Data Center - Slovakia

Slovakia

Revenue in the Data Center market is projected to reach US$339.20m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$206.70m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.68%, resulting in a market volume of US$447.20m 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 Slovakia has shown minimal growth, influenced by factors like slow adoption of digital technologies, limited health awareness, and lack of convenience in online services. The sub-markets of Servers, Storage, and Network Infrastructure all play a role in shaping the overall market.

Customer preferences: With the rise of remote work and virtual communication, the demand for reliable and efficient data centers has increased significantly in Slovakia. This trend is driven by the growing preference for remote access to services and information, as well as the need for secure and reliable data storage. As businesses and individuals become more reliant on digital technologies, the demand for data centers is expected to continue to grow in the coming years. This shift towards a digital economy is also accompanied by a growing focus on data privacy and security, making data centers an essential component of modern business operations.

Trends in the market: In Slovakia, the Data Center Market is experiencing a surge in demand for cloud services, with more companies adopting a hybrid cloud approach to optimize their IT infrastructure. This trend is driven by the need for scalability, cost-effectiveness, and data security. Additionally, there is a growing trend of colocation in the data center market, as companies look for ways to reduce their operational costs and improve performance. These trends indicate a shift towards a more digital and interconnected business landscape, with potential implications for industry stakeholders such as cloud service providers, IT infrastructure companies, and data center operators. As the demand for cloud services and colocation continues to grow, it is crucial for industry players to stay ahead of the curve and offer innovative solutions to meet the evolving needs of businesses in Slovakia.

Local special circumstances: In Slovakia, the Data Center Market is growing due to the country's strategic location and its stable political environment. The market has benefited from the government's support for digital transformation and the growing demand for cloud services. Additionally, the country's low energy costs and favorable tax policies have attracted major data center players to establish their presence in Slovakia. This unique combination of factors has made Slovakia a key player in the European data center market.

Underlying macroeconomic factors: The Data Center Market in Slovakia is greatly impacted by macroeconomic factors such as the country's economic stability, government policies, and investment in infrastructure. As a part of the global market, Slovakia's data center industry is influenced by global economic trends and the overall financial health of the nation. Favorable government policies and investments in digital infrastructure can drive market growth, while regulatory challenges and limited funding can hinder the market's progress. Additionally, the increasing demand for digital transformation and the rise of data-driven technologies in various industries are also contributing to the growth of the data center market in Slovakia.

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.