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 has been experiencing minimal growth, impacted by factors such as slow adoption of digital technologies and limited health awareness among consumers. The sub-markets of Servers, Storage, and Network Infrastructure also play a role in the overall growth rate.

Customer preferences: As technology continues to advance, consumers in the North American Data Center Market are increasingly looking for virtual solutions to manage and monitor their health and wellness. This has led to a rise in demand for wearable devices and health tracking apps, as well as online doctor consultations. This trend is driven by the convenience and accessibility of digital options, as well as the need for remote management of chronic conditions.

Trends in the market: In North America, the Data Center Market is experiencing a surge in demand for cloud services, driven by the increasing adoption of remote work and digitalization. As a result, there is a growing trend towards hybrid and multi-cloud strategies, with companies leveraging a combination of public and private clouds for their data storage needs. This trajectory is significant as it allows for greater flexibility and scalability, while also addressing concerns around data security and compliance. Industry stakeholders, including data center providers and cloud service providers, must adapt to this trend by investing in infrastructure and services to support hybrid and multi-cloud environments. Failure to do so could result in losing out on a significant portion of the market share.

Local special circumstances: In North America, the Data Center Market is heavily influenced by the region's advanced technological infrastructure and large-scale adoption of cloud computing. This has led to a high demand for data centers, especially in urban centers. Additionally, the strict data privacy regulations in this region, particularly in the United States, have further fueled the growth of the market. In comparison to other markets, such as Europe or Asia, North America has a highly competitive landscape with a large number of established data center providers. This has led to a constant drive for innovation and cost-efficiency in the market.

Underlying macroeconomic factors: The Data Center Market in North America is greatly impacted by macroeconomic factors such as technological advancements, government policies, and financial investments in digital infrastructure. Countries with favorable regulatory environments and strong investments in digital technologies are seeing rapid market growth, while regions with regulatory challenges and limited funding are experiencing slower growth. The increasing demand for data storage and processing due to the rise in internet usage and online activities, along with the growth of cloud computing and big data analytics, are also contributing to the growth of the Data Center Market in North America. Moreover, the increasing adoption of IoT devices and the need for efficient data management are further driving the demand for data centers 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.