Asia-Pacific Data Center Colocation Markets 2021-2026 - M&A & JV To Fuel Growth / Growing Rack Power Density / Growing Edge Data Center Demand / Growth In Lithium-Ion Battery Procurement
DUBLIN, May 21, 2021 /PRNewswire/ -- The "Data Center Colocation Market in APAC - Industry Outlook and Forecast 2021-2026" report has been added to ResearchAndMarkets.com's offering.
The APAC data center colocation market by investment is expected to grow at a CAGR of over 5% during the period 2020-2026.
The demand for colocation has increased due to the COVID-19 pandemic. Increased access to internet-related services aided by nationwide lockdowns imposed by governments across APAC has driven service providers to increase their colocation spaces. Organizations in IT services, BFSI, hospitals, and education sectors have initiated remote working for employees.
Government agencies adopted cloud-based services where the confidential data of the state is stored securely. Moreover, the dependence of the education sector on the online teaching model has increased the demand for colocation services. The need for video-conferencing platforms such as Zoom, Webex, and Google Meet has experienced a steep rise.
The use of online shopping has increased significantly during the COVID-19 outbreak. Colocation service providers witnessed a strong uptake for data center spaces by existing customers owing to the growth of COVID-19-induced demand. The emergence of a new business environment in COVID-19 boosts cloud service providers, and video conferencing service providers have contributed to the colocation uptake. During the COVID-19 pandemic, cloud-service providers were the major contributors as they chose to host the data in colocation data centers instead of building their own data centers in the region.
APAC Data Center Colocation Market Segmentation
The electrical infrastructure market is likely to cross over USD 5 billion by 2026. Generators are the largest contributor to the market revenue due to the increased adoption of DRUPS systems. The adoption of UPS systems has become critical for operators and designers as they account for around 30% of facility failures. Most data centers deploy dual-power feed to overcome power outages and human errors in the deployment or maintenance stage.
The adoption of intelligent PDU solutions such as metered and monitored PDU dominates the market. The use of managed and switched PDUs is likely to grow during the forecast period. The APAC mechanical infrastructure market is growing at a CAGR of approx. 5% during 2020-2026. The need to monitor and identify cooling hotspots, temperature levels, and equipment failures has increased significantly due to the growth in power outages, thereby increasing the demand for mechanical infrastructure.
Lithium-ion UPS solutions are likely to witness high adoption from colocation providers. Modular data center operators expect to procure lithium-ion UPS systems with less than 500 kW power capacity. The adoption of single-rack prefabricated data center solutions will include single-phase lithium-ion systems with a power capacity of less than 10 kVA. The adoption of DRUPS systems will continue to grow among data colocation centers in several APAC markets.
Australia, New Zealand, Singapore, Indonesia, Thailand, and Hong Kong have witnessed high acceptance for DRUPS systems. However, some countries are witnessing low adoption of standalone diesel generators. With the increased construction of data centers across APAC, the market for transfer switches and switchgear expects to grow during the forecast period. However, switches vary significantly based on capacity supported, cost, mean time between failures (MTBF), switching time, and design.
INSIGHTS BY GEOGRAPHY
China and Hong Kong expect to contribute maximum revenue to the market, with the India data center market likely to grow a promising CAGR of over 8% during 2020-2026. China & Hong Kong are the prominent markets for data center operations in APAC. The demand for data center market is growing on account of the boom in internet users, growth in the gaming sector, the popularity of the e-commerce industry, and investments in the digitalization of enterprises.
Tier-1 cities such as Beijing, Shanghai, Shenzhen, Guangzhou, and Hong Kong are the major data center markets. In terms of investment, 39 colocation facilities contributed an investment of over USD 3.55 billion, which included projects that opened in 2020 and that are under construction and expected to be operational by June 2021. Shanghai is a preferred location for the colocation area under development, followed by Langfang and Beijing.
In terms of investment, GDS Services was the major investor in the APAC data center colocation market in 2020, with multiple expansions and newly built projects across China. It has a market share of over 17% in the market. It invested majorly in Langfang and Shanghai, where it pumped in over USD 1 billion.
Similarly, Equinix was another major investor in the APAC market in 2020 with a market share of 4.2% and invested over USD 370 million in six data centers in Singapore, Hong Kong, Tokyo, and Melbourne.
The APAC data center colocation market is highly competitive, with many providers investing in new facilities and expanding their existing ones to accommodate the demand from customers. New entrants are investing in the construction of core and shell properties across the region. These new facilities expect to be fully commissioned within two years of initial build-out.
INSIGHTS BY VENDORS
In terms of investment, GDS Services was the major investor in the APAC data center colocation market in 2020, with multiple expansions and newly built projects across China. It has a market share of over 17% in the market. It invested majorly in Langfang and Shanghai, where it pumped in over USD 1 billion.
Similarly, Equinix was another major investor in the APAC market in 2020 with a market share of 4.2% and invested over USD 370 million in six data centers in Singapore, Hong Kong, Tokyo, and Melbourne.
The APAC data center colocation market is highly competitive, with many providers investing in new facilities and expanding their existing ones to accommodate the demand from customers. New entrants are investing in the construction of core and shell properties across the region. These new facilities expect to be fully commissioned within two years of initial build-out.
KEY QUESTIONS ANSWERED:
- How big is the APAC data center colocation market?
- What is data center colocation market growth?
- How is the Asia Pacific data center colocation market segmented?
- What impact does the coronavirus (COVID-19) pandemic have on the market?
- Who are the prominent vendors in the APAC data center colocation market?
Market Dynamics
Market Opportunities & Trends
- Increased Renewable Energy Adoption Among Colocation Providers
- M&A & JV To Fuel Data Center Growth In APAC
- Growing Rack Power Density
- Growing Edge Data Center Demand
- Growth In Lithium-Ion Battery Procurement
Market Growth Enablers
- Impact Of COVID-19 On Colocation Data Centers
- Increased Investment In Hyperscale Data Centers
- Cloud, Connectivity & Hybrid Infrastructure Services Drive Colocation Demand
- Rising Demand For Retail & Wholesale Colocation Services
- Tax Incentives To Reduce Colocation Opex & Customer Cost
- Rise In Submarine Cables & Inland Connectivity
Market Restraints
- Location Constraints For Data Center Construction
- Rising Carbon Emissions From Data Center
- Power Outages & Reliability Challenges
Prominent Data Center Colocation Service Providers
- 21Vianet Group
- China Telecom
- Digital Realty
- Equinix
- GDS Services
- Global Switch
- KDDI Corporation
- Keppel Data Centres
- NEXTDC
- NTT Global Data Centers
- Shanghai Atrium (AtHub)
- ST Telemedia Global Data Centres
- SUNeVision (iAdvantage)
Other Prominent Data Center Colocation Service Providers
- AirTrunk Operating
- AT TOKYO
- BDx (Big Data Exchange)
- Bridge Data Centres
- Canberra Data Centres
- Chayora
- China Mobile
- China Unicom
- Chindata
- Chunghwa Telecom
- Colt Data Centre Services (COLT DCS)
- CTRLS Datacenters
- Internet Initiative Japan (IIJ)
- Iron Mountain (IO)
- Internet Thailand Public Company (INET)
- Katalyst Data Management
- KT Corporation (Korea Telecom)
- Neo Telemedia
- PCCW Solutions
- PLDT Enterprise
- Pi Data Centers
- Princeton Digital Group (PDG)
- Telekomunikasi Indonesia
- Regal Orion
- Sify Technologies
- Singtel
- Beijing Sinnet Technology
- Space DC
- Tenglong Holdings Group (Tamron)
- Yotta Infrastructure (Hiranandani Group)
- VADS
New Entrants
- Digital Edge Ventures
- Mantra Data Centers
- Stratus DC Management
- AdaniConneX
For more information about this report visit https://www.researchandmarkets.com/r/u1udw4
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