Data Center - Benelux

Benelux

Revenue in the Data Center market is projected to reach US$6.51bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$3.81bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.26%, resulting in a market volume of US$8.30bn 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 Benelux is experiencing significant growth and development, driven by several key factors.

Customer preferences: Customers in the Benelux region have shown a strong preference for reliable and secure data storage solutions. With the increasing digitization of businesses and the growing importance of data-driven decision making, organizations are seeking data centers that can provide high levels of uptime, robust security measures, and scalable infrastructure. This has led to a rise in demand for colocation services, where businesses can rent space within a data center facility to house their servers and IT equipment.

Trends in the market: One of the major trends in the Data Center market in Benelux is the increasing adoption of cloud computing services. Cloud providers are setting up data centers in the region to cater to the growing demand for cloud-based solutions. This trend is driven by the benefits that cloud computing offers, such as cost savings, scalability, and flexibility. As a result, businesses in Benelux are increasingly relying on cloud services for their IT infrastructure needs, which in turn is driving the demand for data center facilities. Another trend in the market is the focus on sustainability and energy efficiency. Data centers are known to consume significant amounts of energy, and there is a growing awareness of the environmental impact of these facilities. As a result, data center operators in Benelux are investing in energy-efficient technologies and adopting renewable energy sources to power their facilities. This not only helps reduce carbon emissions but also lowers operating costs for data center operators.

Local special circumstances: The Benelux region has a favorable business environment and is home to several multinational corporations and technology companies. This has led to a concentration of data center facilities in major cities such as Amsterdam, Brussels, and Luxembourg. The presence of these companies and their data-intensive operations has created a demand for data center services in the region.

Underlying macroeconomic factors: The Benelux region has a strong and stable economy, which has contributed to the growth of the Data Center market. The region is known for its advanced infrastructure, favorable tax policies, and skilled workforce, making it an attractive location for businesses to establish their data center operations. Additionally, the region's central location within Europe makes it a strategic hub for international connectivity, further driving the demand for data center services. In conclusion, the Data Center market in Benelux is experiencing growth and development driven by customer preferences for reliable and secure data storage solutions, the increasing adoption of cloud computing services, the focus on sustainability and energy efficiency, as well as the region's favorable business environment and strong economy. These factors are expected to continue driving the growth of the Data Center market in Benelux 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.