Data Center - EU-27

EU-27

Revenue in the Data Center market is projected to reach US$69.57bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$44.53bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.93%, resulting in a market volume of US$92.81bn 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 EU-27 is experiencing significant growth and development driven by various factors.

Customer preferences: Customers in the EU-27 region are increasingly demanding more efficient and sustainable data center solutions. They are looking for data centers that offer high performance, scalability, and reliability while also being environmentally friendly. As a result, there is a growing trend towards data centers powered by renewable energy sources and equipped with energy-efficient infrastructure.

Trends in the market: One of the prominent trends in the Data Center market in the EU-27 is the rising adoption of edge computing. Edge data centers are becoming more popular as they enable faster processing of data and reduced latency, which is crucial for applications like Internet of Things (IoT) and artificial intelligence. This trend is driven by the increasing volume of data generated at the edge and the need for real-time data processing.

Local special circumstances: In countries like Germany and the Netherlands, there is a strong emphasis on data security and privacy regulations, leading to the development of highly secure data center facilities. These countries have stringent data protection laws, such as the General Data Protection Regulation (GDPR), which require data to be stored and processed within the EU. As a result, data center providers in these countries are focusing on enhancing security measures to meet regulatory requirements and customer expectations.

Underlying macroeconomic factors: The growth of the Data Center market in the EU-27 is also influenced by macroeconomic factors such as digital transformation initiatives, increasing internet penetration, and the proliferation of connected devices. As businesses and consumers rely more on digital services, the demand for data storage and processing capabilities continues to rise. Additionally, the COVID-19 pandemic has accelerated the shift towards remote working and online activities, further driving the need for robust data center infrastructure 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.