Data Center - G7

Revenue in the Data Center market is projected to reach US$206.50bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$103.90bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.54%, resulting in a market volume of US$325.70bn 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

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Region comparison

Currency

Analyst Opinion

The Data Center market in G7 is experiencing minimal growth due to various factors such as saturation in the Servers, Storage, and Network Infrastructure sub-markets, as well as increased competition and technological advancements. The market's slow growth rate is also influenced by the current economic climate and shifting consumer demands.

Customer preferences: The growing demand for cloud-based services in the Data Center Market market reflects a shift towards flexible and scalable solutions. This trend is driven by the need for remote work and virtual collaboration, as well as the rise of digital technologies in various industries. Additionally, customers are prioritizing data security and privacy, leading to an increased demand for secure and compliant data center solutions.

Trends in the market: In the global Data Center Market market, there is a growing trend towards green and sustainable data centers. Companies are increasingly investing in renewable energy sources and implementing energy-efficient technologies to reduce their carbon footprint. This trend is significant as it not only helps mitigate the environmental impact of data centers, but also lowers operational costs and improves overall efficiency. For industry stakeholders, this trend presents opportunities for innovation and differentiation in a highly competitive market, as well as potential cost savings and improved brand reputation. However, it also poses challenges in terms of initial investment and balancing sustainability with performance.

Local special circumstances: In the Data Center Market, the demand for secure and efficient data storage and management is driving market growth. In Japan, strict data protection laws and a culture of privacy have resulted in the development of advanced security measures in data centers. In China, the market is heavily influenced by government regulations and censorship, with data centers required to comply with strict data localization laws. In the United States, the market is driven by the need for data analytics and cloud computing, with many large tech companies investing in data centers to support their operations.

Underlying macroeconomic factors: The data center market in G7 countries is heavily influenced by macroeconomic factors such as technological advancements, government regulations, and investments in digital infrastructure. Countries with advanced technology and supportive regulatory environments are experiencing a higher demand for data center services, leading to market growth. Moreover, the increasing adoption of cloud computing, big data analytics, and the rise of IoT devices are also driving the demand for data centers in these countries. Additionally, the economic stability and favorable fiscal policies in G7 nations are creating a conducive environment for investments in the data center market.

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.