Data Center

Revenue in the Data Center market is projected to reach US$1.30bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$790.00m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.17%, resulting in a market volume of US$1.68bn 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 New Zealand has seen modest growth due to factors such as increasing demand for digital services, growing awareness about data security, and advancements in technology. Despite minimal growth, the market is impacted by factors such as high initial costs, limited resources, and competition among sub-markets.

Customer preferences: With the rise of remote working and online education, there has been a significant increase in demand for reliable and efficient data centers in New Zealand. This trend is further fueled by the country's growing tech-savvy population and the government's efforts to promote digital transformation. As a result, data centers are now offering more advanced and specialized services, such as cloud computing and colocation, to cater to the evolving needs of consumers. Additionally, the emphasis on sustainability and energy efficiency has become a key factor in decision making for businesses, leading to a rise in eco-friendly data center solutions.

Trends in the market: In New Zealand, the Data Center Market is experiencing a surge in demand for cloud-based services, driven by the increasing adoption of digital transformation by businesses. This trend is expected to continue as companies prioritize efficiency and cost savings through outsourcing their data management needs. Additionally, there is a growing focus on sustainability in the market, with companies investing in energy-efficient infrastructure and renewable energy sources. These trends signal a shift towards a more advanced and environmentally conscious data center industry in New Zealand, providing opportunities for stakeholders to innovate and differentiate themselves in the market.

Local special circumstances: In New Zealand, the Data Center Market is experiencing significant growth due to the country's favorable geographical location, which allows for easy access to both Australia and Asia. Additionally, the government's focus on promoting renewable energy sources has led to the development of environmentally-friendly data centers. The country's strong emphasis on data privacy and security regulations also sets it apart from other markets, creating a secure and trustworthy environment for data storage and management.

Underlying macroeconomic factors: The Data Center Market in New Zealand is influenced by macroeconomic factors such as technological advancements, government policies, and infrastructure investment. The country's strong economic growth and stable political climate have led to a favorable business environment for data center providers. Additionally, the increasing demand for cloud-based services and the growing adoption of digital transformation strategies by businesses are driving the growth of the market in New Zealand. Furthermore, the government's initiatives to promote digitalization and improve internet connectivity across the country are expected to further boost the growth of the data center market in New Zealand.

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.