.6 Faithful+Gould
25.7 Flex Enclosure
25.8 Kienta Engineering Construction
25.9 M+W Group (Excyte)
25.10 NTT Facilities Group
25.11 PM Group
25.12 Powerware Systems (PWS)
25.13 Sato Kogyo

26 Data Center Investors
26.1 AIMS Data Centre
26.1.1 Overview
26.1.2 Service Offerings
26.2 Biznet Data Center
26.3 CMC Telecom
26.4 Colt Data Centre Services (Colt DCS)
26.5 DCI Indonesia
26.6 Digital Realty
26.7 Equinix
26.8 Global Switch
26.9 Graha Teknologi Nusantara (GTN)
26.10 Indosat Ooredoo (Lintasarta)
26.11 Internet Thailand Public Company Limited (INET)
26.12 Kepple DC
26.13 Kepstar Data Centre Management
26.14 NTT Communications
26.15 Philippine Long Distance Telephone ALPHA (PLDT ALPHA)
26.16 PT Telekomunikasi Indonesia
26.17 Singtel
26.18 ST Telemedia Global Data Centres (STT GDC)
26.19 TCC Technology
26.20 True Internet Data Center (True IDC)
26.21 VADS BERHAD
26.22 VNTT
26.23 XL Axiata

For more information about this report visit https://www.researchandmarkets.com/research/mnts44/southeast_asias?w=5

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