Data Center - Latvia

Latvia

Revenue in the Data Center market is projected to reach US$68.78m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$43.26m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.81%, resulting in a market volume of US$89.53m 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 Latvia is experiencing significant growth and development, driven by various factors such as customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Latvia, customers are increasingly demanding reliable and secure data storage and management solutions. With the rapid digitization of businesses and the growing importance of data-driven decision-making, companies are seeking Data Center services that can provide high levels of uptime, scalability, and data security. This has led to a surge in demand for Data Centers in Latvia, as businesses recognize the need for robust infrastructure to support their operations.

Trends in the market: One of the key trends in the Data Center market in Latvia is the adoption of cloud computing services. Businesses are increasingly moving their data and applications to the cloud, which requires reliable and secure Data Centers to host and manage these services. This trend is driven by the numerous benefits of cloud computing, including cost savings, scalability, and flexibility. As a result, Data Centers in Latvia are expanding their capacity to meet the growing demand for cloud services. Another trend in the market is the focus on energy efficiency and 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 Latvia are investing in energy-efficient infrastructure and implementing sustainable practices to reduce their carbon footprint. This trend is not only driven by environmental concerns but also by cost savings, as energy-efficient Data Centers can significantly reduce operating expenses.

Local special circumstances: Latvia's strategic location in the Baltic region makes it an attractive destination for Data Center investments. The country offers excellent connectivity to both Western and Eastern Europe, making it a gateway for international data traffic. Furthermore, Latvia has a stable political and economic environment, which provides a favorable business climate for Data Center operators. These factors, combined with the country's skilled workforce and competitive operating costs, make Latvia an ideal location for Data Center investments.

Underlying macroeconomic factors: The growth of the Data Center market in Latvia is also influenced by underlying macroeconomic factors. The country has experienced steady economic growth in recent years, which has led to an increase in business activities and the need for reliable data storage and management solutions. Additionally, the government of Latvia has implemented policies to attract foreign investments in the ICT sector, including Data Centers. These policies, coupled with favorable tax incentives, have further contributed to the development of the Data Center market in Latvia. In conclusion, the Data Center market in Latvia is growing rapidly due to customer preferences for reliable and secure data storage solutions, trends in the market such as the adoption of cloud computing and focus on energy efficiency, local special circumstances including Latvia's strategic location and favorable business climate, and underlying macroeconomic factors such as steady economic growth and government policies to attract foreign investments.

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.