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The data center general construction market is estimated to grow at a CAGR of 10.26% between 2022 and 2027. The size of the market is forecast to increase by USD 10,249.4 million. The growth of the market depends on several factors, including an increase in investment in data centers, growth in the adoption of colocation services, and high demand for cloud-based services.
This report extensively covers market segmentation by type (base building shell construction, architecture planning, and designing), end-user (BFSI, government, manufacturing, media and entertainment, and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The reports categorize the global data center general construction market as a part of the global internet services and infrastructure market, which covers companies providing services and infrastructure for the Internet industry, including data centers and cloud networking and storage infrastructure. It also includes companies providing hosting services. Technavio calculates the global IT services market size based on the combined revenue generated by companies engaged in the provision of all types of IT services, including BPO services. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The increase in investment in data centers is notably driving the market growth, although factors such as delays in delivering the projects on time may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Data Center General Construction Market Driver
The increase in investment in data centers is notably driving the data center general construction market growth. The need for data centers is rising owing to an increase in the adoption of cloud services and the generation of a considerable volume of data across enterprises. Some companies, such as Google, Amazon.com, Apple, and Facebook, are investing significantly in building their own data centers. They approach general construction providers for design and engineering services. For instance, in September 2018, Facebook announced its partnership with the general construction provider DPR Construction to build a data center in Central Oregon, US.
An increase in investments by enterprises to build their own data centers will have a positive impact on the growth of the global data center general construction market. For instance, in April 2019, Amazon.com Inc. announced that it would open cloud data centers in Indonesia. Thus, an increase in investments toward the construction of data center facilities by enterprises such as Facebook, Amazon.com, Apple, and Google will increase the demand for design and construction management services, which will drive the growth of the global data center general construction market during the forecast period.
Key Data Center General Construction Market Trend
Focus on the construction of green data centers is a key trend influencing the data center general construction market growth. Green data centers are energy efficient and are built to minimize environmental impact. They use low-emission building materials to create sustainable ecosystems through efficient waste recycling. The construction and operation of green data centers include advanced technologies and strategies. Enterprises are focusing on constructing green data centers.
For instance, in April 2019, Flipkart announced its plan to open a second green data center in Telangana, India, to strengthen its technological infrastructure. Increased power consumption by data centers results in higher pricing of services offered to end-users as well as the OPEX of enterprises. The use of renewable energy sources, free cooling, and waste recycling are some of the measures being implemented in data centers to improve efficiency and performance. Thus, growing interest in green data centers will support the growth of the global data center general construction market during the forecast period.
Key Data Center General Construction Market Challenge
Delays in delivering the projects on time may impede the data center general construction market growth. One of the challenges faced by vendors is meeting the contractual schedule and performance requirements, which adversely affects the operating results. The scheduled delays generally exceed the projected cost for a particular project. Project performance can also be affected by numerous factors beyond vendors' control, including unavoidable delays from governmental inaction, public opposition, inability to obtain financing, weather conditions, unavailability of supply materials, changes in the project scope of services requested by clients, industrial accidents, environmental hazards, and labor disruptions.
For instance, in March 2019, Global Switch opened the 30MVA Singapore data center, which was delayed several times since the planning approval in 2011. Changes in the project scope were among the reasons for delays. These factors damage the reputation of vendors in the industry and among clients. As a result, they may lose big deals and contracts. Thus, delays in delivering the projects on time can become a major challenge for the growth of the global data center general construction market during the forecast period.
Key Data Center General Construction Market Customer Landscape
The report includes the adoption lifecycle of the market, from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Data Center General Construction Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and service launches, to enhance their presence in the market.
ABB - The company offers data center general construction solutions such as power distribution, smart automation, and server room solutions.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the base building shell construction segment will be significant during the forecast period. The base building shell construction segment of the global data center general construction market is expected to grow steadily during the forecast period. Base building shell construction includes building permits, local taxes, land excavation and grading, roadways, tie-ins to utilities, and building shell costs. These cost factors are considered while constructing a base building shell construction.
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The base building shell construction segment shows a gradual increase in the market share of USD 6,117.88 million in 2017 and will continue to grow by 2021. There are various benefits provided by general construction service providers while constructing a data center. This results in better quality, lower costs, and faster delivery. Thus, a rise in investment in data center construction globally will increase the demand for general construction services to manage the consulting and base building shell construction. This will drive the growth of the market in focus during the forecast period.
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North America is projected to contribute 31% of the market's growth by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The data center general construction market in North America will witness steady growth during the forecast period. The demand for data centers in the region is being driven by an increase in consumer and enterprise data traffic. IP traffic is experiencing exponential growth, mainly driven by data-capable devices and high-bandwidth applications. North America has been dominated by the US and Canada, which are the major hubs in data center construction.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. Lockdown restrictions were relaxed in the second half of 2020 owing to large-scale vaccination drives across North America. This led to the resumption of operations in various industries, such as BFSI, IT, manufacturing, and others, since the first half of 2021, which is expected to recover the demand for data center infrastructure during the forecast period. Moreover, the increase in the adoption of cloud services and digitization led to the emergence of a new business environment and data. Such factors are expected to drive the growth of the data center general construction market in North America during the forecast period.
The report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by type, end-user, and region.
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Data Center General Construction Market Scope |
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Report Coverage |
Details |
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Page number |
182 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 10.26% |
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Market growth 2023-2027 |
USD 10,249.4 million |
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Market structure |
Fragmented |
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YoY growth (%) |
10.05 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 31% |
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Key countries |
US, Canada, China, Japan, UK, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ABB Ltd., AECOM, Arup Group Ltd., Brasfield and Gorrie LLC, CORGAN, CyrusOne Inc., Digital Realty Trust Inc., DPR Construction Inc., HDR Inc., Jacobs Engineering Group Inc, Jones Engineering Holdings Ltd., Legrand SA, M. A. Mortenson Co., Page Southerland Page Inc., Schneider Electric SE, Skanska AB, STO Building Group, The Walsh Group, Turner Construction Co., and Vertiv Holdings Co. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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