Data Center

Revenue in the Data Center market is projected to reach US$2.69bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$1.88bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.21%, resulting in a market volume of US$3.47bn 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 Poland is currently experiencing subdued growth, influenced by factors such as slow adoption of digital technologies, limited health awareness among consumers, and challenges in online services. This can be seen in the sub-markets of Servers, Storage, and Network Infrastructure. However, with increasing government initiatives and emerging technologies, the market is expected to pick up pace in the coming years.

Customer preferences: The growing reliance on digital technologies has led to a rise in demand for data center services in Poland. This trend is driven by the increasing adoption of cloud computing and the need for secure and efficient data storage and management. Additionally, the emergence of artificial intelligence and the Internet of Things has resulted in a higher volume of data being generated, further driving the demand for data centers. This shift towards digitalization is also influenced by the country's tech-savvy population and its strong government support for digital transformation.

Trends in the market: In Poland, the Data Center Market is experiencing a surge in demand for edge computing solutions. This trend is driven by the increasing adoption of IoT devices and the need for real-time data processing. As a result, data center providers are expanding their edge computing capabilities to meet the growing demand. This trend is significant as it allows organizations to process and analyze data closer to the source, reducing latency and improving efficiency. However, it also presents challenges for industry stakeholders, such as the need for advanced infrastructure and security measures to support edge computing. Additionally, there is a potential for increased competition in the market as more providers enter the edge computing space.

Local special circumstances: In Poland, the Data Center Market is thriving due to its strategic location in Central and Eastern Europe, making it a hub for international data traffic. Additionally, the country's strong IT infrastructure and skilled workforce have attracted major players in the market. Furthermore, Poland's favorable regulatory environment and government support for digitalization have contributed to the growth of the data center industry. This unique combination of factors has positioned Poland as a key player in the European data center market.

Underlying macroeconomic factors: The Data Center Market in Poland is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investments in IT infrastructure. The country's strong economic growth and stable political environment have attracted significant foreign investments, leading to the development of advanced data center facilities. Additionally, the increasing demand for cloud computing services and the growing digital transformation of businesses in Poland are driving the demand for data center services. Furthermore, the government's initiatives to develop a digital economy and its investments in improving broadband infrastructure are expected to further fuel market growth.

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.