Data Center

Revenue in the Data Center market is projected to reach US$84.15m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$55.97m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.00%, resulting in a market volume of US$112.60m 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 Estonia has seen moderate growth, influenced by factors such as increasing demand for digital services, rising awareness of data security, and advancements in technology. The sub-markets of Servers, Storage and Network Infrastructure play a significant role in shaping the overall market. However, the subdued growth rate can be attributed to factors like economic uncertainty and competition from neighboring countries.

Customer preferences: The data center market in Estonia has seen a rise in demand for cloud-based solutions, as businesses seek cost-effective and scalable options for data storage and management. With a growing emphasis on remote work and virtual collaboration, there is a shift towards cloud-based services, leading to an increase in demand for data centers with high-speed connectivity and advanced security features. Additionally, the rise in e-commerce and online transactions has also fueled the need for secure and reliable data centers to support digital payment processing and data protection.

Trends in the market: In Estonia, the Data Center Market is experiencing a surge in demand for cloud services, with businesses and government agencies seeking secure and scalable solutions for their data storage needs. This trend is expected to continue, driven by the growing adoption of digital transformation initiatives and the shift towards remote work. As a result, there is a rise in investments in new data center facilities and upgrades of existing infrastructure. This trajectory is significant for industry stakeholders as it presents opportunities for growth and innovation. However, it also poses challenges in terms of ensuring data security and compliance with regulations. Therefore, there is a need for continuous advancements in data center technology and infrastructure to meet the evolving demands of the market.

Local special circumstances: In Estonia, the Data Center Market is thriving due to its strategic location between Europe and Russia, making it a prime location for international companies. Additionally, the country has a strong focus on renewable energy, with over 80% of its electricity coming from renewable sources. This eco-friendly approach has attracted environmentally conscious businesses to set up data centers in Estonia. Furthermore, the country's digital infrastructure and advanced technological capabilities have created a favorable environment for the growth of the data center market.

Underlying macroeconomic factors: The Data Center Market in Estonia is greatly impacted by macroeconomic factors such as the country's strong digital infrastructure, favorable regulatory environment, and government support for technology investment. Additionally, the global trend towards cloud computing and data storage has also contributed to the growth of the market in Estonia. With a stable and growing economy, the country is well positioned to attract foreign investment and drive further growth in the data center market. Furthermore, the increasing adoption of digital technologies across industries and the rising demand for data storage and processing capabilities are expected to continue driving the growth of the data center market in Estonia.

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.