Data Center - Croatia

Croatia

Revenue in the Data Center market is projected to reach US$212.70m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$134.00m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.43%, resulting in a market volume of US$264.20m by 2029.
In global comparison, most revenue will be generated in the United States (US$123.20bn 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 Croatia is experiencing minimal growth due to factors such as limited investment in digital infrastructure, slow adoption of digital technologies, and a lack of awareness among businesses about the benefits of data centers. This has resulted in a stagnant market with slow growth rates compared to other regions. However, with increasing demand for cloud services and the need for efficient data storage, the market is expected to pick up pace in the coming years.

Customer preferences: As Croatia continues to develop its digital infrastructure, there has been a growing demand for cloud-based services and solutions. This is driven by a shift towards remote work and virtual collaboration, as well as an increased reliance on online services and e-commerce. Additionally, there has been a rise in demand for data center services that prioritize sustainability and energy efficiency, reflecting the country's commitment to environmental responsibility.

Trends in the market: In Croatia, the Data Center Market is experiencing a surge in demand for cloud services as businesses shift towards remote working and digitalization. This trend is expected to continue as the country's digital infrastructure improves, creating opportunities for data center providers. Additionally, the rising adoption of Internet of Things (IoT) technologies is driving the need for data storage and processing, further fueling the growth of the market. This presents a significant opportunity for industry stakeholders to invest in advanced data center infrastructure and services to cater to the evolving needs of businesses. However, with the increasing use of data and concerns around data privacy and security, data center providers will need to prioritize implementing robust security measures and compliance protocols to maintain customer trust and stay competitive in the market.

Local special circumstances: In Croatia, the Data Center Market is influenced by its strategic location between Western and Eastern Europe, making it an ideal hub for international connectivity. Additionally, the country's supportive government policies and incentives for foreign investments have attracted major players in the industry. The unique cultural blend of Western and Eastern European influences has also resulted in a diverse and skilled workforce, making it a desirable location for data center operations. Moreover, the country's strong commitment to renewable energy sources has led to the emergence of green data centers, catering to the growing demand for sustainable solutions in the market.

Underlying macroeconomic factors: The Data Center Market in Croatia is heavily influenced by macroeconomic factors such as economic growth, government policies, and investment in information technology infrastructure. With a stable economy and a growing focus on digital transformation, Croatia offers a favorable environment for the growth of the data center market. Furthermore, the country's strategic location and access to high-speed internet connectivity make it an attractive destination for data center investments. In addition, the increasing adoption of cloud computing and the rise of big data analytics are driving the demand for data center services in Croatia, further boosting the market's growth.

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.