Data Center

Revenue in the Data Center market is projected to reach US$1.37bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$1.05bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.06%, resulting in a market volume of US$1.67bn 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.

For more information on the data displayed, use the info button right next to the boxes.

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 Ireland is seeing minimal growth due to factors such as the slow adoption of digital technologies, limited health awareness among consumers, and the lack of convenience offered by online services. These factors may impact the sub-markets of servers, storage, and network infrastructure, as businesses may not see the need to invest in these areas. However, with the increasing demand for data storage and management, the market is expected to see gradual growth in the coming years.

Customer preferences: As Ireland continues to establish itself as a leading data center market, consumer preferences are also evolving. There is a growing demand for eco-friendly and sustainable data centers, driven by the country's commitment to reducing carbon emissions. Additionally, as remote work becomes more prevalent, there is a rising need for reliable and efficient connectivity, leading to a surge in demand for high-speed internet and advanced networking solutions. This trend is being further accelerated by the increasing adoption of cloud computing and edge computing technologies.

Trends in the market: In Ireland, the Data Center Market is experiencing a surge in demand for green data centers, with companies seeking to reduce their carbon footprint and comply with stricter environmental regulations. This trend is expected to continue as sustainability becomes a top priority for businesses. Additionally, there is a growing focus on edge computing, as more companies look to improve their network latency and enhance their digital capabilities. These trends have significant implications for industry stakeholders, as they will need to adapt and invest in sustainable and efficient data center solutions to remain competitive in the market.

Local special circumstances: In Ireland, the Data Center Market is thriving due to several factors, including the country's strategic location as a gateway between Europe and North America, its favorable tax policies for tech companies, and its well-educated and English-speaking workforce. Additionally, the Irish government has implemented policies to support the growth of the tech industry, such as the National Broadband Plan and the Data Centre Strategy. These unique local factors have contributed to Ireland's position as one of the top data center markets in Europe.

Underlying macroeconomic factors: The Data Center Market in Ireland is greatly influenced by macroeconomic factors such as government policies, investment in digital infrastructure, and global economic trends. Ireland's strong economy and favorable regulatory environment have attracted significant investments in the data center market, leading to its rapid growth. Additionally, the increasing demand for data storage and processing due to the rise of digitalization and cloud computing has further propelled the market. Furthermore, Ireland's strategic location and its membership in the European Union make it an ideal location for data centers, driving its market growth.

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.