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 is experiencing subdued growth due to factors such as limited demand from local businesses, high costs of infrastructure, and competition from neighboring countries. Despite this, the market is still expected to grow due to increasing investments in technology and the country's favorable climate for data center operations.

Customer preferences: The growing demand for cloud services and remote work options has led to a rise in the adoption of data center colocation and managed hosting solutions. This trend is driven by the need for reliable and secure infrastructure to support remote work and digital collaboration. Additionally, with the increasing focus on data privacy and security, more companies are choosing to outsource their data storage and management to specialized data centers in Iceland.

Trends in the market: In Iceland, the Data Center Market is experiencing a surge in green data center solutions, as companies prioritize sustainability and energy efficiency. With the country's abundant renewable energy sources, such as geothermal and hydroelectric power, data centers are able to significantly reduce their carbon footprint. This trend is expected to continue, with the government aiming to make Iceland a global hub for sustainable data centers. This shift towards green solutions is not only environmentally beneficial, but also presents opportunities for industry stakeholders to differentiate themselves and attract environmentally conscious customers. Additionally, it highlights Iceland's potential to become a leading player in the global data center market.

Local special circumstances: In Iceland, the Data Center Market is thriving due to the country's abundant supply of renewable energy and its cool climate, ideal for efficient data center operations. Additionally, Iceland has a strong focus on data privacy and security, with strict regulations in place to protect personal information. This has attracted global companies looking for a secure and environmentally sustainable location for their data centers. The country's small population also allows for a stable and reliable internet infrastructure, making it an attractive location for data center investment.

Underlying macroeconomic factors: The Data Center Market in Iceland is heavily influenced by macroeconomic factors such as the country's economic stability, government policies, and investments in the tech sector. Iceland's stable economy, favorable business environment, and government incentives for technology companies have attracted major players in the data center market to establish their presence in the country. Additionally, Iceland's abundant renewable energy resources and cool climate make it an ideal location for energy-efficient data center operations, further boosting the market growth.

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.