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 Data Center market in EMEA is witnessing minimal growth due to factors like saturation in the Servers, Storage and Network Infrastructure sub-markets. This sub-par growth can be attributed to factors such as economic slowdown, data privacy concerns, and increased competition. Despite these challenges, the market is expected to continue growing, driven by the increasing demand for cloud computing and virtualization technologies.

Customer preferences: One notable trend in the EMEA data center market is the growing demand for edge computing solutions. This is driven by the increasing adoption of internet of things (IoT) devices and the need for low-latency and high-bandwidth connections. As businesses shift towards digitalization, there is also a growing need for hybrid and multi-cloud environments, leading to the popularity of edge data centers. Furthermore, the rise in remote work and virtual events due to the COVID-19 pandemic has further accelerated the demand for edge computing in order to support the growing volume of data being generated and processed.

Trends in the market: In EMEA, the Data Center Market is experiencing a trend towards increased adoption of cloud services, as businesses seek to reduce costs and increase scalability. This trend is expected to continue as more organizations shift their operations to the cloud, resulting in increased demand for data center services. Additionally, there is a growing focus on sustainability and energy efficiency in the region, driving the adoption of green data centers. This shift towards sustainable practices is expected to shape the future of the data center market in EMEA, with potential implications for stakeholders such as data center providers and businesses relying on data center services.

Local special circumstances: In EMEA, the Data Center Market is heavily influenced by the cultural diversity and varying regulatory environments of each country. For example, in Germany, strict data privacy laws have led to the adoption of highly secure data center facilities. In contrast, countries in the Middle East, such as UAE, have a booming market due to their strategic location and growing demand for cloud services in the region. Furthermore, in Africa, the lack of reliable power infrastructure has resulted in the emergence of innovative green data center solutions.

Underlying macroeconomic factors: The Data Center Market in EMEA is heavily impacted by macroeconomic factors such as economic stability, technological advancements, and government policies. With the increasing demand for data storage and processing capabilities, the market is expected to witness significant growth in the coming years. Moreover, the focus on modernizing and digitizing industries in the region is also contributing to the growth of the Data Center Market. Additionally, the rise of cloud computing and big data analytics is driving the need for more efficient and 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.