Data Center - Central & Western Europe

Central & Western Europe

Revenue in the Data Center market is projected to reach US$56.89bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$34.89bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.71%, resulting in a market volume of US$73.77bn by 2028.
In global comparison, most revenue will be generated in the United States (US$99.16bn 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 Central & Western Europe is experiencing significant growth and development. Customer preferences in the region are driving the expansion of the Data Center market. Companies are increasingly relying on cloud computing and digital services, which require robust and secure data storage and processing capabilities. This has created a strong demand for Data Centers in Central & Western Europe. One of the key trends in the market is the increasing adoption of edge computing. Edge computing brings data processing closer to the source of data generation, reducing latency and improving the overall performance of digital services. With the proliferation of Internet of Things (IoT) devices and the need for real-time data analysis, edge computing has become crucial for many businesses. As a result, Data Centers in Central & Western Europe are strategically located closer to urban areas and industrial hubs to support edge computing requirements. Another trend in the market is the growing emphasis on sustainability and energy efficiency. Data Centers consume a significant amount of energy, and there is a growing awareness of the environmental impact of these facilities. As a result, Data Center operators in Central & Western Europe are investing in renewable energy sources and implementing energy-efficient technologies to reduce their carbon footprint. This trend is driven by both customer demand for sustainable solutions and regulatory requirements for energy efficiency. In addition to customer preferences, there are also local special circumstances that contribute to the development of the Data Center market in Central & Western Europe. The region has a strong digital infrastructure and a favorable business environment, making it an attractive location for Data Center investments. Central & Western Europe also has a large pool of skilled IT professionals, which is essential for the operation and maintenance of Data Centers. Underlying macroeconomic factors also play a role in the growth of the Data Center market in Central & Western Europe. The region has a strong and stable economy, which provides a favorable business environment for Data Center operators. Additionally, the increasing digitalization of industries and the growing demand for cloud services are driving the need for Data Centers. Overall, the Data Center market in Central & Western Europe is experiencing significant growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. As businesses continue to rely on digital services and the demand for edge computing and sustainability increases, the Data Center market in Central & Western Europe is expected to continue its upward trajectory.

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.