Data Center - Norway

Norway

Revenue in the Data Center market is projected to reach US$1.40bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$0.84bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 5.89%, resulting in a market volume of US$1.76bn 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 Norway has been experiencing significant growth in recent years.

Customer preferences: Customers in the Data Center market in Norway are increasingly looking for reliable and secure data storage solutions. With the growing importance of data and the increasing number of cyber threats, businesses are prioritizing the protection of their data. This has led to a rising demand for data centers that offer state-of-the-art security measures, such as advanced fire suppression systems, biometric access controls, and 24/7 surveillance. Additionally, customers are also seeking data centers that are energy-efficient and environmentally friendly, as sustainability becomes a key consideration for businesses.

Trends in the market: One of the key trends in the Data Center market in Norway is the increasing demand for colocation services. Colocation allows businesses to house their IT infrastructure in a third-party data center, providing them with the benefits of scalability, cost-efficiency, and enhanced security. This trend is driven by the need for businesses to focus on their core competencies while relying on specialized data center providers to manage their IT infrastructure. Another trend in the market is the adoption of cloud computing. Cloud services offer businesses the flexibility to scale their IT resources as needed, without the need for significant upfront investments in hardware and infrastructure. This has led to a growing demand for data centers that can support cloud-based applications and services.

Local special circumstances: Norway's abundance of renewable energy sources, such as hydropower and wind power, has positioned the country as an attractive location for data center development. Data centers require a significant amount of electricity to power and cool their servers, and Norway's renewable energy infrastructure allows for cost-effective and sustainable operations. This has led to an increase in investments in data centers in Norway, as companies seek to take advantage of the country's green energy capabilities.

Underlying macroeconomic factors: The Data Center market in Norway is also influenced by macroeconomic factors. Norway has a stable economy and a high standard of living, which attracts businesses to establish their operations in the country. The government's support for the digital economy and its investment in infrastructure development further contribute to the growth of the Data Center market. Additionally, Norway's strategic location in Europe, with its excellent connectivity and low latency, makes it an ideal location for businesses that require fast and reliable access to European markets. In conclusion, the Data Center market in Norway is experiencing growth due to customer preferences for secure and reliable data storage solutions, the increasing demand for colocation and cloud services, the country's renewable energy capabilities, and underlying macroeconomic factors such as a stable economy and government support. As businesses continue to prioritize data protection and scalability, the Data Center market in Norway is expected to further expand in the coming years.

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.