Data Center - Russia

Russia

Revenue in the Data Center market is projected to reach US$4.84bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$3.72bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.70%, resulting in a market volume of US$6.09bn 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 Russia is experiencing significant growth and development, driven by various factors influencing the industry in the region.

Customer preferences: Customers in Russia are increasingly demanding high-quality data center services to support their expanding digital infrastructure needs. They are seeking reliable and secure data storage solutions to ensure data protection and compliance with regulations. Additionally, there is a growing preference for energy-efficient data centers to reduce operational costs and environmental impact.

Trends in the market: One noticeable trend in the Russian Data Center market is the increasing adoption of cloud services and colocation facilities. This trend is driven by the need for scalable and flexible IT infrastructure solutions. Moreover, there is a rising demand for edge computing services to support the growing number of IoT devices and applications. Data center providers are also focusing on enhancing cybersecurity measures to address the evolving threat landscape.

Local special circumstances: Russia's Data Center market is uniquely influenced by government regulations and geopolitical factors. Data localization laws require companies to store and process personal data of Russian citizens within the country's borders, leading to a higher demand for local data center services. Furthermore, the geopolitical landscape has prompted organizations to prioritize data sovereignty and security, impacting their choice of data center providers.

Underlying macroeconomic factors: The development of the Data Center market in Russia is also influenced by macroeconomic factors such as GDP growth, technological advancement, and foreign investment. As the Russian economy continues to recover and diversify, there is an increased investment in digital infrastructure to support various industries. Technological advancements and innovation drive the adoption of data center services, while foreign investment plays a crucial role in expanding the market and improving service quality.

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.