Enjoy complimentary customisation on priority with our Enterprise License!
The data center mechanical construction market size is estimated to grow by USD 18.12 billion at a CAGR of 14.76% between 2023 and 2028. The data center landscape is undergoing significant transformation, driven by substantial investments in new construction and expansions. This trend is fueled by the increasing adoption of High Performance Computing (HPC) solutions across enterprises. HPC enables organizations to process large amounts of data and perform complex calculations, thereby driving innovation and competitive advantage. Additionally, the emergence of mini data centers is gaining traction due to their cost-effectiveness and flexibility. Mini data centers offer a compact, modular solution for housing IT infrastructure, making them an attractive option for businesses with space constraints or remote operations. These developments underscore the importance of data infrastructure in today's digital economy and the ongoing efforts to optimize and scale IT capabilities.
For More Highlights About this Report, Request Free Sample
The market encompasses the creation and installation of mechanical systems in data centers. Key components of this market include electrical installations, mechanical installations, and site selection for data center construction. Data storage and processing capabilities are crucial considerations in data center design, and the integration of edge computing and 5G technology is driving innovation in this space. Security is a paramount concern in data center construction, with prefabricated components and digital transformation initiatives playing essential roles in enhancing security and reducing construction time. Cloud services, hyperscale facilities, and colocation services are significant sectors within the IT infrastructure segment, which is experiencing growth due to the increasing demand for IT and telecom services. Project management, sustainability, and networking equipment are also integral parts of data center construction. The IT projects in the Tier 3 and Tier 4 segments require specialized engineering firms and construction companies to ensure optimal design and implementation of mechanical systems. The market for data center mechanical construction is expected to expand significantly as businesses continue to invest in advanced IT infrastructure. Our researchers analyzed the data with 2023 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.
Growing investments in data center construction is notably driving market growth. The expansion of IT infrastructure, particularly in the realm of automation and networking communication technologies, has led to a significant increase in data traffic and subsequent demand for data center construction worldwide. This trend is driven by the IT projects of various industries, hyperscale facilities of public cloud providers, and the growing popularity of colocation services.
Furthermore, the construction of these data centers necessitates the deployment of power distribution systems, cooling solutions, and networking equipment. Skilled professionals are required in large numbers to ensure the successful implementation of these projects. The IT infrastructure segment and the Tier 3 and Tier 4 segments are expected to witness substantial growth during the forecast period. Amazon's recent establishment of a data center, AWS, in India, is a testament to this global trend. Thus, such factors are driving the growth of the market during the forecast period.
Growing investment in hyperscale data centers is the key trend in the market. The Data Center Mechanical Construction Market is experiencing significant growth due to the increasing demand for advanced IT infrastructure solutions. Hyperscale data centers, a key segment of this market, are being constructed at an accelerated pace to accommodate the expanding needs of organizations for handling large volumes of data. These facilities, which house IT projects for public cloud providers, colocation services, and the IT and telecom industries, necessitate the integration of numerous racks for servers, storage devices, and networking equipment.
Moreover, power distribution and cooling solutions are critical components of data center mechanical construction. Skilled professionals are required to ensure the proper installation and maintenance of these systems. The IT infrastructure segment, particularly the Tier 3 and Tier 4 segments, is driving the demand for advanced mechanical construction solutions in data centers. The integration of hyperscale facilities into the existing IT infrastructure requires wider racks and new server designs to accommodate the increased components. Overall, the Data Center Mechanical Construction Market is poised for continued growth as the digital transformation of businesses continues to drive the need for more robust and efficient IT infrastructure solutions. Thus, such trends will shape the growth of the market during the forecast period.
Focus on data center consolidation is the major challenge that affects the growth of the market. In the realm of IT infrastructure, the market is experiencing significant shifts. Power distribution and cooling solutions are pivotal components of this market, as enterprises prioritize energy efficiency and cost savings. Skilled professionals are essential for the implementation of IT projects in hyperscale facilities, ensuring seamless integration of networking equipment and colocation services. The IT infrastructure segment and the Tier 3 and Tier 4 segments are witnessing substantial growth due to the increasing adoption of IaaS and cloud services by software companies. Public cloud providers are leading this trend, as they reduce the need for individual data centers and promote consolidation.
Furthermore, this consolidation hinders the sales of traditional infrastructure and decreases the overall footprint of data centers globally. Power distribution systems are becoming more sophisticated, with advanced features such as redundancy and scalability. Cooling solutions are evolving to accommodate the increasing density of IT equipment, with liquid cooling gaining popularity. Networking equipment is also becoming more efficient and versatile, enabling better connectivity and faster data transfer. In conclusion, the Data Center Mechanical Construction Market is undergoing transformative changes, driven by the IT and telecom industries' demands for more efficient, cost-effective, and scalable solutions. Power distribution, cooling, and networking equipment are at the forefront of these changes, as enterprises focus on reducing their environmental footprint and optimizing their IT operations. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Asetek AS - The company offers data center mechnical constructions under the brand name of InRackCDU for liquid cooled data centers.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the cooling solutions segment will be significant during the forecast period. The Data Center Mechanical Construction Market encompasses the building and installation of mechanical infrastructure in data centers, which facilitate data storage and processing capabilities. This market is driven by the increasing adoption of edge computing, 5G technology, and digital transformation initiatives. Cloud services, including cloud computing and big data, are significant contributors to the market's growth.
Get a glance at the market share of various regions Download the PDF Sample
The cooling solutions segment showed a gradual increase in the market share of USD 9.01 billion in 2018. Construction companies and engineering firms play a crucial role in site selection, architectural design, electrical installations, and mechanical installations. Sustainability and energy efficiency are essential considerations in data center construction. Renewable energy sources, efficient cooling systems, and complex infrastructure requirements are key components of sustainable data centers. Compliance with various standards, such as redundancy, uptime, and mission-critical applications, is essential for healthcare and finance industries, which rely heavily on electrical and mechanical infrastructure. The market for data center mechanical construction is capital-intensive, with significant investments required in generators, transfer switches, switchgears, and other electrical and mechanical infrastructure. Skilled labor is essential for the installation and maintenance of these systems. The market is also influenced by the increasing adoption of hyperscale data centers, multi-tenant facilities, and colocation facilities. Security is a critical concern in data center construction, with measures such as compliance standards and redundancy ensuring the protection of sensitive data. The integration of artificial intelligence (AI) and other advanced technologies, such as 5G and big data, is transforming the data center landscape, creating new opportunities and challenges for market participants.
For more insights on the market share of various regions Download PDF Sample now!
North America is estimated to contribute 47% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market encompasses the building and installation of mechanical infrastructure in data centers, which facilitate data storage and processing capabilities. This market is driven by the increasing adoption of edge computing, 5G technology, and digital transformation initiatives. Cloud services, including cloud computing and big data, are significant contributors to the market's growth. Construction companies and engineering firms play a crucial role in site selection, architectural design, electrical installations, and mechanical installations. Sustainability and energy efficiency are essential considerations in data center construction. Renewable energy sources, efficient cooling systems, and complex infrastructure requirements are key components of sustainable data centers. Compliance with various standards, such as redundancy, uptime, and mission-critical applications, is essential for healthcare and finance industries, which rely heavily on electrical and mechanical infrastructure. The market for data center mechanical construction is capital-intensive, with significant investments required in generators, transfer switches, switchgears, and other electrical and mechanical infrastructure. Skilled labor is essential for the installation and maintenance of these systems.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Data Center Construction Market: Data Center Construction Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Japan, UK, Germany - Size and Forecast
Data Center Market: Data Center Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, Germany, UK, China, Canada - Size and Forecast
Data Center General Construction Market: Data Center General Construction Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Canada, China, UK, Germany - Size and Forecast
The market is a significant sector in the ever-evolving digital landscape. This market encompasses the design, engineering, and implementation of mechanical systems for data centers. Mechanical systems include cooling, power generation, and other essential infrastructure components. The construction of data centers requires a comprehensive understanding of mechanical systems to ensure optimal performance and reliability. The market for data center mechanical construction is driven by the increasing demand for digital services and the need for businesses to store and process large amounts of data. Moreover, the adoption of cloud computing and edge computing technologies is fueling the growth of the data center mechanical construction market.
Furthermore, the use of advanced technologies such as artificial intelligence, machine learning, and the Internet of Things (IoT) is also contributing to the market's expansion. The construction of data centers involves several stages, including planning, design, procurement, and execution. Mechanical systems play a crucial role in each stage, from the initial design phase to the final commissioning and maintenance of the data center. In conclusion, the market is a dynamic and growing sector that is essential to the digital economy. The market's growth is driven by the increasing demand for digital services, the adoption of advanced technologies, and the need for reliable and efficient mechanical systems in data centers.
|
Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
155 |
|
Base year |
2023 |
|
Historic period |
2018 - 2022 |
|
Forecast period |
2024-2028 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 14.76% |
|
Market growth 2024-2028 |
USD 18.12 billion |
|
Market structure |
Fragmented |
|
YoY growth 2023-2024(%) |
12.55 |
|
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
|
Performing market contribution |
North America at 47% |
|
Key countries |
US, China, UK, Australia, and Japan |
|
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
ABB Ltd., Asetek, Black Box Corp, Coolit Systems, Delta Electronics Inc., Eaton Corp. Plc, Equinix Inc., Friedhelm Loh Stiftung and Co. KG, Green Revolution Cooling Inc., International Business Machines Corp., King Slide Works Co. Ltd., Legrand SA, LiquidStack B.V., Munters Group AB, NetRack Enclosures Pvt. Ltd., Schneider Electric SE, STULZ GmbH, Submer Technologies SL, Super Micro Computer Inc., and Vertiv Holdings Co. |
|
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, Market condition analysis for market forecast period |
|
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. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.
Get the report (PDF) sent to your email within minutes.