Data Center - North America

North America

Revenue in the Data Center market is projected to reach US$110.00bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$49.19bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 5.97%, resulting in a market volume of US$138.70bn 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.

For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

The Data Center market in North America is experiencing significant growth and development.

Customer preferences: Customers in North America are increasingly demanding data center services to support their growing digital infrastructure needs. They are seeking data centers that offer high reliability, scalability, and security to ensure uninterrupted operations and protection of their data. Additionally, customers are looking for data centers that can provide low-latency connectivity and high-speed data transfer capabilities to support their applications and services.

Trends in the market: One of the key trends in the North American Data Center market is the increasing adoption of cloud computing. Many businesses are migrating their IT infrastructure to the cloud to reduce costs, improve flexibility, and enhance scalability. This trend is driving the demand for data center services that can support cloud-based applications and services. Another trend in the market is the growing demand for edge computing. With the proliferation of Internet of Things (IoT) devices and the need for real-time data processing, businesses are looking for data centers that can provide low-latency computing capabilities at the edge of the network. This allows for faster data processing and analysis, enabling businesses to make real-time decisions and deliver better user experiences. Furthermore, there is a rising focus on sustainability and energy efficiency in the Data Center market in North America. Data centers consume a significant amount of energy, and there is a growing concern about the environmental impact of their operations. As a result, data center operators are investing in energy-efficient technologies and adopting renewable energy sources to reduce their carbon footprint.

Local special circumstances: North America is home to many technology giants and major cloud service providers. These companies require large-scale data centers to support their operations and cater to the increasing demand for their services. This has led to the construction of mega data centers in the region, which offer high capacity and advanced infrastructure to meet the needs of these customers.

Underlying macroeconomic factors: The strong economic growth in North America, coupled with the increasing digitization of businesses, is driving the growth of the Data Center market. Businesses are investing in digital transformation initiatives, which require robust data center infrastructure to support their operations. Additionally, the increasing adoption of cloud computing and the growing demand for edge computing are contributing to the expansion of the Data Center market in North America. In conclusion, the Data Center market in North America is experiencing significant growth and development due to customer preferences for reliability, scalability, and security. The adoption of cloud computing and the demand for edge computing are driving the market trends. The region's focus on sustainability and energy efficiency is also shaping the market. The strong economic growth and the increasing digitization of businesses are underlying macroeconomic factors contributing to the growth of the Data Center market in North America.

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.