Data Center - Russia

Russia

Revenue in the Data Center market is projected to reach US$4.66bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$3.68bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 2.28%, resulting in a market volume of US$5.10bn 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 Russia has been experiencing significant growth in recent years.

Customer preferences: Customers in Russia are increasingly demanding reliable and secure data center services. They prioritize factors such as uptime, data protection, and compliance with local regulations. As businesses in Russia continue to digitize and expand their online presence, the demand for data center services has been steadily increasing.

Trends in the market: One of the key trends in the Russian Data Center market is the growing adoption of cloud computing. Businesses are realizing the benefits of cloud-based solutions, such as scalability, cost-efficiency, and flexibility. This has led to an increased demand for data center infrastructure to support cloud services. Another trend in the market is the rise of edge computing. With the increasing amount of data generated by Internet of Things (IoT) devices and the need for real-time processing, edge computing has become essential. Data centers located closer to the end-users enable faster data processing and reduce latency, providing a better user experience.

Local special circumstances: Russia has unique geographical challenges due to its vast territory. This has led to the development of data centers in different regions across the country to ensure proximity to end-users and reduce network latency. For example, data centers are being established in major cities like Moscow and St. Petersburg, as well as in other regions to cater to the specific needs of local businesses.

Underlying macroeconomic factors: The Russian government has been actively promoting digital transformation and investing in the development of the IT infrastructure. This includes initiatives to improve internet connectivity, data protection laws, and support for the growth of the digital economy. These efforts have created a favorable environment for the Data Center market in Russia to thrive. In addition, the increasing number of international businesses expanding their operations in Russia has contributed to the growth of the Data Center market. These companies require reliable and secure data center services to support their operations in the country. Overall, the Data Center market in Russia is driven by customer preferences for reliable and secure data center services, the adoption of cloud computing and edge computing, unique local circumstances, and the supportive macroeconomic factors. As businesses continue to digitize and the demand for data-intensive applications grows, the Data Center market in Russia is expected to continue its upward trajectory.

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.