The APAC data center power market is expected to grow at a CAGR of over 8% during the period 2018-2024.
The increased construction of hyperscale facilities is likely to boost the data center power market in APAC. China, Hong Kong, Singapore, India, South Korea, Thailand, and Japan are witnessing major data center development. China is to lead the market with multiple hyperscale investments from cloud and colocation providers. In the Southeast Asia region, Singapore is the preferred market to construct mega facilities. The construction of these facilities is likely to grow during the forecast period.
China and Hong Kong are the leading revenue generators in the region, followed by India. In India, Adani Group announced to invest $10 billion in the development of data center parks in 2019. Alibaba, Tencent, Baidu, and Huawei, which are major clients for GDS Services, contributed over 50% of revenue in 2018. Hong Kong is expected to witness significant growth due to the construction and expansion of mega vertical projects, which are being colocated by internet and cloud service providers.
The following factors are expected to contribute to the growth of the APAC data center power market during the forecast period:
Digitalization drives Cloud Data Center Investments
Increased Construction of Hyperscale Data Centers
The emergence of Lithium-ion Batteries in Data Centers
The report considers the present scenario of the market during the forecast period and its market dynamics for the period 20182024. 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 market.
APAC Data Center Power Market: Segmentation
This research report includes detailed segmentation by electrical infrastructure, ups systems, generators, tier standards, and geography.
The UPS systems are widely adopted to provide electricity backup for cooling systems. The adoption of lithium-ion batteries is likely to increase significantly during the forecast period. The usage of generators in the region is expected to remain high. The adoption of Diesel Rotary UPS (DRUPS) is gaining traction in countries such as Australia & New Zealand, Singapore, and Hong Kong.
With the increased construction of data centers in the region, the usage of transfer switches and switchgears is expected to grow during the forecast period. Most facilities in China & Hong Kong and Australia are adopting medium- to high-voltage switchgears. The growing awareness to reduce power consumption and wastage is driving the adoption of intelligent PDUs.
The demand for 150 kVA UPS systems is high among small- and medium-sized facilities on account of the grid inconsistency in several countries. The adoption of <=500 kVA systems will be higher among prefabricated operators than traditional brick-and-mortar facilities. However, several small- and medium-sized facilities with a density of less than 1 MW capacity are adopting <=500 kVA UPS systems. Therefore, the construction of prefabricated facilities and the increasing deployment of OCP-based infrastructure design are expected to propel growth in the next few years. The rise in mega data center projects, which are designed to be of Tier III and Tier IV standards in China & Hong Kong, is likely to increase the deployment of 2N redundant UPS systems.
Diesel generators account for a major share of the APAC power market. The adoption of these systems is higher than natural gas or bi-fuel generators. China and India are likely to be the major revenue contributors for the segment during the forecast period. Most facilities in APAC are adopting N+N redundant generators. With the increasing popularity of edge data centers, the adoption of < 1MW generators is expected to grow during the forecast period. However, strict regulations relating to carbon dioxide emissions are likely to decrease the share of the segment.
The rise in the construction of tier III facilities is increasing owing to the growing need for redundant components to support mission-critical applications. In the APAC region, several under-developed projects fall under the Tier III category, and the trend is likely to continue during the forecast period. Tier IV facilities generate high revenue with focused investment on highly efficient cooling systems. Tier IV facilities are expected to increase on account of the significant investment announcements from Apple, Facebook, AWS, Microsoft, and Google in the region.
Market Segmentation by Infrastructure
UPS Systems
Generators
Transfer Switches and Switchgears
Rack PDU
Market Segmentation by UPS Systems
<=500 kVA
500-1000 kVA
>1000kVA
Market Segmentation by Generators
<=1MW
1-2MW
>2MW
Market Segmentation by Tier Standards
Tier I &II
Tier III
Tier IV
Insights by Geography
The APAC region is expected to witness the implementation of edge computing in several countries, particularly China and India, to accommodate data growth. Several firms will also invest actively in renewable projects to run their operations. The APAC market will witness the implementation of several government regulations to decrease carbon emissions. The average PUE of data centers in the region is around 2.0, which is likely to decrease to about 1.50 by adopting innovative and energy-efficient infrastructure solutions over the forecast period.
Key Vendor Analysis
The data center power market has become highly competitive, owing to the increased demand for energy-efficient infrastructure solutions. Changing requirements of operators are prompting vendors to develop products that have more than 90% efficiency in carrying out their operations. ABB, Eaton, Schneider Electric, and Vertiv are the leading players in the power infrastructure market.
Leading vendors offering UPS systems and generators consider adding fuel deployment expertise to their portfolio as standalone solutions or through partnerships with small-scale fuel cell suppliers. The increasing deployment of OCP-based infrastructure design is likely to bring a shift in demand.
Key Market Insights include:
The report provides the following insights into the APAC data center power market for the forecast period 2019-2024.
It offers comprehensive insights into current industry trends, trend forecast, and growth drivers about the APAC data center power market.
The report provides the latest analysis of share, growth drivers, challenges, and investment opportunities.
It offers a complete overview of segments and the regional outlook of the APAC data center power market.
The report offers a detailed overview of the vendor landscape, competitive analysis, and key strategies to gain competitive advantage.
Market Dynamics
Market Growth Enablers
Digitalization Drives Cloud Data Center Investments
Increased Construction of Hyperscale Data Centers
High Adoption of Modular Power Infrastructure & Data Centers
Growing Demand for Colocation & Managed Service Providers
Construction of Data Centers with Rack Power of >10 kW
Market Growth Restraints
Issues with Power Outages & Reliability
Budget Constraints Limiting Operations of Efficient Data Centers
Location Constraints for Data center Construction
Increased Carbon Emissions from Data Centers
Market Opportunities & Trends
Rising Procurement of Renewable Energy for Data Centers
Software-defined Power to Monitor & Automate Power Infrastructure
Emergence of Lithium-ion Batteries in Data Centers
5G Deployment to Spur Colocation Investments in Edge Locations
