Data Center

Revenue in the Data Center market is projected to reach US$5.98bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$4.33bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.13%, resulting in a market volume of US$7.68bn 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 CIS has been experiencing slow growth, influenced by factors such as limited investment in infrastructure, low adoption of digital technologies, and a lack of awareness among consumers. This is reflected in the subdued growth rate, which is impacted by the underdeveloped sub-markets of Servers, Storage, and Network Infrastructure. However, with increasing digitalization and rising demand for data storage and processing, the market is expected to see gradual growth in the coming years.

Customer preferences: The Data Center Market is witnessing a growing demand for cloud-based solutions and virtualization technologies, as businesses seek to optimize their operations and reduce costs. This trend is fueled by the increasing adoption of remote work and the need for reliable and scalable IT infrastructure. Additionally, there is a rise in the use of AI and machine learning in data centers, as organizations look to leverage these technologies for data analysis and decision-making.

Trends in the market: In the CIS and Data Center Market, there is a growing trend towards cloud computing and virtualization, with more organizations moving towards these technologies to optimize their operations and reduce costs. This trend is expected to continue as the demand for data storage and processing increases. Additionally, there is a shift towards edge computing, with the rise of IoT devices and the need for real-time data processing. This trend has significant implications for industry stakeholders, as it requires them to adapt and invest in new technologies to stay competitive in the market. It also highlights the importance of data security and efficient data management in the ever-evolving data center landscape.

Local special circumstances: In the CIS and Data Center Market, the unique local factors play a significant role in shaping the market landscape. For instance, in Russia, the government's emphasis on developing a digital economy has led to a surge in demand for data centers. Additionally, the country's large landmass and harsh climate pose challenges for data center construction and maintenance. In Kazakhstan, the market is driven by the country's strategic location between Europe and Asia, making it an ideal hub for international data center operations. Moreover, the country's favorable business environment and government support for digitalization have attracted major data center investments.

Underlying macroeconomic factors: The Data Center Market in CIS is heavily influenced by macroeconomic factors such as government policies, technological advancements, and investment in IT infrastructure. Countries with favorable regulatory environments and strong investment in data center technologies are experiencing faster market growth compared to regions with regulatory challenges and limited IT funding. Additionally, the increasing demand for cloud services, big data analytics, and the adoption of IoT devices are driving the growth of the data center market in CIS. Furthermore, the growing digital economy and the need for efficient data storage and management are also contributing to the market's growth in the region.

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.