Data Center - Worldwide

Worldwide

Revenue in the Data Center market is projected to reach US$416.10bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$239.70bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.45%, resulting in a market volume of US$624.10bn 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 has been witnessing significant growth and development worldwide.

Customer preferences: Customers are increasingly demanding data centers that offer high levels of security, reliability, and scalability to meet their growing digital needs. They are also looking for energy-efficient solutions that can help reduce operational costs and environmental impact.

Trends in the market: In the United States, there is a growing trend towards hyperscale data centers to support the increasing demand for cloud services and big data analytics. These data centers are designed to scale rapidly and efficiently to meet the needs of large technology companies. In Europe, there is a focus on sustainability, with data centers adopting green technologies such as renewable energy sources and efficient cooling systems. Asia-Pacific is experiencing a surge in colocation data centers as businesses look to outsource their IT infrastructure to third-party providers.

Local special circumstances: In China, the government's strict regulations on data localization have led to the construction of more domestic data centers to store and manage data within the country's borders. In the Middle East, the rapid digitization of economies and the emergence of smart cities are driving the demand for advanced data center solutions. In Africa, the lack of reliable power infrastructure is a major challenge for data center operators, leading to innovations in off-grid and renewable energy solutions.

Underlying macroeconomic factors: The global shift towards remote work and digital transformation is fueling the demand for data center services across the world. The increasing adoption of Internet of Things (IoT) devices, artificial intelligence, and 5G technology is generating vast amounts of data that need to be stored and processed in data centers. Additionally, the rise of e-commerce, online streaming, and social media platforms is driving the need for robust data center infrastructure to support these digital services.

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.