Data Center

Revenue in the Data Center market is projected to reach US$1.80bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$918.50m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.13%, resulting in a market volume of US$2.42bn 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 Finland has been experiencing minimal growth, influenced by factors such as the increasing adoption of cloud technologies, rising demand for data storage and network infrastructure, and the convenience offered by online services. However, challenges such as high energy costs and limited land availability hinder the market's growth rate.

Customer preferences: As the demand for data storage and processing continues to grow in Finland, consumers are increasingly looking for energy-efficient and sustainable solutions. This has led to a rise in demand for green data centers that utilize renewable energy sources and prioritize eco-friendly practices. Additionally, there is a growing trend towards edge computing, driven by the need for faster and more reliable data delivery. This shift is also influenced by the rise of IoT devices and the need for real-time data processing and analysis.

Trends in the market: In Finland, the Data Center Market is experiencing a surge in demand for green and sustainable data centers. This trend is driven by the country's commitment to reducing carbon emissions and the increasing awareness of the environmental impact of data centers. As a result, data center providers are investing in renewable energy sources and implementing energy-efficient technologies, such as free cooling and liquid cooling systems. This not only reduces the carbon footprint of data centers but also lowers operational costs for businesses. Furthermore, the government is providing incentives for companies to adopt green data center solutions, which is expected to further accelerate this trend. For industry stakeholders, this trend presents opportunities for partnerships and investments in sustainable data center infrastructure. It also highlights the importance of incorporating sustainability into business strategies to remain competitive in the market.

Local special circumstances: In Finland, the Data Center Market is thriving due to the country's advanced digital infrastructure and government support for technology innovation. Finland's cold climate and renewable energy sources make it an ideal location for energy-efficient data centers. Additionally, the country's strong focus on data protection and privacy laws has attracted major international companies to establish their data centers in Finland. These unique factors have contributed to the growth of the data center market in Finland, making it a leading player in the global data center industry.

Underlying macroeconomic factors: The Data Center Market in Finland is greatly affected by macroeconomic factors such as the country's overall economic health, global economic trends, and fiscal policies. With a stable economy and strong investment in technology and infrastructure, Finland boasts a favorable environment for the growth of the data center market. Additionally, the country's commitment to renewable energy sources, such as hydro and wind power, has made it an attractive location for data center operations, as sustainability and energy efficiency are key considerations for businesses. Furthermore, Finland's strategic location between Europe and Asia makes it a prime location for international data traffic, further boosting the demand for data center services.

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.