Data Center - Americas

Americas

Revenue in the Data Center market is projected to reach US$147.80bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$66.59bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 10.58%, resulting in a market volume of US$244.40bn by 2029.
In global comparison, most revenue will be generated in the United States (US$123.20bn in 2024).

Key regions: United States, Germany, India, Japan, China

Definition:

The Data Center market is a critical segment of the technology industry focusing on supplying and managing physical infrastructure necessary for hosting and operating IT systems, primarily servers, storage, and network equipment. This market spans from traditional in-house data centers to sophisticated facilities offered by specialized providers, covering services like hosting, shared data center facilities, and managed data center solutions. It targets a diverse client base, ranging from small businesses to large enterprises, offering flexible, scalable solutions for their IT infrastructure needs. This sector is integral to the efficient functioning and security of IT operations in various organizations.

Structure:

The Data Center market is structured in three markets based on the services model provided by the companies.

The Server market covers the resources and services related to servers, integral for hosting websites, managing databases, and supporting cloud computing.
The Storage market covers the resources and services related to data storage systems, crucial for archiving, data backup, and ensuring data recovery.
The Network Infrastructure market covers the resources and services related to network hardware essential for ensuring connectivity, data transmission, and network security.

Additional Information:

The Data Center market includes revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Market values represent revenues paid to primary vendors at the manufacturer price level either directly or through distribution channels (excluding VAT). Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players in the Data Center market include companies such as Dell, HPE, Huawei, and Ericsson.

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Market

Region

Region comparison

Currency

Analyst Opinion

The Americas Data Center market is experiencing minimal growth due to factors such as saturated server, storage, and network infrastructure sub-markets and slow adoption of digital technologies. Lowered demand and cost efficiency concerns are impacting the market's growth rate.

Customer preferences: As data centers continue to play a crucial role in powering the growing digital economy, consumers are placing a greater emphasis on sustainability and energy efficiency. This has led to a rise in demand for green data centers, which utilize renewable energy sources and implement energy-efficient technologies. Additionally, the increasing adoption of cloud computing and edge computing has shifted consumer preferences towards flexible and scalable data center solutions.

Trends in the market: In the Americas, the Data Center Market is experiencing a shift towards cloud-based solutions, as organizations seek more efficient and cost-effective ways to store and manage their data. This trend is driven by the increasing demand for data storage and processing capabilities, as well as the growing adoption of emerging technologies such as AI and IoT. These advancements not only offer improved scalability and flexibility, but also allow for better data analysis and decision-making. As a result, industry stakeholders are investing in expanding their cloud infrastructure and services, while also exploring partnerships and collaborations to stay competitive in the market. This trend is expected to continue in the coming years, with potential implications for the traditional data center market and the overall IT industry.

Local special circumstances: In the Americas, the Data Center Market is heavily influenced by the region's advanced technological infrastructure and high demand for cloud services. In the United States, the market is driven by the need for secure data storage and processing, especially in industries like finance and healthcare. In contrast, the Latin American market is seeing growth due to the increasing adoption of cloud services and government initiatives promoting digital transformation. Additionally, the region's geographic diversity and varying levels of internet connectivity pose unique challenges and opportunities for data center providers.

Underlying macroeconomic factors: The Americas data center market is heavily influenced by macroeconomic factors such as global economic trends, national economic health, and fiscal policies. As the demand for data storage and management continues to grow, countries with strong economic stability and favorable fiscal policies are experiencing faster market growth compared to those with economic challenges. Additionally, the increasing reliance on digital technologies in various industries is driving the need for data centers, making investment in digital infrastructure a key factor in market performance. Moreover, the ongoing digital transformation in the region and the increasing adoption of cloud computing are further boosting the growth of the data center market in the Americas.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on hardware-related expenses of businesses for setting up and maintaining an IT infrastructure.

Modeling approach / Market size:

Market sizes are determined through a top-down approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports and national statistical offices. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of digitization. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques, such as exponential trend smoothing and the S-curve function, is based on the behavior of the relevant market.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.