Data Center

Revenue in the Data Center market is projected to reach US$2.07bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$1.37bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.96%, resulting in a market volume of US$2.64bn 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 Austrian Data Center market has been experiencing modest growth, influenced by factors such as increasing demand for digital infrastructure, growing awareness of data security, and the convenience of online services. This trend is evident across all sub-markets, with a focus on expanding network infrastructure to support the growing demand for data storage and processing.

Customer preferences: Consumers in Austria are increasingly prioritizing sustainability and environmental impact when it comes to their purchasing decisions. This trend is reflected in the data center market, with a growing demand for eco-friendly and energy-efficient solutions. Additionally, there is a rising preference for data centers that prioritize renewable energy sources and have a lower carbon footprint. This shift towards sustainability is driven by a growing awareness of climate change and a desire for responsible consumption.

Trends in the market: In Austria, the Data Center Market is experiencing a surge in demand for cloud-based services, as businesses shift towards remote work and digital transformation. This trend is projected to continue, with the market expected to grow at a CAGR of 8.7% from 2021 to 2026. This shift towards cloud computing has significant implications for industry stakeholders, as it offers cost savings, scalability, and improved data security. Additionally, the increasing use of Internet of Things (IoT) devices and big data analytics is driving the need for more data center capacity, further fueling the market growth. As a result, data center providers are investing in expanding their infrastructure and offering innovative services to meet the evolving needs of their clients.

Local special circumstances: In Austria, the Data Center Market is heavily influenced by the country's geographical location as a central hub for Europe's internet traffic. This has led to the development of cutting-edge data centers that cater to the needs of international clients. Additionally, the country's strong data privacy laws and government support for digital infrastructure have created a stable and secure environment for data storage and processing. With a high demand for energy-efficient solutions, Austria has also seen a rise in green data centers utilizing renewable energy sources.

Underlying macroeconomic factors: The Data Center Market in Austria is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with advanced technological infrastructure and supportive government policies are experiencing rapid growth in the Data Center Market. In addition, the increasing demand for data storage and processing due to the rise of digitalization and the growth of industries such as e-commerce and cloud computing is driving the demand for data centers in Austria. Furthermore, the country's stable economy and favorable business environment make it an attractive location for data center investments, leading to 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.