Data Center - Romania

Romania

Revenue in the Data Center market is projected to reach US$224.50m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$133.30m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 7.27%, resulting in a market volume of US$297.20m 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 Romania has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for this growth is the increasing demand for data storage and processing capabilities. With the rise of cloud computing and the digitalization of businesses, there is a growing need for reliable and secure data centers to house and manage the vast amounts of data generated. Customers in Romania are increasingly looking for data centers that can offer high-speed connectivity, scalable infrastructure, and robust security measures to protect their data.

Trends in the market: Another trend driving the growth of the Data Center market in Romania is the increasing adoption of colocation services. Colocation allows businesses to rent space in a data center facility and share the infrastructure with other companies. This trend is driven by the need for cost-effective solutions and the desire for flexibility and scalability. By opting for colocation services, businesses can avoid the high upfront costs of building and maintaining their own data centers while still enjoying the benefits of a secure and reliable infrastructure.

Local special circumstances: Romania has several factors that make it an attractive location for data centers. Firstly, the country has a favorable geographical location, serving as a gateway between Western Europe and the Eastern European and Middle Eastern markets. This strategic position allows data centers in Romania to serve a wide range of customers and benefit from the growing digital economies in the region. Additionally, Romania offers a favorable business environment with a relatively low cost of living and a skilled workforce. This makes it an appealing destination for international companies looking to establish data centers or outsource their IT operations. The government has also implemented policies to support the development of the digital infrastructure, further attracting investment in the Data Center market.

Underlying macroeconomic factors: The growth of the Data Center market in Romania is also influenced by the country's macroeconomic factors. The Romanian economy has been steadily growing in recent years, driven by factors such as foreign direct investment, a skilled labor force, and a favorable business environment. This economic growth has led to increased demand for data center services as businesses expand their operations and digitalize their processes. Furthermore, the increasing internet penetration rate and the growing number of smartphone users in Romania have contributed to the growth of the Data Center market. As more people access the internet and engage in online activities, the demand for data storage and processing capabilities continues to rise. In conclusion, the Data Center market in Romania is experiencing significant growth due to customer preferences for reliable and secure data storage and processing capabilities, the increasing adoption of colocation services, the country's favorable geographic location and business environment, and the underlying macroeconomic factors such as economic growth and increasing internet penetration.

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.