Data Center - North America

North America

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.

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Market

Region

Region comparison

Currency

Analyst Opinion

The Data Center market in North America continues to experience significant growth and development, driven by various factors influencing the industry.

Customer preferences: Customers in North America are increasingly seeking data centers that offer high levels of security, reliability, and scalability to meet their growing digital needs. They prioritize facilities that can provide efficient cooling systems, energy efficiency, and connectivity to support their expanding data storage and processing requirements.

Trends in the market: In the United States, there is a growing trend towards edge computing to reduce latency and improve overall performance for users. This has led to an increased demand for smaller, more distributed data centers located closer to end-users. Additionally, there is a rising interest in sustainable data center practices, with a focus on renewable energy sources and green technologies to minimize environmental impact.

Local special circumstances: Canada, as part of the North American market, is becoming an attractive location for data center investment due to its cooler climate, which naturally supports lower cooling costs for facilities. The country's political stability, reliable power infrastructure, and strong data privacy regulations also make it an appealing destination for data center operators looking to expand their presence in the region.

Underlying macroeconomic factors: The increasing adoption of cloud services, IoT devices, and big data analytics across various industries is driving the demand for data center services in North America. As businesses strive to digitize their operations and leverage data-driven insights, the need for robust and secure data storage solutions continues to grow. Additionally, the ongoing digital transformation efforts and the proliferation of online services are fueling the expansion of the Data Center market in the region.

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.