Data Center - Northern Europe

Northern Europe

Revenue in the Data Center market is projected to reach US$9.84bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$5.46bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.86%, resulting in a market volume of US$13.08bn 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 Northern Europe is experiencing mild growth, driven by factors such as increasing demand for digital technologies, rising awareness of data privacy and security, and the convenience of online services. These factors are impacting the sub-markets of Servers, Storage, and Network Infrastructure, contributing to the overall growth of the market. However, factors such as high initial costs and complex regulations may be hindering the market's growth rate.

Customer preferences: As technology continues to advance, consumers in the Northern Europe Data Center Market are gravitating towards cloud-based solutions for data storage and management. This trend is fueled by the growing need for remote work and collaboration, as well as the increasing demand for secure and efficient data management solutions. With a focus on convenience and accessibility, cloud-based data centers are becoming the preferred choice for businesses and individuals alike.

Trends in the market: In Northern Europe, the Data Center Market is experiencing a surge in demand for sustainable and energy-efficient data centers. This trend is driven by the increasing focus on reducing carbon emissions and achieving net-zero goals. Data center providers are investing in renewable energy sources, such as wind and solar, to power their facilities. This not only helps reduce their environmental footprint, but also lowers operational costs. Additionally, there is a growing trend of data center providers offering green certification and transparency reports to showcase their sustainability efforts. This trend is significant as it aligns with the region's strong commitment to sustainability and can attract environmentally conscious clients. However, it also presents challenges for industry stakeholders, such as the high initial costs of implementing sustainable practices and the need for continuous innovation to stay competitive in the market. Nevertheless, the trajectory of this trend is expected to continue, with more data center providers adopting sustainable practices and governments implementing stricter regulations for energy consumption. This presents opportunities for industry stakeholders to differentiate themselves and cater to the growing demand for sustainable data centers.

Local special circumstances: In Northern Europe, the Data Center Market is thriving due to the region's high internet penetration and government support for digital infrastructure development. Additionally, the strict data privacy laws in countries like Germany and Sweden have boosted demand for secure and compliant data storage solutions. In contrast, the market in Southern Europe is hindered by slower adoption of digital technologies and less favorable regulatory environments, creating a fragmented market with varying levels of investment and development.

Underlying macroeconomic factors: The Data Center Market in Northern Europe is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with strong economic growth and a supportive regulatory environment are experiencing higher demand for data center services, as companies seek to expand their digital capabilities. Additionally, the growing emphasis on sustainability and energy-efficient solutions is driving investments in green data centers, which is a key factor in the region's market growth. Furthermore, the increasing adoption of cloud computing and the rise of big data analytics are also contributing to the growth of the data center market in Northern Europe.

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.