Data Center

Revenue in the Data Center market is projected to reach US$755.00m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$382.50m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.49%, resulting in a market volume of US$1.08bn 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 Central Asia is experiencing minimal growth due to factors such as slow adoption of digital technologies, low awareness of online health services, and limited investment in Servers, Storage, and Network Infrastructure. This has led to a stagnant growth rate in the overall market.

Customer preferences: As technology continues to advance, there is a growing demand for data centers in Central Asia. Consumers are increasingly relying on digital platforms for work, education, and entertainment, leading to a surge in demand for reliable and efficient data storage and management solutions. Additionally, with the rise of e-commerce and online services, there is a growing need for secure and accessible data centers to support the region's digital economy. This trend is likely to continue as more individuals and businesses embrace digital transformation and rely on data-driven solutions for their daily needs.

Trends in the market: In Central Asia, the Data Center market is experiencing a surge in demand for cloud computing services, with businesses increasingly turning to remote data storage and processing solutions. This trend is driven by the region's rapid economic growth and the need for reliable and scalable IT infrastructure. As a result, there is a growing focus on building and expanding data centers in the region, with major players such as Huawei and IBM investing heavily in this market. This trajectory not only presents opportunities for industry stakeholders, but also highlights the importance of robust data security and privacy measures. Additionally, this trend has the potential to boost the region's digital economy and drive further technological innovation.

Local special circumstances: In Central Asia, the Data Center Market is influenced by its unique geographical location. The region is situated at the crossroads of Europe and Asia, making it a strategic location for data center operations. Additionally, the cultural diversity in the region, with a mix of Turkic, Persian, and Russian influences, also plays a role in shaping the market. Moreover, the regulatory landscape in Central Asia is still developing, with some countries having strict data privacy laws, while others have more relaxed regulations. These factors create a dynamic market for data centers in Central Asia, with varying levels of demand and opportunities for growth.

Underlying macroeconomic factors: The growth of the Data Center Market is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with strong government support and favorable business environments are experiencing rapid growth in the data center market. Additionally, the increasing demand for data storage and processing due to the rise of digitalization and e-commerce is driving the market growth in Central Asia. The region's strategic location between Europe and Asia also presents opportunities for growth in the data center market, as it can serve as a hub for international data traffic.

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.