Data Center - Canada

Canada

Revenue in the Data Center market is projected to reach US$8.08bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$4.18bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.56%, resulting in a market volume of US$10.59bn 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 Canada Data Center market has seen steady growth due to factors such as increasing demand for digital transformation, rising adoption of cloud computing, and the need for efficient data management. Despite minimal growth, the market is impacted by factors such as security concerns and high infrastructure costs.

Customer preferences: In recent years, there has been a growing demand for cloud-based solutions in the Data Center Market, driven by a shift towards remote work and increasing reliance on digital infrastructure. This has also led to a greater need for data security and privacy, with consumers prioritizing providers that offer robust solutions. Additionally, there is a growing trend towards green and sustainable data centers, reflecting consumers' increasing awareness of environmental factors and their impact on the industry.

Trends in the market: In Canada, the Data Center Market is experiencing a surge in demand for cloud-based services, with more companies opting for virtual data storage and management solutions. This trend is driven by the increasing need for scalability, cost efficiency, and improved disaster recovery capabilities. As a result, data center providers are investing in expanding their cloud offerings, while also leveraging emerging technologies like AI and edge computing to enhance their services. These developments are significant for industry stakeholders as they open up new opportunities for growth and innovation, while also challenging traditional data center models. They also highlight the importance of staying ahead of the curve and adapting to evolving customer needs in a constantly changing market landscape.

Local special circumstances: In Canada, the Data Center Market is thriving due to the country's stable political and economic environment, as well as its advanced technology infrastructure. Canada's vast landmass and relatively small population also make it an ideal location for large data centers. Additionally, the Canadian government has strict data protection laws, providing a secure environment for sensitive data storage. This, coupled with the country's commitment to sustainable and environmentally-friendly practices, has attracted major global players to invest in the Canadian data center market.

Underlying macroeconomic factors: The Data Center Market in Canada is heavily influenced by macroeconomic factors such as the country's stable economic growth, government investments in technology and infrastructure, and favorable regulatory policies. With Canada's strong economic position and supportive government policies, the country has become an attractive destination for businesses looking to establish data centers. Furthermore, the growing digitalization of businesses and increasing demand for cloud services are contributing to the growth of the data center market in Canada. As the country continues to invest in technology and create a conducive business environment, the data center market is expected to experience steady growth 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.