Data Center - Lithuania

Lithuania

Revenue in the Data Center market is projected to reach US$425.70m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$375.60m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.91%, resulting in a market volume of US$556.10m 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 Lithuania is experiencing significant growth and development.

Customer preferences: Customers in the Data Center market in Lithuania are increasingly looking for reliable and secure data storage and processing solutions. They prioritize data security and privacy, as well as high-speed connectivity and low latency. Additionally, customers are seeking flexible and scalable solutions that can easily adapt to their changing business needs.

Trends in the market: One of the key trends in the Data Center market in Lithuania is the increasing demand for cloud services. As businesses in Lithuania and worldwide continue to adopt cloud computing, the need for robust and efficient data centers has grown. This trend is driven by the benefits of cloud computing, such as cost savings, scalability, and accessibility. As a result, data center providers in Lithuania are expanding their infrastructure and investing in advanced technologies to meet the growing demand for cloud services. Another trend in the market is the rising importance of green and sustainable data centers. With increasing concerns about environmental impact, customers are looking for data centers that are energy-efficient and environmentally friendly. Data center providers in Lithuania are investing in renewable energy sources and implementing energy-efficient technologies to reduce their carbon footprint. This trend is not only driven by customer preferences but also by government regulations and initiatives promoting sustainable practices in the data center industry.

Local special circumstances: Lithuania has several factors that contribute to the growth of the Data Center market. Firstly, its strategic location in the Baltic region makes it an attractive destination for international businesses looking to establish a presence in Europe. Lithuania offers excellent connectivity to other European countries, as well as Russia and Asia. This geographical advantage positions Lithuania as a gateway for data traffic between different regions. Furthermore, Lithuania has a well-developed IT infrastructure and a highly skilled workforce in the technology sector. The country has a strong focus on digitalization and innovation, which creates a favorable environment for the Data Center market to thrive. The government also supports the development of the IT sector by implementing policies and initiatives that attract foreign investments and promote the growth of local businesses.

Underlying macroeconomic factors: The growth of the Data Center market in Lithuania is also influenced by macroeconomic factors. The increasing digitalization of businesses and the rapid growth of data-intensive technologies, such as artificial intelligence and the Internet of Things, are driving the demand for data storage and processing capabilities. Additionally, the COVID-19 pandemic has accelerated the adoption of remote working and online services, further increasing the need for reliable and secure data centers. Furthermore, Lithuania's competitive cost structure compared to other European countries makes it an attractive destination for data center investments. The country offers competitive electricity prices, favorable tax policies, and a lower cost of living, which contribute to the overall cost-effectiveness of operating data centers in Lithuania. In conclusion, the Data Center market in Lithuania is experiencing significant growth and development due to customer preferences for reliable and secure data storage, the increasing demand for cloud services, the rising importance of green and sustainable data centers, the country's strategic location and well-developed IT infrastructure, and the underlying macroeconomic factors driving the digitalization of businesses.

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.