Data Center

Revenue in the Data Center market is projected to reach US$33.58m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$20.78m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.85%, resulting in a market volume of US$44.61m by 2029.
In global comparison, most revenue will be generated United States (US$123.20bn in 2024).

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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Network Infrastructure, such as Cisco Routers and Switches, and Arista Network Ethernet Switches
Infrastructure Firewalls, such as Palo Alto Network Next-Generation Firewall, and Fortinet FortiGate Firewalls
Servers, such as Dell PowerEdge Servers, HPE ProLiant Servers, and IBM Power Systems
Storage, such as Dell EMC Storage Solutions, and NetApp Data Storage Systems

IT Infrastructure for Private Environments, such as VMware vSphere, and Cisco UCS
Software, such as Microsoft Windows Server, and Red Hat Enterprise Linux
Cloud Hosting Services, such as AWS, Microsoft Azure, and GCP
Network Infrastructure Services, such as IT Support Services, and Home Internet Services Providers (ISPs)

The Data Center market in Armenia has shown minimal growth, influenced by factors such as limited adoption of digital technologies, low health awareness among consumers, and challenges in online service accessibility. This is reflected in the slow growth rate of the overall market, with sub-markets of Servers, Storage, and Network Infrastructure also experiencing similar trends.

Customer preferences: As technology continues to advance in Armenia, there has been a noticeable increase in demand for data center services. This can be attributed to the growing popularity of cloud computing and the need for secure and reliable data storage solutions. Additionally, with the rise of e-commerce and online business, there has been a shift towards digital payment systems, further driving the demand for data centers. This trend is expected to continue as the country's digital infrastructure expands and businesses rely more heavily on technology for day-to-day operations.

Trends in the market: In Armenia, the Data Center Market is experiencing a surge in demand for cloud services, with businesses shifting towards digital transformation to improve efficiency and reduce costs. This trend is expected to continue as the country's economy grows and more companies adopt technology-driven strategies. As a result, there is a growing need for reliable and secure data center infrastructure, driving investments in the market. Additionally, the rise of e-commerce and online services in Armenia is leading to a higher demand for data storage and processing, fueling the growth of the Data Center Market. Industry stakeholders should focus on providing high-quality services and staying updated with technological advancements to stay competitive in this rapidly evolving market. Failure to do so may result in losing out on potential opportunities in the flourishing data center industry in Armenia.

Local special circumstances: In Armenia, the Data Center Market is thriving due to the country's strategic location at the crossroads of Europe and Asia, making it a prime location for international companies looking to expand into both regions. Additionally, the government's pro-business policies and tax incentives have attracted foreign investments in the market. The country's small size and close-knit business community also contribute to its competitive advantage, allowing for quick decision-making and efficient operations. These unique factors have propelled the Data Center Market in Armenia to become a hub for the growing demand for data storage and management services in the region.

Underlying macroeconomic factors: The Data Center Market in Armenia is influenced by macroeconomic factors such as the country's economic stability, government policies promoting digitalization, and investments in technology infrastructure. With a growing focus on digital transformation and increasing demand for cloud services, Armenia has been making significant investments in its data center infrastructure to support the growth of the market. Additionally, the country's strategic location between Europe and Asia makes it an attractive destination for data center investments, driving further market growth.

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.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Although data centers may not make front page news, they serve a critical role as the infrastructure powering the most exciting developments in tech. While data centers were once known as small rooms housed on-site by business users, they have increasingly become extensive, centralized facilities managed by multinational operators. Many organizations rent data center capacity from a so-called colocation provider such as Equinix or Digital Realty, while others subscribe to cloud subscription services to take care of their storage and compute requirements. The global market was forecast to bring in 344 billion U.S. dollars in 2024, propelled by the adoption data intensive technologies.