Data Center - France

France

Revenue in the Data Center market is projected to reach US$11.75bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$7.45bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.57%, resulting in a market volume of US$15.41bn 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 French Data Center market is facing subdued growth due to factors such as increasing competition, saturation in the market, and the shift towards cloud-based solutions. However, the market is expected to experience growth in the future, driven by the increasing demand for data storage, server virtualization, and network connectivity. The rising need for efficient data management and the growing reliance on digital technologies are also contributing to the market's growth. Furthermore, the government's initiatives to promote digital transformation and the increasing adoption of IoT devices are expected to further drive the market's growth.

Customer preferences: In France, the data center market is experiencing a rise in demand for cloud storage and virtualization solutions, driven by the country's growing economy and increasing adoption of digital technologies. This shift is also influenced by consumer preferences for more secure and flexible data storage options. Additionally, data center operators are investing in greener and more energy-efficient infrastructure to meet the country's strict environmental regulations and cater to the growing demand for sustainable solutions.

Trends in the market: In France, the Data Center Market is experiencing a surge in demand for hyperscale data centers, driven by the increasing adoption of cloud services. This trend is expected to continue as businesses and organizations increasingly rely on cloud-based solutions for storage and computing needs. Moreover, the rise of edge computing is also fueling the growth of smaller, localized data centers. This trajectory highlights the significance of efficient, cost-effective, and secure data center solutions. For stakeholders, these trends present opportunities for expansion and diversification, while also emphasizing the need for innovation and agility in a rapidly evolving market.

Local special circumstances: In France, the Data Center Market is seeing significant growth due to the country's advanced telecommunications infrastructure and its strategic location within Europe. French data centers are known for their reliability and energy efficiency, making them highly attractive to international businesses. Additionally, the French government has implemented strict data protection laws, making the country a secure and trustworthy location for data storage. This combination of factors has resulted in a thriving data center market in France that continues to expand.

Underlying macroeconomic factors: The Data Center Market in France is heavily influenced by macroeconomic factors such as the country's stable economic growth, favorable regulatory environment, and significant investment in digital infrastructure. France's strong focus on digital transformation and innovation, as well as its strategic location and connectivity to other European markets, further support the growth of the data center market. Additionally, the increasing demand for data storage and cloud services, driven by the digitalization of businesses and the rise in internet usage, is expected to contribute to the growth of the data center market in France.

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.