Data Center - Switzerland

Switzerland

Revenue in the Data Center market is projected to reach US$2.88bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$1.38bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.20%, resulting in a market volume of US$3.71bn 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 Switzerland is experiencing minimal growth due to factors such as limited adoption of digital technologies, lack of health awareness among consumers, and challenges in providing online services. This can be attributed to the slow growth rate of sub-markets such as Servers, Storage, and Network Infrastructure. The market is also impacted by high costs and strict regulations, hindering its potential growth.

Customer preferences: As the demand for data storage and processing continues to grow, consumers in Switzerland are increasingly prioritizing energy efficiency and sustainability in their choice of data center providers. This is driven by the country's strong environmental consciousness and focus on renewable energy sources. Additionally, with the rise of remote work and online learning, there is a growing need for reliable and secure data centers to support these activities. This has led to a rise in demand for edge computing and cloud services, as well as a focus on data privacy and security.

Trends in the market: In Switzerland, the Data Center Market is experiencing a shift towards sustainable practices, with many companies investing in renewable energy sources to power their data centers. This trend is driven by the country's strict regulations and consumer demand for environmentally friendly solutions. Additionally, there is an increasing adoption of edge computing, as companies seek to reduce latency and improve performance. These trends have significant implications for industry stakeholders, as they must adapt their operations to meet sustainability standards and keep up with the demand for faster and more efficient data processing. Failure to do so may result in losing market share to more environmentally conscious and technologically advanced competitors.

Local special circumstances: In Switzerland, the Data Center Market is heavily influenced by the country's strict data privacy laws and regulations, which prioritize the protection of personal data. Additionally, the country's stable political climate and strong economy make it an attractive location for data center investments. Furthermore, Switzerland's mountainous terrain and cool climate provide natural advantages for data center cooling and energy efficiency. These unique factors contribute to the country's growing data center market, attracting both domestic and international players.

Underlying macroeconomic factors: The Data Center Market in Switzerland is heavily influenced by macroeconomic factors such as the country's stable economic health, favorable business climate, and strong investments in digital infrastructure. With a robust economy and government support for technology and innovation, Switzerland has become a hub for data center growth in Europe. Additionally, the country's strategic location and reliable energy supply make it an attractive destination for international companies looking to establish their presence in the region. Moreover, the growing trend of cloud computing and the need for data storage and processing are further driving the demand for data centers in Switzerland.

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.