Data Center - NAFTA

NAFTA

Revenue in the Data Center market is projected to reach US$135.10bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$58.86bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 11.00%, resulting in a market volume of US$227.70bn 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 NAFTA is experiencing minimal growth, impacted by factors such as saturation in the Servers, Storage, and Network Infrastructure sub-markets, and slow adoption of digital technologies. Rising costs and competition also play a role in the market's slow growth rate.

Customer preferences: In the Data Center Market, there is a growing trend towards cloud-based solutions, as businesses seek to increase efficiency and reduce costs. This has led to a rise in demand for data centers that can support large-scale data processing and storage. Additionally, with the rise of remote work and virtual collaboration, data centers are also becoming crucial for ensuring secure and reliable connectivity. This shift towards digital solutions is also driven by the increasing need for remote access and management of critical business operations.

Trends in the market: In the context of NAFTA and the Data Center Market, there is a growing trend of cross-border data sharing and collaboration among companies. This is driven by the increasing demand for cloud services and the need for efficient data management solutions. As a result, there is a rise in the adoption of hybrid cloud and multi-cloud strategies, allowing companies to store and process data in multiple locations. This trend is significant as it enables companies to leverage the benefits of different cloud providers and optimize their data management capabilities. However, it also raises concerns regarding data privacy and security, making it crucial for industry stakeholders to implement strong data protection measures. Additionally, this trend has implications for the data center market, as it drives the need for more data centers in strategic locations and increases competition among providers to offer reliable and cost-effective services.

Local special circumstances: In Mexico, the Data Center Market is experiencing a surge in demand due to the country's strategic location and favorable business climate. The country's proximity to the United States and its participation in NAFTA make it an attractive location for international companies looking to establish a presence in the region. Additionally, Mexico's growing tech-savvy population and government incentives for technological development have further fueled the growth of the Data Center Market. Furthermore, the country's strict data privacy laws have instilled confidence in businesses and consumers, boosting the demand for secure data storage solutions.

Underlying macroeconomic factors: The Data Center Market is heavily impacted by macroeconomic factors such as global economic trends, national economic health, and fiscal policies. Countries with strong economic growth and stable political environments are seeing a rise in investments in data centers, as businesses seek to expand their digital capabilities. Additionally, the increasing adoption of cloud computing and the growing need for data storage and processing are also driving the demand for data centers. However, countries with economic instability and regulatory challenges may experience slower growth in their data center markets, as businesses may be hesitant to invest in uncertain environments. The Data Center Market is also influenced by factors such as technological advancements and government support for digital infrastructure.

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.