Data Center

Revenue in the Data Center market is projected to reach US$3.87bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$2.71bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.52%, resulting in a market volume of US$5.06bn 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 Mexico has been experiencing minimal growth, influenced by factors such as slow adoption of digital technologies, limited health awareness among consumers, and challenges in online service convenience. The sub-markets of Servers, Storage, and Network Infrastructure play a significant role in shaping the overall market's growth rate. However, with increasing efforts towards digital transformation and rising demand for efficient data management, the market is expected to see a gradual increase in growth in the coming years.

Customer preferences: As digitalization continues to revolutionize industries in Mexico, the data center market is experiencing a significant shift towards cloud-based solutions. This trend is driven by the growing demand for remote work and e-commerce, as well as the need for reliable and secure data storage. With the country's increasing technological adoption and evolving business landscape, data centers are becoming crucial for organizations to stay competitive and meet consumer demands.

Trends in the market: In Mexico, the Data Center Market is experiencing a surge in demand for cloud services, with businesses shifting towards a more digital and remote workforce. This trend is expected to continue, with the Mexican government investing in initiatives to improve internet infrastructure and promote digital transformation. This has significant implications for industry stakeholders, as it highlights the need for data centers to adapt and expand their offerings to meet the evolving needs of businesses in Mexico. Additionally, the increasing use of data analytics and AI in the country's industries is driving the demand for data centers, making it a promising market for investors.

Local special circumstances: In Mexico, the Data Center Market is experiencing rapid growth due to the country's strategic location for international connectivity and its favorable business environment. Additionally, the increasing demand for cloud services and big data analytics is driving the market. Furthermore, the government's support for digital transformation and the implementation of data privacy regulations have created a favorable environment for data center development. In contrast, the market in Mexico is also influenced by the country's unique cultural diversity and its close relationship with the United States, which drives demand for cross-border data flow and disaster recovery services.

Underlying macroeconomic factors: The Data Center Market in Mexico is heavily influenced by macroeconomic factors such as the country's overall economic growth and stability, government policies and regulations, and investment in digital infrastructure. As the global demand for data storage and management continues to rise, Mexico's strong economic growth and favorable regulatory environment make it an attractive market for data center providers. Furthermore, the country's increasing adoption of cloud computing, as well as its strategic location and proximity to the United States, are driving the growth of the data center market in Mexico. Additionally, the government's efforts to modernize its digital infrastructure and promote digital transformation across industries are further boosting the demand for data center services in the country.

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.