Market Research Future (MRFR), in its new research report, asserts that the global market is booming and poised to expand signficantly over the review period, registering a exponential market revenue of 31.91 billion and a moderate 9% CAGR in the forecast period.
Drivers and Restraints
The IoT is using a web of numerou resources such as computing economics, data analytics, rising utilization of IP- Based networking, cloud computing, and others that need a proper flow of data owing to which the gowth in the data center construction market can be witnessed.
The data center construction market is also witnessing a considerable boost from data center facilities founded by companies such as Google, Microsoft, Amazon, and Facebook. The surge can be attributed to cloud computing, which has gained notable superiority in the past few years, and its evolution safeguards the outlook of the market. These factors involve data center construction which in the coming years can gain considerable momentum as suggested by MRFR in its report.
On the other hand, the initial cost is pretty high that can put a rein on the market. The construction of the site comprises labor cost, power cost, site acquisition, net taxes, construction cost, equipment cost, machinery cost, and labor availability that can put a huge tab on the leger — incurring such a substantial expense at the beginning of the project or as an accumulation in the midway limiting many companies from implementing such a plan.
Based on the design type, the market is segmented into electrical construction and mechanical construction. The electrical segment is the leading and the fastest-growing one with a predicted market value of USD 16.99 billion over the forecast period.
Based on the tier type, the market is sub-segmented into tier1, tier3, tier2, and tier4. Tier 4 has the edge over other segments and is poised the highest CAGR in the coming years as well. A moderate CAGR of 10.4% can ensure its position in the segment over the forecast period.
Vertical-wise segmentation of the market includes healthcare, BFSI, IT & telecommunication, oil and energy, media & entertainment, and the public sector. IT & telecom to lead the market from the front with an estimated CAGR of 10.8% during the forecast period.
Geographically, the data center construction market span across regions namely, Europe, North America, Asia Pacific, and Rest-of-the-World.
Among all the regions, the North American region is considered to experience a significant market share owing to the sophisticated technology coupled with the augmenting demand for security, storage of data, and faster operation. Canada, the United States, and Mexico offer huge investments for research and development activities of big data and analytics which requires data centers to process and store the data. Such factors are estimated to trigger the demand for data center construction in this region.
The Asia Pacific region is estimated to be the fastest growing market owing to the presence of nations with high population. Also, the presence of IT & software industries coupled with the increasing demand for telecommunication applications is likely to fuel the market growth in this region. China has generated the highest revenue of USD 1625.7 million and is estimated to register a CAGR of 11.8% during the forecast period.
March 2018: Facebook has recently planned to build a data center worth USD 2.5 billion. An initial investment has been made worth USD 750 million. The data center extends to about 970,000 sq. ft.
Data Center Construction Market is Projected 9% CAGR during forecast period 2017 to 2023, Data…