Data Center

Revenue in the Data Center market is projected to reach US$187.30m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$120.40m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.69%, resulting in a market volume of US$235.50m 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.

For more information on the data displayed, use the info button right next to the boxes.

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 Costa Rica is experiencing minimal growth due to factors such as limited adoption of digital technologies, low health awareness, and lack of convenience in online services. This is reflected in the sub-markets of Servers, Storage, and Network Infrastructure. However, with a growing economy and increasing investment in technology, the market has potential for future growth.

Customer preferences: The demand for data center services in Costa Rica has seen a significant increase due to the rising adoption of cloud computing and digitalization of businesses. This trend is driven by the need for reliable and secure data storage and management solutions. Additionally, with the growing popularity of remote work and e-commerce, there is a greater reliance on data centers for efficient and seamless connectivity. This shift towards digitalization is also a reflection of the country's tech-savvy population and their increasing preference for digital solutions.

Trends in the market: In Costa Rica, the Data Center Market is experiencing a growing trend of implementing renewable energy sources, such as solar and wind power, to power data centers. This is significant as it aligns with the country's goal of becoming carbon neutral by 2021. Additionally, there is a rising demand for edge computing services, driven by the increasing adoption of IoT devices and the need for low-latency data processing. This trend has implications for industry stakeholders, as it presents opportunities for green energy suppliers and edge computing providers to enter the market and cater to the evolving needs of data center users.

Local special circumstances: In Costa Rica, the Data Center Market is experiencing significant growth due to the country's strategic location between North and South America, making it a hub for international connectivity. Additionally, the government has implemented policies to attract foreign investment and promote the development of the digital economy. The country's stable political climate and highly skilled workforce also contribute to its success as a data center market. Furthermore, Costa Rica's commitment to sustainability and renewable energy sources aligns with the growing demand for environmentally conscious data center solutions.

Underlying macroeconomic factors: The Data Center Market in Costa Rica is heavily influenced by macroeconomic factors such as global economic trends, national economic health, fiscal policies, and other relevant financial indicators. The country's stable political environment, investment-friendly policies, and strategic location make it an attractive destination for data center development. Additionally, the government's efforts to promote digital transformation and investment in ICT infrastructure have created a conducive environment for the growth of the data center market. Furthermore, the increasing demand for cloud services, big data analytics, and the rise of e-commerce are driving the growth of the data center market in Costa Rica.

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.