Data Center - Germany

Germany

Revenue in the Data Center market is projected to reach US$18.70bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$11.20bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.22%, resulting in a market volume of US$25.29bn 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

Germany, known for its strong economy and technological advancements, has seen significant growth in its Data Center market in recent years.

Customer preferences: Customers in Germany are increasingly prioritizing reliability, security, and sustainability when it comes to choosing data center services. With the rise of cloud computing and big data analytics, businesses are looking for data centers that can ensure uninterrupted operations, protect sensitive information, and reduce their environmental impact.

Trends in the market: One of the key trends in the Data Center market in Germany is the growing demand for edge computing facilities. As businesses require low-latency data processing for applications like Internet of Things (IoT) and artificial intelligence, edge data centers located closer to end-users have become essential. This trend is driving investments in smaller, decentralized data centers across the country. Another notable trend is the increasing adoption of green technologies in data centers. Germany, known for its commitment to sustainability, is seeing a shift towards energy-efficient data center designs, renewable energy sources, and eco-friendly cooling systems. This trend is not only driven by environmental concerns but also by cost savings associated with energy-efficient operations.

Local special circumstances: Germany's strict data protection laws, such as the General Data Protection Regulation (GDPR), have a significant impact on the Data Center market. Data centers in Germany must comply with stringent regulations regarding data security and privacy, which has led to the development of state-of-the-art facilities with advanced security measures. This focus on data protection has positioned Germany as a reliable location for storing sensitive data, attracting businesses looking to ensure compliance with regulatory requirements.

Underlying macroeconomic factors: The strong economy and digital transformation drive in Germany are fueling the growth of the Data Center market. As businesses digitize their operations and expand their online presence, the demand for data storage and processing capabilities continues to rise. Additionally, Germany's central location in Europe makes it a strategic hub for data center investments, serving as a gateway to the wider European market. This geographical advantage, combined with the country's stable political environment and skilled workforce, further supports the development of the Data Center market in Germany.

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.