Data Center

Revenue in the Data Center market is projected to reach US$46.48m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$29.75m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.39%, resulting in a market volume of US$60.42m 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 Cyprus has been experiencing steady but minimal growth, influenced by factors such as the increasing demand for digital services, advancements in server, storage and network infrastructure technologies, and the growing awareness of the importance of data security and privacy. However, regulatory challenges and limited investments in the market are impacting its growth rate.

Customer preferences: There has been a significant increase in demand for cloud-based services and virtualization solutions in the Data Center Market market in Cyprus. This can be attributed to the growing need for remote work and collaboration tools, driven by the shift towards a more digital and connected workforce. Additionally, the rise of e-commerce and online shopping has led to a surge in demand for reliable and secure data storage and management solutions. These trends highlight the increasing importance of digital infrastructure and the need for businesses to adapt to a more digitally-driven market.

Trends in the market: In Cyprus, the Data Center Market is experiencing a surge in demand due to the increasing adoption of cloud computing and the rise of data-driven technologies such as IoT and AI. This trend is expected to continue in the coming years, with more businesses and organizations shifting towards digital transformation. As a result, there is a growing need for reliable and secure data storage and management solutions. This presents significant opportunities for data center providers and technology companies to expand their services and invest in the development of advanced infrastructure and services. Additionally, the rise of remote work and online education due to the COVID-19 pandemic has further emphasized the importance of data centers in supporting a digital economy. This trend is likely to have a lasting impact on the data center market in Cyprus, as businesses and individuals continue to rely on digital tools and services for their daily operations.

Local special circumstances: In Cyprus, the Data Center Market is influenced by the country's strategic location between Europe, Asia, and Africa. This makes it an ideal hub for international data center operations and connectivity. Additionally, the country's favorable tax incentives and business-friendly environment attract foreign investments and companies, driving the growth of the data center market. The cultural influences of the country, with a strong emphasis on technology and innovation, also contribute to the development of the data center market in Cyprus.

Underlying macroeconomic factors: The Data Center Market in Cyprus is influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with strong government support and investments in digital infrastructure are experiencing faster market growth compared to regions with limited government support and funding. Additionally, the growing importance of data storage and security in various industries, as well as the increasing adoption of cloud computing, are driving the demand for data centers in Cyprus. Moreover, the country's strategic location and favorable business environment make it an attractive destination for data center investments. These factors are expected to contribute to the overall growth of the Data Center Market in Cyprus.

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.