Data Center - Turkey

Turkey

Revenue in the Data Center market is projected to reach US$1.93bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$1.56bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.65%, resulting in a market volume of US$2.54bn 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 Turkey has been experiencing significant growth in recent years, driven by various factors shaping the industry landscape in the country.

Customer preferences: Customers in Turkey are increasingly demanding high-quality data center services to support their digital transformation initiatives. They are looking for reliable and secure data storage solutions that can ensure seamless operations and data protection. This growing demand is pushing data center providers to enhance their offerings and expand their capabilities to meet the evolving needs of customers.

Trends in the market: One of the key trends in the Data Center market in Turkey is the rising adoption of cloud services. Businesses are moving towards cloud-based solutions to improve flexibility, scalability, and cost-efficiency. This shift is driving the demand for data center services that can support cloud infrastructure and provide connectivity options to ensure smooth operations. Additionally, there is a growing focus on sustainability and energy efficiency in data center operations, with providers investing in green technologies to reduce their environmental impact.

Local special circumstances: Turkey's strategic location between Europe and Asia positions it as a key hub for data center investments. The country's geographic advantage makes it an attractive destination for international companies looking to expand their presence in the region. Furthermore, government initiatives to support the digital economy and improve infrastructure are creating favorable conditions for the growth of the Data Center market in Turkey. These efforts aim to enhance connectivity, increase data security, and promote innovation in the technology sector.

Underlying macroeconomic factors: The growing digitalization of businesses and the increasing use of data-intensive applications are driving the demand for data center services in Turkey. As companies across various industries rely more on data processing and storage, the need for reliable and efficient data center solutions continues to grow. Moreover, Turkey's young and tech-savvy population is contributing to the expansion of the digital economy, creating opportunities for data center providers to cater to the evolving needs of the market.

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.