Data Center - Europe

Europe

Revenue in the Data Center market is projected to reach US$85.21bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$54.96bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.37%, resulting in a market volume of US$109.10bn 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 Europe is experiencing significant growth and development.

Customer preferences: Customers in Europe are increasingly demanding high-quality and reliable data center services. They prioritize factors such as data security, scalability, and energy efficiency. As the volume of data being generated and processed continues to increase, customers are also looking for data centers that can handle large amounts of data and provide fast and reliable connectivity.

Trends in the market: One major trend in the European Data Center market is the increasing adoption of cloud computing. Many businesses are moving their IT infrastructure to the cloud to benefit from its scalability and cost-effectiveness. This has led to a growing demand for data centers that can support cloud services and provide the necessary infrastructure. Another trend is the rise of edge computing. With the proliferation of Internet of Things (IoT) devices and the need for real-time data processing, there is a growing demand for data centers that are located closer to the end-users. Edge data centers can provide low-latency connections and faster processing, which is particularly important for applications such as autonomous vehicles and smart cities. The market is also seeing a shift towards more sustainable and energy-efficient data centers. With increasing concerns about climate change and energy consumption, customers are looking for data centers that prioritize energy efficiency and utilize renewable energy sources. This trend is driven by both customer demand and regulatory requirements.

Local special circumstances: The Data Center market in Europe is influenced by the region's diverse regulatory environment. Each country has its own set of regulations and standards for data protection and privacy, which can impact the location and operation of data centers. This has led to the development of data centers in countries with favorable regulatory environments, such as the Netherlands and Ireland.

Underlying macroeconomic factors: The growth of the Data Center market in Europe is supported by several macroeconomic factors. The region has a strong digital economy, with a high level of internet penetration and a large number of tech-savvy consumers. This creates a favorable environment for data center services. Furthermore, Europe is home to many multinational companies and international organizations, which require robust data center infrastructure to support their operations. This drives the demand for data center services in the region. In addition, the European Union has been actively promoting digital transformation and innovation through initiatives such as the Digital Single Market strategy. This has created a supportive regulatory framework and funding opportunities for the development of data center infrastructure. Overall, the Data Center market in Europe is experiencing growth and development driven by customer preferences for high-quality services, trends such as cloud computing and edge computing, local special circumstances related to regulatory environment, and underlying macroeconomic factors such as the region's strong digital economy and supportive regulatory framework.

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.