Data Center

Revenue in the Data Center market is projected to reach US$580.10m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$516.70m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.00%, resulting in a market volume of US$740.40m 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 Serbia is experiencing sluggish growth due to factors such as limited investment in IT infrastructure and slow adoption of digital technologies. This is impacting the overall market, including the sub-markets of Servers, Storage, and Network Infrastructure, resulting in a subdued growth rate. However, with increasing awareness and convenience offered by online services, the market is expected to see gradual growth in the coming years.

Customer preferences: The growing popularity of e-commerce and online shopping has led to a rise in demand for data centers in Serbia. Consumers are increasingly relying on digital platforms for their shopping needs, driven by the convenience and safety of online transactions. This trend is further fueled by the rise of social media and influencer marketing, which has significantly influenced consumer purchasing decisions. As a result, data centers in Serbia are adapting to meet the growing demand for reliable and secure online shopping experiences.

Trends in the market: In Serbia, the Data Center Market is experiencing a surge in demand for cloud computing services, with more businesses opting for cost-effective and scalable solutions. This trend is expected to continue, as the country's digital infrastructure and IT capabilities continue to improve. Additionally, there is a growing inclination towards green data centers, with companies adopting sustainable practices to reduce their carbon footprint. These trends are significant for industry stakeholders, as they present opportunities for growth and innovation. However, they also pose challenges, such as the need for continuous investment in technology and infrastructure. Overall, the trajectory of these trends is towards a more advanced and sustainable data center market in Serbia, with implications for the economy and competitiveness in the global market.

Local special circumstances: In Serbia, the Data Center Market is rapidly growing due to the country's strategic location at the crossroads of Europe and Asia, making it an ideal hub for international connectivity. Additionally, the government's efforts to promote digital transformation and attract foreign investment have led to a favorable business environment for data centers. The market is also influenced by the country's low energy costs and favorable tax incentives for data center operators, making it a cost-effective option for businesses. The cultural emphasis on education and the country's strong IT talent pool further contribute to its success in the data center market.

Underlying macroeconomic factors: The Data Center Market in Serbia is heavily influenced by macroeconomic factors such as the country's economic stability, government policies, and investment in technological infrastructure. As Serbia continues to develop its digital economy, the demand for data storage and management solutions is expected to increase. Additionally, the country's strategic location at the crossroads of Europe and Asia makes it an attractive destination for data center investments. However, factors such as political instability and weak regulatory frameworks may hamper market growth. Overall, the performance of the Data Center Market in Serbia is heavily dependent on the country's economic and political landscape.

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.