Data Center

Revenue in the Data Center market is projected to reach US$1.42bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$1.05bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.71%, resulting in a market volume of US$1.70bn 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 Czechia is seeing a minimal growth rate, impacted by factors such as increasing adoption of digital technologies, growing demand for efficient storage and network infrastructure, and the convenience offered by online services. This growth is driven by the increasing reliance on digital solutions and the need for advanced data management capabilities in various industries. Despite the slow growth, the market is expected to continue expanding due to the continuous development of digital infrastructure and the growing demand for cloud-based services.

Customer preferences: As technology continues to advance, the demand for data centers in Czechia is also increasing. This is due to the growing popularity of cloud computing and data storage solutions. Additionally, the rise of remote work and e-commerce has also led to a higher demand for reliable and efficient data centers. With the country's strong technological infrastructure and skilled workforce, Czechia is well-positioned to become a major player in the data center market in Europe.

Trends in the market: In Czechia, the Data Center Market is experiencing a surge in demand for cloud-based services, as businesses look to transition to remote work and digital transformation. This trend is expected to continue as more companies adopt hybrid cloud and multi-cloud strategies, driving the need for advanced data center infrastructure. Additionally, there is a growing focus on sustainability, with data centers implementing energy-efficient solutions and renewable energy sources. This trend not only benefits the environment but also reduces operating costs for data center operators. As the demand for data center services and sustainability increases, industry stakeholders must stay ahead of the curve to remain competitive and meet the evolving needs of their clients.

Local special circumstances: In Czechia, the Data Center Market is influenced by the country's strategic location in Central Europe, which provides easy access to major markets. Additionally, the country's strong IT infrastructure and skilled workforce make it a favorable location for data center investments. Furthermore, the government's favorable policies and tax incentives for data center operators have contributed to the market's growth. The country's strong commitment to renewable energy sources also makes it an attractive option for data center operators looking to reduce their carbon footprint.

Underlying macroeconomic factors: The Data Center Market in Czechia is heavily influenced by macroeconomic factors, such as the country's economic stability, government policies, and global economic trends. With a strong and stable economy, Czechia is experiencing a rising demand for data centers as businesses strive to keep up with the growing digital landscape. Additionally, the country's favorable regulatory environment and investment in digital infrastructure have further propelled the market's growth. Furthermore, the increasing adoption of cloud computing and the rise of big data analytics are also driving the demand for data centers in Czechia, as businesses seek to leverage these technologies for their operations. These factors, combined with the country's strategic location and skilled workforce, make Czechia a favorable market for data center investments.

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.