Data Center - EMEA

EMEA

Revenue in the Data Center market is projected to reach US$114.20bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$71.42bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.09%, resulting in a market volume of US$153.50bn 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 EMEA Data Center market is witnessing slow growth, influenced by factors like limited investments in Servers, Storage and Network Infrastructure. Other factors include low demand due to the economic slowdown and the shift towards cloud computing. The market's minimal growth rate is also impacted by the increasing adoption of digital technologies and the convenience offered by online services in the region.

Customer preferences: The demand for sustainable and energy-efficient data centers has significantly increased in the EMEA region, driven by growing concerns about climate change and rising energy costs. As a result, there is a growing trend towards green data center technologies, such as renewable energy sources and efficient cooling systems. This shift is also influenced by government regulations promoting sustainability and eco-friendly practices in the data center industry. Additionally, with the rise of remote work and digitalization, there is a growing need for reliable and secure data center infrastructure to support businesses and their operations.

Trends in the market: In EMEA, the Data Center Market is experiencing a trend towards increased adoption of cloud computing, with businesses migrating their operations to the cloud for cost savings and scalability. Additionally, there is a growing demand for edge computing solutions, driven by the rise of IoT and 5G technologies. These trends are significant as they highlight the shift towards a more data-driven economy in the region. As a result, industry stakeholders must stay ahead of these trends to remain competitive and meet the evolving needs of their customers. Failure to do so could lead to missed opportunities and potential loss of market share.

Local special circumstances: In the EMEA region, the Data Center Market is heavily influenced by the unique geographical and cultural factors of each country. For instance, in the Middle East, the market is driven by the high demand for cloud services due to the region's rapid digital transformation and the presence of large technology companies. In Europe, strict data privacy regulations, such as GDPR, have a significant impact on the market, leading to the adoption of advanced security measures in data centers. Additionally, the growing awareness and adoption of green initiatives have also influenced the market, with many countries in the region investing in sustainable data center solutions.

Underlying macroeconomic factors: The Data Center Market in EMEA is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with favorable regulatory environments and strong investments in data center technologies are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Additionally, the growing demand for cloud computing, big data analytics, and IoT applications are driving the need for advanced data center solutions in the region.

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.