Data Center

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 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 Russia is experiencing slow growth, influenced by factors such as limited investments in Servers, Storage and Network Infrastructure, and the country's economic challenges. Despite this, the market is expected to see modest growth due to increasing demand for digital technologies and rising awareness about the benefits of online services.

Customer preferences: As Russia continues to modernize and digitize its economy, the demand for data centers has increased significantly. This is driven by the growing reliance on online services and the need for reliable and secure storage of data. Additionally, there has been a notable shift towards cloud-based solutions, as businesses and consumers seek more flexible and cost-effective options. This trend is also influenced by the increasing popularity of remote work and the need for seamless digital collaboration. As a result, data centers are not just seen as a necessity for large corporations, but also for small and medium-sized businesses and individuals. This has led to a surge in demand for colocation services, as well as managed and hybrid cloud solutions.

Trends in the market: In Russia, the Data Center Market is experiencing a surge in demand due to the increasing adoption of cloud computing and big data analytics. This trend is expected to continue as companies seek to improve efficiency and reduce costs through data centralization. Additionally, there is a growing trend towards green data centers, with a focus on energy efficiency and sustainability. This is a significant shift, as data centers are one of the largest energy consumers in the country. It also presents opportunities for industry stakeholders to capitalize on the demand for eco-friendly solutions. However, this trend also poses challenges for traditional data center providers who may struggle to keep up with the changing demands of the market. As such, companies in this sector will need to constantly innovate and adapt to stay competitive.

Local special circumstances: In Russia, the Data Center Market is experiencing rapid growth due to the country's vast territory and diverse climate, creating a need for reliable and efficient data storage and management solutions. Additionally, the government's initiatives to modernize and digitalize various industries, such as banking and healthcare, have led to increased demand for data centers. Cultural factors, such as the emphasis on data security and privacy, also play a significant role in shaping the market. Moreover, regulatory requirements for data localization have further fueled the demand for data centers in Russia, making it a unique and attractive market for data center providers.

Underlying macroeconomic factors: The Data Center Market in Russia is greatly impacted by macroeconomic factors such as the country's economic growth, government policies, and investment in digital infrastructure. As the Russian economy continues to recover from the effects of the global economic crisis, there is a growing demand for data center services to support the growth of various industries. The government's initiatives to modernize the country's digital infrastructure and attract foreign investments also play a crucial role in shaping the data center market in Russia. Additionally, the increasing adoption of cloud computing and big data analytics by businesses is further driving the demand for data center services.

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.