Data Center - Italy

Italy

Revenue in the Data Center market is projected to reach US$7.04bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$5.14bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.27%, resulting in a market volume of US$9.10bn 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.

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

Market

Region

Region comparison

Currency

Analyst Opinion

The data center market in Italy has been experiencing slow growth due to various factors such as limited investments in servers, storage, and network infrastructure. This is partly due to the preference for cloud-based solutions and the increasing focus on sustainability and energy efficiency. Additionally, the country's economic slowdown and political instability have also impacted the market's growth rate.

Customer preferences: With the rise of remote work and the increasing reliance on digital technologies, there has been a growing demand for reliable and secure data center services in Italy. This trend is driven by the need for businesses to have a strong online presence and the growing adoption of cloud computing. Additionally, the emergence of the Internet of Things (IoT) and the proliferation of connected devices are expected to further drive the demand for data center services in the country.

Trends in the market: In Italy, the Data Center Market is experiencing a rise in demand for cloud services and colocation solutions. This trend is driven by the increasing adoption of digital transformation strategies by businesses, as well as the growing need for data storage and processing capabilities. As a result, data center providers are expanding their offerings to include hybrid and multi-cloud solutions, while also investing in green energy initiatives to meet sustainability goals. This trend is significant for industry stakeholders as it presents opportunities for growth and innovation, but also poses challenges in terms of infrastructure investments and data security. Additionally, the ongoing COVID-19 pandemic has accelerated the adoption of remote work and digital services, further driving the demand for data center services in Italy.

Local special circumstances: In Italy, the Data Center Market is heavily influenced by the country's strict data protection laws, which have been further strengthened with the implementation of the European Union's General Data Protection Regulation (GDPR). This has led to a greater focus on data security and privacy in the market, with data center providers offering advanced security measures to comply with these regulations. Additionally, Italy's geographic location makes it an ideal hub for data center operations, with its close proximity to major European markets and well-developed telecommunications infrastructure. These factors have contributed to the growth of the Data Center Market in Italy, making it a key player in the European data center industry.

Underlying macroeconomic factors: The Data Center Market in Italy is heavily influenced by macroeconomic factors such as the country's overall economic health, government policies, and global economic trends. Italy's strong economy and supportive government policies have made it a desirable location for data center investments. Moreover, the increasing demand for digital services and the growing adoption of cloud computing are also contributing to the growth of the data center market in the country. Additionally, the government's initiatives to promote digital transformation and the country's strategic location in Europe make it an attractive destination for data center companies looking to expand their operations. However, the recent economic challenges faced by the country, such as the impact of the COVID-19 pandemic, may have a temporary effect on the market. Nevertheless, the long-term potential of the Italian data center market remains strong, driven by the country's favorable economic outlook and supportive government policies.

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.