Data Center

Revenue in the Data Center market is projected to reach US$125.50bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$83.50bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.47%, resulting in a market volume of US$188.50bn 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 Eastern Asia is experiencing a steady growth rate due to increasing demand for digital technologies, rising awareness about data management, and the convenience of online services. Factors such as advancements in server, storage, and network infrastructure are driving this growth.

Customer preferences: As the Eastern Asia region continues to experience rapid economic growth and technological advancements, the Data Center Market is also evolving to meet changing consumer preferences. One notable trend is the increasing demand for cloud-based services and solutions, driven by the need for remote access and data management. This shift towards cloud-based solutions is also influenced by the cultural emphasis on efficiency and convenience, as well as the growing number of tech-savvy consumers in the region. Additionally, the rise of e-commerce and online services has further fueled the demand for data centers in Eastern Asia, as businesses seek to expand their online presence and cater to the growing number of digital consumers.

Trends in the market: In Eastern Asia, the Data Center Market is experiencing a surge in demand for cloud computing services, driven by the rapid adoption of digital transformation initiatives by businesses. This trend is expected to continue, with a focus on data analytics and artificial intelligence. The significance of this trend lies in its ability to improve business efficiency and competitiveness. However, it also poses challenges for traditional data center providers, who may need to adapt their services to meet the evolving needs of their clients. This trend is likely to lead to increased competition and consolidation within the industry, as well as the emergence of new players offering innovative solutions.

Local special circumstances: In Eastern Asia, the Data Center Market is heavily influenced by the region's rapid economic growth and increasing digitalization. China, Japan, and South Korea dominate the market, driven by their large populations and advanced technology infrastructures. In China, government policies and regulations play a significant role in shaping the market, while Japan's culture of efficiency and innovation drives the adoption of data center solutions. South Korea's strong focus on technology and high-speed connectivity also contributes to the growth of the market. Additionally, the unique geographical and climatic conditions in this region, such as typhoons and earthquakes, have led to the development of specialized data center designs and disaster recovery solutions.

Underlying macroeconomic factors: The Data Center Market in Eastern Asia is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with strong government support and significant investment in digital technologies are experiencing rapid growth in the market. On the other hand, regions with limited government support and weaker technological infrastructure are facing challenges in the market. Furthermore, the increasing demand for data storage and processing capabilities due to the growing digitalization of businesses and industries is also a major driver of market growth in this 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.