Data Center

Revenue in the Data Center market is projected to reach US$585.90m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$324.20m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.55%, resulting in a market volume of US$767.70m 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 Bangladesh is experiencing subdued growth, influenced by various factors such as the slow adoption of digital technologies, limited health awareness among consumers, and challenges in the Servers, Storage, and Network Infrastructure sub-markets. These factors have hindered the market's growth rate, creating a challenging environment for growth.

Customer preferences: As technology continues to evolve, consumers in the Data Center Market are placing a higher value on data privacy and security. This has led to an increase in demand for secure data storage and management solutions. Additionally, the growing reliance on digital platforms for business and personal use has also created a need for reliable and efficient data backup and disaster recovery services. As a result, data center providers are focusing on implementing advanced security measures and offering comprehensive data protection services to meet the changing needs of consumers.

Trends in the market: In Bangladesh, the Data Center Market is experiencing a surge in demand for cloud-based services, as businesses and organizations look to migrate their data to more secure and efficient platforms. This trend is expected to continue as the country's digital economy grows, with more businesses adopting digital transformation strategies. This shift towards cloud-based solutions also presents opportunities for data center providers to offer more advanced services such as edge computing and hybrid cloud solutions. However, it also poses challenges in terms of infrastructure development and cybersecurity measures. As such, industry stakeholders must stay ahead of these trends to remain competitive and meet the evolving needs of their clients.

Local special circumstances: In Bangladesh, the Data Center Market is experiencing significant growth due to the country's rapid economic development and increasing demand for digital services. The government's focus on promoting the ICT industry and improving internet infrastructure has created a favorable environment for data center investments. Additionally, cultural norms and business practices, such as a preference for local data storage and strict data privacy regulations, have contributed to the unique dynamics of the market.

Underlying macroeconomic factors: The Data Center Market in Bangladesh is significantly impacted by macroeconomic factors such as government policies, technological advancements, and infrastructure development. As the country continues to experience economic growth and modernization, there is a growing demand for data center services to support the digital transformation of various industries. Additionally, the government's focus on promoting a digital economy and implementing favorable policies for foreign investments in the ICT sector is expected to further drive the growth of the data center market in Bangladesh. Furthermore, the increasing adoption of cloud computing and the rise in data generation from various sources are also contributing to the market's expansion.

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.