Data Center

Revenue in the Data Center market is projected to reach US$6.74bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$3.69bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.45%, resulting in a market volume of US$8.79bn 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 Australia & Oceania is experiencing minimal growth, impacted by factors such as slow adoption of digital technologies, limited health awareness among consumers, and lack of convenience in online health services. This is reflected in the sub-markets of Servers, Storage, and Network Infrastructure, which are all facing similar challenges in the region. However, with increasing efforts to promote digitalization and improve access to healthcare services, the market is expected to see a gradual growth in the coming years.

Customer preferences: As the digital landscape continues to grow rapidly in Australia & Oceania, there has been a notable shift towards cloud-based solutions in the Data Center Market. This is driven by the need for flexible and scalable storage options, as well as increased demand for remote work and digital collaboration tools. Additionally, with the rise of e-commerce and online shopping, there is a growing preference for fast and reliable delivery services, leading to an increased demand for data centers to support these operations.

Trends in the market: In Australia & Oceania, the Data Center Market is experiencing a surge in cloud adoption, with businesses turning to cloud-based solutions for their data storage and processing needs. This trend is driven by the increasing demand for data-driven insights and the need for scalable and cost-effective solutions. Additionally, there is a growing focus on sustainability, with data center operators investing in renewable energy sources and implementing energy-efficient technologies. This trend not only benefits the environment but also helps reduce operational costs for businesses. As the market continues to evolve, we can expect to see further advancements in cloud technology and a stronger emphasis on sustainability in the data center industry.

Local special circumstances: In Australia & Oceania, the Data Center Market is experiencing rapid growth due to the region's stable political environment and high internet penetration rates. However, the market is also influenced by the unique geographical challenges, such as natural disasters and remote locations, which require specialized data center infrastructure. Additionally, cultural factors, such as the importance of sustainable and eco-friendly practices, drive demand for green data centers. Moreover, strict data privacy regulations, particularly in Australia, have a significant impact on the market, driving the adoption of advanced security measures.

Underlying macroeconomic factors: The Data Center Market in Australia & Oceania is also influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with favorable regulatory environments and strong investment in data center technologies are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Additionally, the increasing demand for cloud computing and big data analytics is driving the growth of the data center market in the region. Furthermore, the rapid growth of online services and e-commerce is also contributing to the demand for data center services.

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.