DUBLIN--(BUSINESS WIRE)--The "Data Center Construction Market in Middle East & Africa - Industry Outlook and Forecast 2019-2024" report has been added to ResearchAndMarkets.com's offering.
The MEA data center construction market is expected to reach $1 billion, growing at a CAGR of 9 % during 20182014.
Increasing smartphone users, growing broadband connectivity, rising adoption of new technologies, and high demand for colocation services are factors driving the MEA data center construction market. The investment in the data center market in Middle East and Africa (MEA) region is growing significantly, aided by the construction of data center facilities by telecommunication providers, enterprises, government, cloud and colocation service providers.
In the last few years, the MEA data center construction market has witnessed the entry of hyperscale data center service providers. The growing application of cloud-based SaaS solutions will be a predominant driver for increased hyperscale investments in the market. Recently, Alibaba, AWS, and Microsoft have shown interest in the cloud service market in MEA.
AWS, Microsoft, icolo.io, MainOne, Liquid Telecommunications, Internet Solutions, Global Data Center, Kenya Government, Telkom Kenya, and Algerian Customs will carry out datacenter investments in 2019. The formation of the African Datacenter Association is likely to aid the MEA data center construction market. High demand for colocation services in sectors such as retail/e-commerce, BFSI, healthcare, technology, and transportation is expected to strengthen the MEA data center construction market.
Data Center Construction Market: Segmentation
This market research report includes a detailed segmentation of the market by electrical infrastructure, mechanical infrastructure, tier standards, general construction, and countries. The MEA data center construction market by electrical infrastructure is classified into UPS system, generators, transfer switches and switchgear, rack PDUs, and other electrical infrastructure. The UPS system segment dominated the market in 2018 and is expected to grow at a CAGR of approx. 9% during the forecast period.
The MEA data center construction market by general construction includes building design services, building development (site preparation and structural development), security (cameras, access systems, and perimeter protection), DCIM (data center infrastructure management software), and installation and commissioning services. The general construction segment is the fastest expanding segment in terms of revenue, growing at a CAGR of about 10%.
The MEA data center construction market will witness both greenfield and modular datacenter deployment. The shortage of skilled labors will be a significant challenge in the market as it will increase the dependency on global contractors and modular and infrastructure service providers. The increasing OPEX will increase the adoption of DCIM solutions, and the rapid growth in colocation data centers will increase the investment in physical security systems in the MEA market.
Market Dynamics
Market Growth Enablers
- Cloud Adoption Fueling Data Center Investment
- Migration from Server Room to Colocation & Managed Services
- Support from Government to Grow Digital Economy
- Big Data and IoT to Fuel Additional Growth
- Location Constraints for Data Center Construction
- Issues with Power Outages and Fluctuations
- Budgets Containers and Meagre Investment Support
- Increased Adoption of Prefabricated Data Center Solutions
- Investments to Improve Broadband Connectivity
- Rising Investments in Hyperscale Facilities
- Growing Emphasis on Renewable Energy in Data Centers
Vendors' initiatives toward cost reduction of efficient infrastructure are expected to increase market growth in the MEA region. Infrastructure resellers and distributors are expected to compete with each other in the region. The demand for modular datacenters that reduce space in datacenters and support high-density operations is expected to grow during the forecast period.
Partnerships with local and modular datacenter service providers will increase revenues for global vendors operating in the market. The need for installation, commissioning, and maintenance services will generate local job opportunities in the market.
Key Markets Participants in the MEA Data Center Construction Market
- ALEC Engineering and Contracting
- Atkins
- Aveng Grinaker
- Concor
- Edarat Group
- Etix Everywhere
- Future-Tech
- Harinsa Qatar
- Huawei
- ICS Nett
- ISG
- KAR Group
- Laing O'Rourke
- McLaren Construction Group
- NOVA Mission Critical
- QATAR SITE & POWER (QSP)
- Red Engineering
Infrastructure Providers
- ABB
- Caterpillar
- Cummins
- Eaton
- Shenzhen Envicool Technology
- EURO-DIESEL
- Hitec Power Protection
- Legrand Group
- MTU Onsite Energy (Rolls-Royce Power Systems AG)
- Rittal
- Schneider Electric
- STULZ
- Vertiv
Data Center Investors
- Africa Data Centres
- Amazon Web Service (AWS)
- Batelco
- Equinix
- Global Data Center
- GPX Global Systems
- Gulf Data Hub
- icolo.io
- Internet Solutions
- Khazna Data Centers
- Liquid Telecommunications
- MainOne
- Microsoft
- Mobily
- Ooredoo QSC
- Telkom Kenya
- Teraco Data Environments
- Turkcell
