Data Center - Benelux

Benelux

Revenue in the Data Center market is projected to reach US$7.96bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$4.57bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.92%, resulting in a market volume of US$11.65bn by 2029.
In global comparison, most revenue will be generated in the United States (US$123.20bn in 2024).

Key regions: United States, Germany, India, Japan, China

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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Market

Region

Region comparison

Currency

Analyst Opinion

The Data Center market in Benelux is seeing steady growth, influenced by factors such as increasing demand for digital services, growing awareness of data security, and the convenience of online data management. However, the market's growth rate is subdued due to factors such as high costs of infrastructure and limited space availability. These challenges are impacting the overall growth rate, but the market is still expected to continue expanding in the coming years.

Customer preferences: In the Benelux region, there has been a growing demand for sustainable and energy-efficient data center solutions. This trend is driven by an increasing awareness of the environmental impact of data centers and the need for companies to meet sustainability goals. Additionally, there has been a shift towards edge computing, as consumers and businesses seek faster and more reliable connectivity for their digital activities. This has led to a rise in demand for smaller, localized data centers that can support the growing demand for data processing and storage.

Trends in the market: In the Benelux region, the Data Center Market is experiencing a surge in demand for cloud-based services, as companies shift towards remote work and online operations. This trend is expected to continue, with an estimated growth of 14% in the next five years. This shift towards cloud computing is significant, as it offers cost savings, scalability, and flexibility for businesses. However, it also presents challenges for data center providers to keep up with the demand and maintain high levels of security and reliability. As a result, we may see an increase in partnerships and collaborations within the industry to meet these growing demands.

Local special circumstances: In the Benelux region, the Data Center Market is heavily influenced by the region's strict data privacy laws and regulations, such as the General Data Protection Regulation (GDPR). This has led to a high demand for secure and compliant data center facilities. Additionally, the region's central location and strong connectivity make it an ideal location for international businesses looking for a strategic data center hub. The cultural emphasis on sustainability and renewable energy has also spurred the growth of green data centers in the region.

Underlying macroeconomic factors: The Data Center Market in the Benelux region is heavily influenced by macroeconomic factors such as government policies, technological advancements, and investment in IT infrastructure. The Benelux countries have strong digital infrastructure and a supportive regulatory environment, which has led to a high demand for data center services. Additionally, the region's central location and robust connectivity make it an ideal location for businesses seeking to establish a presence in Europe. The growing trend of digitization and increasing data consumption across various industries is also driving the demand for data center services in the region. Furthermore, the increasing focus on sustainability and energy efficiency is expected to further boost the growth of the data center market in Benelux.

Methodology

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.