Data Center - Canada

Canada

Revenue in the Data Center market is projected to reach US$7.31bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$3.86bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 7.36%, resulting in a market volume of US$9.71bn 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 Canada has been experiencing significant growth in recent years. Customer preferences for secure and reliable data storage, as well as the increasing demand for cloud services, have been driving this growth. Additionally, local special circumstances and underlying macroeconomic factors have contributed to the development of the Data Center market in Canada. Customer preferences in the Data Center market in Canada are centered around secure and reliable data storage. With the increasing amount of data being generated by businesses and individuals, there is a growing need for data centers that can provide secure and efficient storage solutions. Customers are also looking for data centers that can offer high levels of uptime and reliability, ensuring that their data is always accessible. Another customer preference driving the growth of the Data Center market in Canada is the increasing demand for cloud services. Cloud computing has become an essential part of many businesses' operations, allowing them to store and access data remotely. This has led to a higher demand for data centers that can support cloud services and provide the necessary infrastructure to ensure smooth and efficient operations. Trends in the Data Center market in Canada include the development of edge computing capabilities and the adoption of green data center practices. Edge computing involves processing data closer to the source, reducing latency and improving overall performance. This trend is driven by the increasing demand for real-time data processing and the need for faster response times. Green data center practices, such as the use of renewable energy sources and energy-efficient infrastructure, are also gaining traction in Canada as businesses and consumers become more environmentally conscious. Local special circumstances in Canada have contributed to the growth of the Data Center market. Canada has a relatively stable political and economic environment, making it an attractive location for data center investments. The country also has a large land area, providing ample space for the construction of data centers. Additionally, Canada has a highly skilled workforce and a strong technology sector, making it an ideal location for companies looking to establish their data center operations. Underlying macroeconomic factors, such as the increasing digitalization of businesses and the growth of the IT industry, have also played a role in the development of the Data Center market in Canada. As businesses continue to digitize their operations and rely more on technology, the demand for data centers is expected to increase. The IT industry, which includes software development, telecommunications, and other related services, is also experiencing rapid growth, further driving the need for data center infrastructure. In conclusion, the Data Center market in Canada is experiencing growth due to customer preferences for secure and reliable data storage, as well as the increasing demand for cloud services. Trends such as the development of edge computing capabilities and the adoption of green data center practices are shaping the market. Local special circumstances, including a stable political and economic environment, ample land space, and a skilled workforce, are also contributing to the growth. Underlying macroeconomic factors, such as the increasing digitalization of businesses and the growth of the IT industry, are further driving the development of the Data Center market in Canada.

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.