Data Center - Iceland

Iceland

Revenue in the Data Center market is projected to reach US$80.41m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$45.66m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.27%, resulting in a market volume of US$114.20m 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 Data Center market in Iceland has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Iceland are increasingly seeking data center solutions that prioritize sustainability and energy efficiency. With Iceland's abundant renewable energy sources, such as geothermal and hydropower, customers are drawn to data centers that can offer environmentally friendly operations. Additionally, the demand for high-quality and secure data storage solutions is driving customers towards data centers that can guarantee reliable services.

Trends in the market: One of the key trends in the Icelandic Data Center market is the growing interest from international companies looking to establish a presence in the country. Iceland's strategic location between Europe and North America, coupled with its cool climate that aids in data center cooling systems, makes it an attractive destination for companies seeking to expand their operations. This trend is further fueled by Iceland's political stability and advanced telecommunications infrastructure.

Local special circumstances: Iceland's unique geographical location and natural resources play a significant role in shaping the Data Center market. The country's cool climate allows for natural cooling solutions, reducing the need for extensive artificial cooling systems and lowering energy consumption. Moreover, Iceland's geothermal and hydropower capabilities provide data centers with access to sustainable and cost-effective energy sources, aligning with the increasing global focus on environmental responsibility.

Underlying macroeconomic factors: The Icelandic Data Center market is also influenced by macroeconomic factors such as government policies and incentives. Iceland offers various incentives, including tax breaks and support for renewable energy initiatives, to attract foreign investment in the data center industry. These policies contribute to the overall growth of the market and encourage innovation and sustainability within the sector. Additionally, Iceland's stable economy and business-friendly environment create a favorable landscape for data center development and expansion.

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.