Data Center - Italy

Italy

Revenue in the Data Center market is projected to reach US$5.83bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$4.34bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 5.78%, resulting in a market volume of US$7.30bn 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 Italy is experiencing significant growth and development in recent years.

Customer preferences: Customers in Italy are increasingly demanding reliable and efficient data center solutions to meet their growing digital needs. They prioritize data security and privacy, as well as high availability and low latency. Additionally, customers are looking for scalable and flexible data center solutions that can accommodate their expanding business requirements.

Trends in the market: One of the key trends in the Italian Data Center market is the increasing adoption of cloud services. Many businesses in Italy are transitioning their IT infrastructure to the cloud to leverage the benefits of scalability, cost-efficiency, and enhanced data security. This trend is driving the demand for data centers that can support cloud-based services and provide robust connectivity. Another trend in the market is the rising importance 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 located closer to the end-users. Edge data centers enable faster data processing and reduced latency, which is particularly important for applications such as autonomous vehicles, smart cities, and industrial automation.

Local special circumstances: Italy has a diverse and fragmented data center market, with both local and international providers operating in the country. This diversity allows customers to choose from a wide range of data center options, including colocation, managed services, and hyperscale facilities. The presence of both local and international providers also fosters competition, driving innovation and driving down prices for customers.

Underlying macroeconomic factors: Italy's digital transformation efforts and the increasing adoption of cloud services are major drivers of the Data Center market. The Italian government has been actively promoting digitalization and investing in infrastructure to support the growth of the digital economy. This includes initiatives to improve broadband connectivity, develop data center clusters, and attract foreign investments. Furthermore, the COVID-19 pandemic has accelerated the digitalization process in Italy, with businesses and individuals relying more on digital services and remote working. This increased reliance on digital infrastructure has further fueled the demand for data centers and related services. In conclusion, the Data Center market in Italy is witnessing strong growth due to customer preferences for reliable and efficient data center solutions, the increasing adoption of cloud services, and the rising importance of edge computing. The diverse and competitive nature of the market, along with government support and the impact of the COVID-19 pandemic, are key factors driving the development of the Data Center market in Italy.

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.