Data Center - Norway

Norway

Revenue in the Data Center market is projected to reach US$1.70bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$1.00bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.51%, resulting in a market volume of US$2.33bn 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 Norway is currently experiencing minimal growth, due to factors such as high initial investment costs and limited capacity for expansion. This is especially evident in the sub-markets of Servers, Storage, and Network Infrastructure, where demand is not keeping up with supply. However, the growing need for data storage and processing, driven by the increasing reliance on digital technologies and data-driven decision making, is expected to bolster the market in the coming years. Additionally, the government's initiatives to promote renewable energy and reduce carbon emissions in data centers may also play a crucial role in driving growth in this market.

Customer preferences: In Norway, the data center market has seen a rise in demand for sustainable and energy-efficient solutions, as consumers prioritize environmentally-friendly options. This trend is driven by the country's strong focus on sustainability and the increasing awareness of climate change. Additionally, there has been a shift towards cloud-based services, as more individuals and businesses opt for remote work and digital solutions. This has led to a growing need for reliable and secure data centers to support these services.

Trends in the market: In Norway, the data center market is experiencing a shift towards more sustainable and environmentally-friendly practices. This is driven by the government's initiatives to reduce carbon emissions and promote green energy. As a result, there is an increased demand for data centers powered by renewable energy sources. This trend is expected to continue, with companies increasingly prioritizing sustainability in their data center operations. This has significant implications for industry stakeholders, as they may need to adapt their business models and invest in renewable energy infrastructure to remain competitive in the market. Additionally, the move towards sustainability in data centers aligns with consumer preferences and can enhance a company's brand image.

Local special circumstances: In Norway, the Data Center Market is heavily influenced by the country's focus on sustainability and renewable energy sources. With its abundant supply of hydroelectric power, Norway is an attractive location for data centers looking to reduce their carbon footprint. Additionally, the country's strict data privacy laws and high regard for data security make it a desirable market for businesses handling sensitive information. This combination of environmental and regulatory factors has led to a thriving data center market in Norway, with many international companies choosing to establish a presence in the country.

Underlying macroeconomic factors: The Data Center Market in Norway is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. With a strong focus on renewable energy and a stable economy, Norway has become a hub for data centers, attracting both domestic and international investments. Additionally, the increasing demand for cloud services and the rapid growth of the internet of things (IoT) are driving the growth of the data center market in Norway, creating opportunities for providers to expand their services and offerings.

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.