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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Analyst Opinion

The Data Center Market in EU-27 is experiencing moderate growth, influenced by factors such as increasing demand for cloud services, rising adoption of IoT devices, and the need for reliable data storage and management. However, subdued growth is impacted by challenges such as high energy consumption and strict regulations for data privacy and security.

Customer preferences: As the demand for more efficient and sustainable data storage solutions continues to rise, consumers in the EU-27 are gravitating towards cloud-based services and virtualization technologies. This trend is driven by the growing focus on reducing carbon emissions and promoting green initiatives. Additionally, the increasing popularity of remote work and online education has led to a surge in demand for data center services that can support these activities seamlessly.

Trends in the market: In the EU-27, the Data Center Market is seeing a surge in demand for cloud storage solutions, as businesses increasingly rely on remote work and online services. This trend is expected to continue, with a projected annual growth rate of 12% in the next 5 years. This has significant implications for data center providers, who will need to expand their capacity to meet the growing demand. Additionally, the increasing adoption of artificial intelligence and Internet of Things technologies is driving the need for more sophisticated and energy-efficient data centers, presenting opportunities for innovation and investment in the industry.

Local special circumstances: In the EU-27 Data Center Market, the local factors that differentiate it from other markets play a significant role in shaping its dynamics. The region's strict data protection laws and regulations, such as the General Data Protection Regulation (GDPR), have a significant impact on the data center market. This has led to the adoption of advanced security measures and data privacy protocols, making the EU-27 market a preferred location for global companies. Moreover, the region's geographical location and well-developed infrastructure also contribute to its attractiveness as a data center hub.

Underlying macroeconomic factors: The Data Center Market in EU-27 is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with strong investments in digital infrastructure and favorable regulatory environments are experiencing rapid growth in the data center market. Additionally, the increasing demand for data storage and processing capabilities, driven by the growth of digitalization and cloud computing, is also contributing to the market's growth. Furthermore, the ongoing digital transformation of businesses and the need for high-speed data processing and storage solutions are propelling the demand for data center services 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.