Data Center

Revenue in the Data Center market is projected to reach US$656.70m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$434.10m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.65%, resulting in a market volume of US$1.04bn 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 Hungary has been steadily growing, driven by factors such as increasing demand for digital services, growing awareness of data security, and the convenience of online solutions. The minimal growth rate is impacted by factors such as the slow adoption of advanced technologies and the limited availability of skilled professionals in the sub-markets of Servers, Storage, and Network Infrastructure.

Customer preferences: As technology continues to evolve, consumers in Hungary are showing a growing preference for cloud-based services and solutions. This trend is driven by the need for remote access and management of data, as well as the desire for more efficient and secure storage options. Additionally, the increasing adoption of IoT and smart devices is fueling the demand for data centers to support the growing amount of data being generated. This shift towards digitalization is also influenced by the country's tech-savvy population and its growing digital economy.

Trends in the market: In Hungary, the Data Center Market is experiencing a surge in demand for cloud-based services, with companies relying on remote work and digital solutions due to the pandemic. This trend is expected to continue as businesses prioritize cost-efficiency and flexibility. Additionally, there is a growing focus on sustainability, with data centers implementing green initiatives and using renewable energy sources. This shift towards eco-friendly practices not only benefits the environment but also appeals to customers and enhances a company's reputation. Furthermore, the adoption of 5G technology is expected to drive the growth of the data center market, as it enables faster data transfer and supports the increasing number of connected devices. These trends highlight the importance of staying agile and innovative in the data center market, as well as the potential for continued growth and investment in the industry.

Local special circumstances: In Hungary, the Data Center Market is experiencing rapid growth due to the country's strategic location in the heart of Europe and its favorable business environment. The government has also implemented policies to attract foreign investments in the IT sector, driving the demand for data centers. Additionally, the country's high-speed and reliable internet infrastructure has made it an ideal location for data center operations. This, coupled with the country's skilled workforce and affordable operating costs, has made Hungary a popular destination for data center providers.

Underlying macroeconomic factors: The growth of the Data Center Market is heavily impacted by macroeconomic factors such as technological advancements, government policies, and infrastructure investments. Countries with strong technological capabilities and supportive policies are experiencing significant growth in the data center market, while those with limited technological capabilities and regulatory challenges are facing slower growth. Additionally, the increasing reliance on digitalization and data-driven decision making in various industries is driving the demand for data center services, especially in the e-commerce, healthcare, and finance sectors.

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.