Data Center - Americas

Americas

Revenue in the Data Center market is projected to reach US$121.40bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$56.15bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.04%, resulting in a market volume of US$153.50bn by 2028.
In global comparison, most revenue will be generated in the United States (US$99.16bn 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 Americas is witnessing significant growth and development driven by various factors.

Customer preferences: Customers in the Americas are increasingly demanding high-quality and reliable data center services to support their growing digital infrastructure needs. They prioritize data security, scalability, and flexibility in their data center solutions. Additionally, there is a growing preference for cloud-based services, as businesses seek to leverage the benefits of cloud computing for cost savings and operational efficiency.

Trends in the market: One of the key trends in the Data Center market in Americas is the shift towards edge computing. With the proliferation of Internet of Things (IoT) devices and the need for real-time data processing, businesses are looking to reduce latency and improve performance by deploying data centers closer to the edge of their networks. This trend is driving the demand for smaller, decentralized data centers in various locations across the Americas. Another trend is the increasing adoption of green and sustainable data center solutions. As environmental concerns become more prominent, businesses are looking for energy-efficient data centers that minimize their carbon footprint. This has led to the development of innovative cooling technologies, renewable energy integration, and efficient power management systems in data centers across the region.

Local special circumstances: The Data Center market in the Americas is diverse, with each country having its own unique set of circumstances. For example, in the United States, the market is highly competitive, with major players investing heavily in data center infrastructure. The presence of major technology companies and the need to support large-scale cloud services drive the demand for data centers in the country. In Latin American countries, such as Brazil and Mexico, there is a growing demand for data centers to support the digital transformation efforts of businesses. These countries are experiencing rapid urbanization and increasing internet penetration rates, which is fueling the need for robust data center infrastructure.

Underlying macroeconomic factors: The growth of the Data Center market in Americas is also influenced by underlying macroeconomic factors. The region has a strong digital economy, with businesses across various sectors increasingly relying on data-intensive applications and services. This has created a need for scalable and reliable data center infrastructure to support the growing demand for data storage and processing. Furthermore, government initiatives and policies aimed at promoting digitalization and attracting foreign investment have also contributed to the growth of the Data Center market in Americas. Governments are recognizing the importance of data centers in driving economic growth and are implementing measures to support the development of the industry. In conclusion, the Data Center market in Americas is experiencing significant growth and development driven by customer preferences for high-quality and reliable data center services, trends such as edge computing and sustainability, local special circumstances in each country, and underlying macroeconomic factors. As businesses continue to digitize and rely on data-intensive applications, the demand for data center infrastructure in the region is expected to further increase in the coming years.

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.