Data Center - Eastern Europe

Eastern Europe

Revenue in the Data Center market is projected to reach US$6.17bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$4.46bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.12%, resulting in a market volume of US$7.92bn 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 Eastern Europe is experiencing subdued growth due to factors such as slow adoption of digital technologies, limited awareness among consumers, and challenges in online service convenience. This is reflected in the sub-markets of Servers, Storage and Network Infrastructure. However, with increasing demand for data storage and processing, the market is expected to grow in the coming years.

Customer preferences: The data center market in Eastern Europe is experiencing a significant increase in demand as more businesses and individuals adopt digital solutions for their daily operations. This trend is driven by the growing preference for virtualization and cloud computing, as well as the need for remote work and collaboration tools. Additionally, the rise of e-commerce and online services has led to a surge in data storage and processing needs, further driving the growth of the data center market in the region.

Trends in the market: In Eastern Europe, the Data Center Market is experiencing a surge in demand for cloud-based services, with more businesses transitioning to remote work and virtual operations. This trend is expected to continue, driven by the increasing adoption of digital transformation strategies and the need for scalable and secure data storage solutions. As a result, there is a growing market for colocation and managed services, with major players investing in expanding their data center facilities in the region. This presents opportunities for industry stakeholders, but also highlights the need for efficient energy management and sustainable practices to meet the growing demand.

Local special circumstances: In Eastern Europe, the Data Center Market is rapidly growing due to the region's favorable geographical location and low energy costs. The market is also influenced by the unique cultural and regulatory factors of each country. For example, in Russia, government initiatives to promote digitalization and data localization have led to a surge in demand for data center services. In Poland, the market is driven by the country's strong IT infrastructure and favorable business environment. Additionally, the region's increasing adoption of cloud computing and digital transformation in various industries is fueling the growth of the Data Center Market.

Underlying macroeconomic factors: In Eastern Europe, the Data Center Market is heavily impacted by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with a strong focus on promoting digital transformation and investing in advanced data center technologies are experiencing rapid growth in the market. On the other hand, countries with regulatory challenges and limited funding for digital infrastructure are facing slower market growth. Moreover, the increasing demand for data center services from various industries, coupled with the rise in cloud adoption, is driving the growth of the Data Center Market in Eastern Europe.

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.