Data Center

Revenue in the Data Center market is projected to reach US$2.30bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$1.44bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.29%, resulting in a market volume of US$3.43bn 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 Belgian Data Center market is experiencing subdued growth due to factors such as increasing adoption of cloud technologies, rising demand for data storage, and the convenience of online services. Despite sub-markets for servers, storage, and network infrastructure, overall growth is impacted by factors such as limited space and high costs of infrastructure development.

Customer preferences: Consumers in Belgium are becoming more conscious of their environmental impact, leading to a growing demand for sustainable data centers. As the country aims to reduce its carbon footprint, companies are investing in green data centers powered by renewable energy sources. Additionally, with the rise of remote work, there is a growing need for reliable and secure data storage solutions, driving the demand for data center services. This trend is expected to continue as the country embraces digital transformation and prioritizes sustainability.

Trends in the market: In Belgium, the Data Center Market is experiencing a shift towards sustainable practices, with companies investing in renewable energy sources and implementing energy-efficient infrastructure. This trend is driven by increasing awareness of environmental impact and government regulations promoting green initiatives. It is expected to continue as companies prioritize sustainability and consumers demand eco-friendly solutions. This presents opportunities for industry players to differentiate themselves and meet the evolving needs of the market. Additionally, the rise of edge computing and the Internet of Things (IoT) is driving demand for smaller, localized data centers, creating a more distributed network. This trend may lead to increased competition and consolidation in the market as companies strive to meet the demand for efficient and reliable data storage and processing.

Local special circumstances: In Belgium, the Data Center Market is driven by the country's favorable geographical location, providing easy access to other European markets. Additionally, the country's strict data protection laws and high internet penetration rate have made it a preferred location for data storage and processing. The government's support for renewable energy and sustainable practices has also led to the emergence of green data centers in the country. This unique combination of factors has resulted in a highly competitive and innovative data center market in Belgium.

Underlying macroeconomic factors: The Data Center Market in Belgium is heavily influenced by macroeconomic factors such as government investments in digital infrastructure, favorable regulatory policies, and global economic trends. With a strong economy and supportive policies, Belgium is experiencing significant growth in its data center market, attracting investments from major players in the industry. Additionally, the increasing adoption of cloud computing and the rise of data-driven technologies are driving the demand for data center services in the country. These factors, along with the country's strategic location and reliable energy infrastructure, make Belgium an attractive destination for data center investments.

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.