Data Center

Revenue in the Data Center market is projected to reach US$8.08bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$4.18bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.58%, resulting in a market volume of US$10.59bn 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 Canada is experiencing minimal growth, influenced by factors such as the increasing demand for digital technologies, growing awareness of the importance of data storage, and the convenience of online services. Factors such as the high cost of infrastructure and limited availability of skilled professionals may be impacting the market's growth rate.

Customer preferences: As more businesses and organizations shift towards remote work and online operations, there has been a growing demand for cloud-based services and data storage solutions. This has resulted in an increasing demand for data centers in Canada, as companies seek secure and reliable options for storing and managing their data. Additionally, with the rise of e-commerce and online shopping, consumer expectations for fast and efficient digital experiences have also contributed to the growth of the data center market in Canada.

Trends in the market: In Canada, the Data Center Market is experiencing a surge in demand for cloud computing services, as companies increasingly rely on remote work and digital operations. This trend is expected to continue, with experts predicting a steady growth in the adoption of hybrid cloud solutions. This has significant implications for industry stakeholders, as data center providers must invest in expanding their infrastructure and offering advanced services to remain competitive. Additionally, the rise of data privacy concerns has led to a growing demand for secure and compliant data center solutions, further driving the need for innovation in the industry.

Local special circumstances: In Canada, the Data Center Market continues to experience growth due to the country's stable political and economic climate, as well as its highly-skilled workforce. Additionally, the Canadian government has implemented strict data privacy laws, making it a desirable location for storing sensitive data. The country's cold climate also provides natural cooling for data centers, reducing energy costs. Furthermore, Canada's proximity to the United States makes it an ideal location for companies looking to expand their presence in both markets.

Underlying macroeconomic factors: The Data Center Market in Canada is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. With a strong and stable economy, Canada offers a favorable business environment for data center companies. Additionally, the country's commitment to renewable energy sources and its strategic location for international connectivity make it an attractive market for data center investments. Moreover, the growing adoption of cloud computing and data storage solutions in various industries is also driving the demand for data centers in Canada.

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.