Data Center - Germany

Germany

Revenue in the Data Center market is projected to reach US$15.76bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$9.62bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.24%, resulting in a market volume of US$20.08bn 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 Germany has been experiencing significant growth in recent years.

Customer preferences: Customers in Germany are increasingly demanding high-quality and reliable data center services. They prioritize data security, scalability, and energy efficiency. This has led to a rise in the adoption of colocation services, where businesses can rent space and infrastructure in a data center facility. Additionally, there is a growing demand for cloud services, as businesses seek to leverage the benefits of cloud computing, such as flexibility and cost savings.

Trends in the market: One of the key trends in the Data Center market in Germany is the increasing focus on sustainability. Data centers consume a significant amount of energy, and there is a growing awareness of the environmental impact of these facilities. As a result, data center operators in Germany are investing in energy-efficient technologies and renewable energy sources to reduce their carbon footprint. This trend is driven by both customer demand for sustainable solutions and government regulations promoting green initiatives. Another trend in the market is the consolidation of data center providers. As the demand for data center services continues to grow, larger players are acquiring smaller companies to expand their market share and offer a wider range of services. This consolidation is driven by the need to achieve economies of scale and provide customers with a one-stop solution for their data center needs.

Local special circumstances: Germany has a strong economy and is home to many large multinational corporations. This has created a significant demand for data center services, as businesses require reliable infrastructure to support their operations. The country's central location in Europe also makes it an attractive location for data center providers, as it allows for easy connectivity to other European markets.

Underlying macroeconomic factors: The growth of the Data Center market in Germany is influenced by several macroeconomic factors. The increasing digitization of businesses and the rise of technologies such as artificial intelligence and the Internet of Things are driving the demand for data center services. Additionally, the COVID-19 pandemic has accelerated the adoption of remote working and online services, further increasing the need for robust data center infrastructure. In conclusion, the Data Center market in Germany is experiencing significant growth due to customer preferences for high-quality and reliable services, the adoption of sustainable practices, and the consolidation of data center providers. The country's strong economy, central location in Europe, and the increasing digitization of businesses are underlying macroeconomic factors driving this growth.

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.