The SaaS market in the US is expected to grow at a CAGR of over 15% during the forecast period 2018?2024
NEW YORK, Sept. 19, 2019 /PRNewswire/ --
The US data center market is expected to reach revenues of over $69 billion by 2024.
The growing popularity of Internet of Things (IoT) is a major driver for the growth of the US data center market. The country is one of the leading markets for IoT technologies, including IoT endpoints, IoT communication, IoT security, IoT data and analytics, and IoT artificial intelligence.
Read the full report: https://www.reportlinker.com/p05373410/?utm_source=PRN
The increasing usage of cloud computing services and applications continues to grow rapidly in the US, thereby leading to the establishment of large hyperscale cloud-based data centers. The growing demand for cloud services in the US is likely to increase the construction of cloud-based data centers. Amazon Web Services (AWS), Google, and Microsoft are increasing their investments in data center construction. In 2019, Northern Virginia, Oklahoma, Ohio, and Oregon have appeared as the major construction destinations for new cloud-based datacenters. The SaaS market in the US is expected to grow at a CAGR of over 15% during the forecast period 2018?2024.
The following factors are expected to contribute to the growth of the US data center market during the forecast period:
• Growing Investment from Colocation Providers
• Artificial Intelligence Workload boosting Liquid Cooling Adoption in Data Centers
• Growing Demand for Flash Storage in Cloud Environments
• The emergence of QLC NAND Flash Drives
• Increasing Popularity of Software-Defined Data Centers
• Growing Renewable Procurement to Power Data Centers Investments
This market research report on the US data center market cover market sizing and forecast, market share, industry trends, growth drivers, and vendor analysis. The market study includes insights on the segmentation by IT infrastructure (server infrastructure, storage infrastructure, and network infrastructure), electrical infrastructure (Uninterruptible Power Supply (UPS) systems, generators, rack power distribution units, transfer switches & switch gears, and other electrical infrastructure), mechanical infrastructure (cooling systems, racks, and other mechanical infrastructure), cooling systems (CRAC & CRAH, chiller units, cooling towers & dry coolers, and other cooling units), cooling technique (air-based cooling technique and liquid-based cooling technique), facility type (small data centers, medium-sized, and hyperscale data center), general construction (building development, installation & commissioning services, building design, physical security, and data center infrastructure management (DCIM)), tier standards (Tier I & II, Tier III, and Tier IV), and geography (North Eastern US, South Eastern US, Mid-Western US, South Western US, and Western US).
The report considers the present scenario of the US data center market during the forecast period and its market dynamics for the period 2018?2024. It covers a detailed overview of several market growth enablers, restraints, and trends. The report profiles and examines leading companies and several other prominent companies operating in the US data center market.
US Data Center Market: Segmentation
This research report includes detailed market segmentation by IT infrastructure, electrical infrastructure, mechanical infrastructure, facility type, general construction, tier standards, and geography. The hyperscale data center market is the largest segment in the US data center market by facilities. Facebook, Google, Digital Realty, Quality Technology Services, and Switch are the major investors in the construction of hyperscale data centers. The growth in submarine cable projects and increased investments are expected to augment the hyperscale data center segment. Digital Realty, Cologix, COPT Data Center, Raging Wire Data Center, and Sabey Data Center are the major investors in the medium-sized data centers market in the US. The Southeast US has the highest number of medium data center facilities due to the maximum investments from investors.
In 2018, the US server market and storage witnessed significant growth due to the rise in the construction of data centers. The US is also a hub of hyperscale service providers. Therefore, the server market is likely to witness growth customized and high-performance servers from ODM vendors. The networking infrastructure market in the US is witnessing growth due to the increase in the data center traffic. In 2018, the 100GbE switches experienced adoption among several data centers in the US. The emergence of 200/400 GbE ports in data centers has also compelled vendors to update their product portfolio with 200/400 GbE ports.
The lithium-ion UPS systems market in the US is expected to grow among service operators as they help to reduce the OPEX. Also, the market is receiving a significant healthy boost due to the adoption of nickel-zinc UPS systems. The increased construction of large and hyperscale data center facilities is expected to increase the demand for generators in the US market during the forecast period. The transfer switches and switchgear market in the US is expected to grow due to the increased construction of data centers in the region. The increased innovations and demand for rack PDUs are likely to increase in the US data center market.
Data centers in the South Eastern and Western US are adopting air- and water-cooled chillers with the economizer mode to facilitate partial cooling of the facility using outside air. Further, the use of artificial intelligence in data centers is growing, which has successfully decreased the OPEX up to 40%. The market is likely to adopt innovative cooling solutions, including multipurpose cooling systems and modular infrastructure solutions. With changing technologies and the increasing use of high-density servers, the rack infrastructure has become a significant element as the need to efficiently host servers, handle wires, and enable airflow to ensure optimum data center efficiency is growing.
The market is observing the increased adoption of evaporative coolers that facilitate partial cooling with indoor CRAC units among data centers. The use of traditional air-cooled systems will continue among data centers that operate less than 5 kW per rack mainly among tier II facilities. Water-based cooling adoption was witnessed among multiple facilities in the US and will continue to contribute to market growth.
With the increasing number of Tier III facilities, the demand for 2N redundant CRAC and CRAH units in data centers is growing to facilitate efficient data center operations. The construction of mega and hyperscale facilities is the driving factor for the increasing adoption of both CRAC and CRAH units in the US market. The adoption of cooling towers and dry coolers is high in the data centers that use chilled water for cooling purposes. As several data centers are being constructed to benefit from free cooling methods, particularly in the northern region, the implementation of indirect evaporative cooling technologies is likely to increase. Most data centers in Southeastern and Southwestern US do not require economizers/evaporative cooling solutions.
The US data center market a presence of several principle contractors with a strong base of sub-contractors. There are also many construction contractors trying to enter the data center market due to the high service potential. Infrastructure vendors are also increasingly partnering with major contractors to increase their revenue share in the industry.
The US data center market is witnessing high demand for facilities, which offer high reliability, scalability, and operational flexibility, along with effectiveness and resilience. Hence colocation and managed service suppliers prefer to work with those vendors that follow certifications and comply with sustainability practices issued by leading regulatory bodies, including the Uptime Institute, Leadership in Energy and Environmental Design (LEED), and the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) among others. Hence, the increased demand for environment-friendly data centers is expected to increase the share of the data center market in the US by building designs.
The US data center market by Tier III facilities is expected to reach $8.09 billion by 2024. There are around 80 facilities in the US that are Tier III certified. Although, it is expected that several service operators will shift to Tier IV standard facilities due to the increasing growth in rack power density and critical infrastructure operations running inside facilities, there are several facilities, which follow the operational sustainability of Tier III standards, thereby maintaining their market growth. Currently, the development of Tier IV certified data center facilities is being witnessed in the Western and South-Western part of the US. Hence, the increased construction from hyperscale developers such as Facebook, Apple, Microsoft, and Google, which need fully fault-tolerant data centers is likely to increase the market share of Tier IV data centers.
Market Segmentation by IT Infrastructure
• Server Infrastructure
• StorageInfrastructure
• Network Infrastructure
Market Segmentation by Electrical Infrastructure
• UPS Systems
• Generators
• Rack Power Distribution units
• Transfer Switches and Switchgears
• Others
Market Segmentation by Mechanical Infrastructure
• CRAC & CRAH
• Chiller Units
• Cooling Towers & Dry Coolers
• Economizer & Evaporative Coolers
• Other Cooling Units
Market Segmentation by General Construction
• Building Development
• Installation &Commissioning Services
• Building Design
• Physical Security
• Data Center Infrastructure Management(DCIM)
Market Segmentation by Facility
• Small Data Centers
• Medium-sized Centers
• Hyperscale Data Centers
Market Segmentation by Tier Standard
• Tier I and Tier II
• Tier III
• Tier IV
US Data Center Market: Geography
Virginia invested the highest investment of around $2 billion, followed by North Carolina, Georgia, Alabama, Florida. The availability of a robust fiber optic connectivity and the presence of generous tax incentives are the major factors driving the share of Virginia in the South Eastern US data center market. Data centers in the South Eastern US are significantly contributing to the data center power market.
Arizona, New Mexico, Oklahoma, and Texas are the major contributors to the data center market in the South Western region of the US market. In 2018, data center operators in South Western US such as Quality Technology Services, Stream Data Center, and EdgeCore attracted significant investments of over $100 million. Texas is emerging as a center for retail colocation, wholesale colocation, powered shell, and built-to-suit initiatives. Further, factors such as strong fiber connectivity, the lowest power rates, and available capacity are major factors driving the market. The availability of favorable tax incentives is expected to emerge as the major driver during the forecast period.
The mid-western US market includes Illinois, Michigan, Minnesota, Ohio, Indiana, Missouri, Wisconsin, Iowa, Nebraska, Kansas, North Dakota, and South Dakota. Ohio and Iowa, which attract over $400 million of investment, are the major destination in this region. Favorable tax incentives, strong fiber connectivity, and economical electricity costs are among the significant driver increasing the market share of the mid-western US data center market.
The western US is expected to witness investments due to robust network connectivity and affordable energy pricing. The market is expected to witness the prominence of greenfield than brownfield data center projects. Alaska and Hawaii had the highest percentage of growth in industrial power cost in 2018 among all other regions in the Western US.
Key Countries Profiled:
• North Eastern US
• South Eastern US
• Midwestern US
• South Western US
• Western US
Key Vendor Analysis
The data center market in the US is growing in terms of greenfield, brownfield, and modular data center construction. The market is witnessing an increasing growth of data centers across the country, with high adoption of efficient and modular data center infrastructure solutions. The market has a strong presence of vendors in major categories such as IT infrastructure, electrical infrastructure, mechanical infrastructure, and general construction. Cloud service providers such as AWS, Microsoft, and Google have a strong customer base for their service offerings in the country. The data center investment in the country is driven by the growing migration of on-premise infrastructure to cloud and colocation facilities. The adoption of lithium-ion batteries, fuel cell technology, natural gas generators, intelligent PDUs, and high-voltage switch gears is expected to grow significantly during the forecast period. This is likely to increase competition in the market in terms of production efficiency and cost. Increasing partnerships with local providers, construction contractors, and modular data center offerings are likely to enhance revenues for vendors.
Key Company Profiled in US Data Center Market
• Cisco
• Dell Technologies
• Hewlett Packard Enterprise (HPE)
• IBM
• Lenovo
• NetApp
• Atos
Key Construction Contractors in US Data Center Market
• AECOM
• Corgan
• DPR Construction
• Holder Construction
• Jacobs Engineering Group
• Syska Hennessy Group
• Turner Construction
Key Infrastructure Providers in US Data Center Market
• ABB
• Airedale Air Conditioning
• Eaton
• Schneider Electric
• STULZ
• Vertiv
Key Data Center Investors in US Data Center Market
• Apple
• COPT Data Center Solutions
• CyrusOne
• Digital Realty
• Equinix
• Facebook
• Google
• Microsoft
• Stream Data Center
• Vantage Data Centre
Other Prominent IT Infrastructure Provider
• AccelStor
• DataDirect Networks (DDN)
• Fujitsu
• Hitachi Vantara
• Huawei
• Infortrend Technology
• Inspur Group
• Intel
• Kaminario
• Micron
• MiTAC Holdings
• Nimbus Data
• Pivot3
• QNAP Systems
• Quanta Cloud Technology
• Samsung
• Seagate Technology
• SK Hynix (SK Group)
• Super Micro Computer
• Synology
• Toshiba
• Violin Systems
• Western Digita
• Wiwynn (Wistron)
Prominent Construction Contractors
• Balfour Beatty US
• BlueScope Construction
• Clune Construction
• Fluor Corporation
• Fortis Construction
• Gensler
• Gilbane Building Co.
• HDR
• Hensel Phelps
• HITT Contracting
• Hoffman Construction
• JE Dunn Construction
• Morrison Hershfield
• Mortenson Construction
• Rogers-O'Brien Construction
• Structure Tone
• Walsh Group
• Whiting-Turner Contracting
Prominent Support Infrastructure Providers
• Altima Technologies (NETZOOM)
• Asetek
• Bloom Energy
• Caterpillar
• Cormant
• Cummins
• Cyber Power Systems
• Data Aire
• Delta Group
• FNT
• Generac Power System
• Green Revolution Cooling
• HighPower
• HiTec Power Protection
• Legrand
• Nlyte Software
• Nortek Humidity (Condair Group)
• Mitsubishi Electric Corporation
• MTU On-Site Energy (Rolls-Royce Power Systems AG)
• Rittal
• Trane (Ingersoll Rand)
• Tripp Lite
Prominent Data Center Investors
• CoreSite Realty Corp
• DataBank
• DC Blox
• EdgeConnex
• H5 Data Centers
• Quality Technology Services
• RagingWire Data Center (NTT)
• Sabey Data Center
• TierPoint
• T5 Data Centers
Key Market Insights Include
The report provides the following insights into the US data center market for the forecast period 2019–2024.
1. It offers comprehensive insights into current industry trends, trend forecast, and growth drivers about the US data center market.
2. The report provides the latest analysis of market share, growth drivers, challenges, and investment opportunities.
3. It offers a complete overview of market segments and the regional outlook of the US data center market.
4. The report offers a detailed overview of the vendor landscape, competitive analysis, and key market strategies to gain competitive advantage.
Read the full report: https://www.reportlinker.com/p05373410/?utm_source=PRN
About Reportlinker
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.
__________________________
Contact Clare: [email protected]
US: (339)-368-6001
Intl: +1 339-368-6001
SOURCE Reportlinker
Share this article