Data Center - Denmark

Denmark

Revenue in the Data Center market is projected to reach US$2.23bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$1.30bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.53%, resulting in a market volume of US$3.06bn 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

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Currency

Analyst Opinion

The Data Center Market in Denmark has been experiencing a slow growth rate, influenced by factors such as limited server, storage, and network infrastructure sub-markets, as well as a lack of digital adoption due to lower health awareness among consumers and a preference for traditional healthcare services.

Customer preferences: As Denmark continues to be a leader in sustainability and green energy, there is a growing demand for eco-friendly data center solutions. Consumers are also placing a greater emphasis on data security and privacy, driving the adoption of secure data centers and cloud services. Additionally, there is a shift towards edge computing, fueled by the increasing use of Internet of Things (IoT) devices and the need for real-time data processing. This trend is expected to shape the future of the data center market in Denmark.

Trends in the market: In Denmark, the Data Center Market is experiencing a shift towards green and sustainable practices, with the government's goal to become carbon neutral by 2050. This has led to an increase in the adoption of renewable energy sources and energy-efficient technologies in data centers. Furthermore, there is a growing trend towards the use of artificial intelligence and automation in data center operations, optimizing efficiency and reducing costs. These developments signal a promising future for the industry, as companies strive to meet the increasing demand for data storage and processing while minimizing their environmental impact. However, there may be implications for stakeholders, such as increased competition among suppliers of sustainable solutions and potential changes in regulations.

Local special circumstances: In Denmark, the Data Center Market is thriving due to the country's strategic location, advanced telecommunications infrastructure, and favorable regulatory environment. The government's commitment to renewable energy also plays a significant role in attracting data center operators. Furthermore, the country's strong focus on sustainability and green initiatives has led to the adoption of innovative cooling and energy-efficient technologies in the data center industry. This unique combination of factors makes Denmark a highly attractive market for data center investment and development.

Underlying macroeconomic factors: The data center market in Denmark is heavily influenced by macroeconomic factors such as technological advancements, government support, and investment in digital infrastructure. With a strong focus on renewable energy and digitalization, Denmark offers a favorable regulatory environment for data center development. Additionally, the country's stable economy, sound fiscal policies, and high-quality infrastructure make it an attractive location for data center investment. Furthermore, the increasing demand for cloud services and the growing reliance on digital technologies in various industries are driving the growth of the data center market in Denmark.

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.