Data Center - Estonia

Estonia

Revenue in the Data Center market is projected to reach US$69.06m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$46.03m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.98%, resulting in a market volume of US$90.45m 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

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Analyst Opinion

The Data Center market in Estonia has been experiencing significant growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in the Data Center market in Estonia have shown a strong preference for secure and reliable data storage solutions. With the increasing digitization of businesses and the growing importance of data, companies are seeking data centers that can provide high levels of security, redundancy, and connectivity. Additionally, customers are looking for data centers that can offer scalable solutions to accommodate their future growth and expansion needs.

Trends in the market: One of the key trends in the Data Center market in Estonia is the increasing demand for cloud services. As businesses continue to adopt cloud computing and storage solutions, the need for robust data centers to support these services has grown. Data centers in Estonia are strategically positioned to cater to this demand, offering reliable and cost-effective cloud services to both local and international customers. Another trend in the market is the focus on sustainability and energy efficiency. Data centers are known for their high energy consumption, and there is a growing emphasis on reducing the environmental impact of these facilities. Data centers in Estonia are adopting innovative technologies and practices to improve energy efficiency and reduce carbon emissions. This trend aligns with the global push towards sustainable development and green initiatives.

Local special circumstances: Estonia has a favorable business environment and strong digital infrastructure, which has attracted international companies to establish their presence in the country. The Estonian government has also implemented policies to promote the development of the digital economy, including the establishment of data centers. This has created a conducive environment for the growth of the Data Center market in Estonia.

Underlying macroeconomic factors: The growth of the Data Center market in Estonia is also influenced by underlying macroeconomic factors. Estonia has a stable economy and a high level of digitalization, making it an attractive location for businesses looking to establish data centers. Additionally, the country has a skilled workforce and a favorable regulatory framework, which further supports the growth of the Data Center market. In conclusion, the Data Center market in Estonia is experiencing significant growth due to customer preferences for secure and reliable data storage solutions, the increasing demand for cloud services, the focus on sustainability and energy efficiency, the favorable business environment and digital infrastructure in the country, and the underlying macroeconomic factors. These factors have contributed to the development of a thriving Data Center market in Estonia, attracting both local and international customers.

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.