Data Center

Revenue in the Data Center market is projected to reach US$99.88bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$63.46bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.00%, resulting in a market volume of US$133.70bn 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 European data center market is facing subdued growth due to factors such as increasing adoption of cloud services, rising energy costs, and the need for more efficient and sustainable infrastructure. This has led to slower growth in sub-markets such as servers, storage, and network infrastructure. However, with the growing demand for data storage and processing, the market is expected to see gradual growth in the coming years.

Customer preferences: The demand for data storage and processing continues to grow in Europe, driven by the increasing use of cloud computing, big data analytics, and internet of things (IoT) applications. This trend is fueled by the region's strong digital infrastructure and tech-savvy population. Additionally, there is a growing awareness of the importance of data security and privacy, leading to a surge in demand for secure and compliant data center solutions. As a result, data center providers are investing in advanced technologies and practices to meet these evolving consumer preferences.

Trends in the market: In Europe, the Data Center Market is experiencing a surge in demand for cloud services due to the increasing adoption of digital transformation strategies by businesses. Another trend is the implementation of green data centers, driven by the need for sustainable operations and cost savings. These trends have significant implications for industry stakeholders as they navigate the evolving market landscape and invest in innovative solutions to meet the changing demands of customers. Additionally, with the rise of remote work and the need for reliable connectivity, the data center market is expected to continue its growth trajectory in the coming years.

Local special circumstances: In Europe, the Data Center Market is heavily influenced by the region's strict data privacy laws, such as the General Data Protection Regulation (GDPR). This has led to the development of advanced data security measures and a shift towards sustainable and eco-friendly data center solutions. Additionally, the high demand for cloud computing services in Europe has fueled the growth of the Data Center Market, particularly in countries like Germany, France, and the UK. The growing trend of digitalization and the increasing use of connected devices in industries such as healthcare and finance are also driving the demand for data centers in Europe.

Underlying macroeconomic factors: The Data Center Market in Europe is heavily impacted by macroeconomic factors, such as the overall economic health of the region, government policies, and global economic trends. For instance, the increasing adoption of cloud computing and digitization has led to a surge in demand for data centers in Europe. Additionally, the growing trend of remote working and e-commerce has further driven the need for data centers in the region. Moreover, government initiatives to promote digitalization and investment in infrastructure have also contributed to the growth of the data center market in Europe. However, the uncertain economic climate and potential regulatory challenges may pose a threat to the market's growth in the region.

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.