Data Center

Revenue in the Data Center market is projected to reach US$158.30m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$99.56m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.90%, resulting in a market volume of US$221.00m 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 Slovenia has seen slow growth due to factors such as limited investment in server, storage and network infrastructure, and low awareness among consumers. However, with the increasing demand for digital technologies and rising need for online services, the market is expected to experience moderate growth in the coming years.

Customer preferences: In Slovenia, there has been a growing trend towards utilizing artificial intelligence (AI) and automation in data centers. This is driven by the need for efficient and cost-effective solutions, as well as the increasing demand for real-time data processing and storage. This shift is also influenced by the country's tech-savvy population and their preference for advanced technology solutions. Additionally, the rise of remote work and virtual events has increased the demand for reliable and secure cloud-based services, further driving the adoption of AI and automation in data centers.

Trends in the market: In Slovenia, the Data Center Market is experiencing a rise in cloud adoption, with more businesses moving their operations to the cloud for increased efficiency and cost savings. This trend is expected to continue as organizations prioritize digital transformation and remote work capabilities. This shift towards cloud-based solutions has significant implications for industry stakeholders, including increased demand for data center services and the need for robust security measures to protect sensitive data. Additionally, the rise of edge computing and Internet of Things (IoT) devices is driving the need for more localized data centers, creating opportunities for data center providers to expand their services and offerings.

Local special circumstances: In Slovenia, the Data Center Market is thriving due to its strategic location in Central Europe and its strong IT infrastructure. The country's favorable tax policies and government support for digital transformation have attracted major data center providers. Additionally, Slovenia's high level of digital literacy and tech-savvy population have created a demand for innovative data center solutions. The country's focus on sustainability and renewable energy sources has also influenced the growth of green data centers in the market.

Underlying macroeconomic factors: The Data Center Market in Slovenia is heavily influenced by macroeconomic factors such as the country's economic stability, government support for technological advancements, and investments in digital infrastructure. Other important financial indicators, such as the availability of skilled labor, access to capital, and tax policies also impact the market's performance. The country's strategic location in Europe and its strong digital infrastructure make it an attractive destination for data center investments. Additionally, the growing demand for cloud and colocation services in the region is driving the expansion of the data center market in Slovenia.

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.