Data Center - D-A-CH

D-A-CH

Revenue in the Data Center market is projected to reach US$20.44bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$12.16bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.70%, resulting in a market volume of US$26.49bn 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 D-A-CH, which comprises Germany, Austria, and Switzerland, is experiencing significant growth and development. Customer preferences in the Data Center market in D-A-CH are shifting towards increased demand for cloud computing services, big data analytics, and artificial intelligence. Businesses in the region are increasingly relying on these technologies to drive innovation, improve operational efficiency, and gain a competitive edge. As a result, there is a growing need for robust and scalable data center infrastructure to support these digital transformation initiatives. Trends in the market indicate a rise in the adoption of colocation services. Many businesses in D-A-CH are opting to outsource their data center infrastructure to specialized providers, rather than investing in building and maintaining their own facilities. This trend is driven by the desire to reduce capital expenditure, improve operational efficiency, and leverage the expertise of data center service providers. Colocation facilities offer secure and reliable environments for housing IT infrastructure, along with connectivity options to support hybrid cloud deployments. Local special circumstances in D-A-CH contribute to the development of the Data Center market. Germany, for example, has stringent data protection regulations, which require businesses to store and process data within the country's borders. This has led to an increased demand for local data center facilities that can guarantee compliance with these regulations. Additionally, Switzerland's reputation for data privacy and security has positioned the country as an attractive location for hosting data center infrastructure, particularly for businesses in highly regulated industries such as finance and healthcare. Underlying macroeconomic factors also play a role in the growth of the Data Center market in D-A-CH. The region's strong economy, technological advancements, and favorable business environment have created a conducive climate for investment in data center infrastructure. Furthermore, the increasing digitization of industries and the proliferation of internet-connected devices are driving the demand for data storage and processing capabilities, further fueling the growth of the Data Center market. In conclusion, the Data Center market in D-A-CH is experiencing growth and development driven by customer preferences for cloud computing, big data analytics, and artificial intelligence. The adoption of colocation services is on the rise, and local special circumstances, such as data protection regulations and Switzerland's data privacy reputation, contribute to the market's development. Underlying macroeconomic factors, including a strong economy and increasing digitization, further support the growth of the Data Center market in D-A-CH.

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.