Data Center - Sweden

Sweden

Revenue in the Data Center market is projected to reach US$2.46bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$1.23bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 7.29%, resulting in a market volume of US$3.26bn 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 Sweden has been experiencing significant growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in the Data Center market in Sweden have shown a strong preference for reliable and secure data storage and management solutions. With the increasing digitization of businesses and the growing importance of data-driven decision making, organizations are seeking data centers that can provide high levels of uptime, robust security measures, and scalable infrastructure. Additionally, customers are also placing greater emphasis on energy efficiency and sustainability, with a growing demand for data centers that are powered by renewable energy sources.

Trends in the market: One of the key trends in the Data Center market in Sweden is the increasing adoption of cloud computing services. As businesses continue to migrate their IT infrastructure to the cloud, there is a growing need for data centers that can support the storage and processing requirements of cloud-based applications and services. This trend is further fueled by the rise of remote working and the need for flexible and scalable IT solutions. Another trend in the market is the emergence of edge computing. With the proliferation of Internet of Things (IoT) devices and the need for real-time data processing, there is a growing demand for data centers that are located closer to the end-users. This allows for faster data transfer and reduced latency, enabling applications that require immediate response times.

Local special circumstances: Sweden has several unique factors that contribute to the development of its Data Center market. One of the key factors is the country's favorable climate for data center operations. Sweden's cool climate allows for natural cooling of data centers, reducing the need for energy-intensive cooling systems. This not only improves energy efficiency but also lowers operational costs for data center operators. Furthermore, Sweden has a reliable and well-developed digital infrastructure, with high-speed internet connectivity and a robust telecommunications network. This infrastructure provides a solid foundation for the establishment and operation of data centers, attracting both domestic and international players to the market.

Underlying macroeconomic factors: Sweden's strong economy and stable political environment have also played a significant role in the growth of the Data Center market. The country has a highly skilled workforce and a favorable business climate, making it an attractive location for data center investments. Additionally, Sweden has a strong commitment to sustainability and renewable energy, which aligns with the increasing demand for green data center solutions. In conclusion, the Data Center market in Sweden is experiencing growth due to customer preferences for reliable and secure data storage, the adoption of cloud computing services, the emergence of edge computing, local special circumstances such as the favorable climate and digital infrastructure, and underlying macroeconomic factors including a strong economy and commitment to sustainability. These factors are driving the development of the Data Center market in Sweden and positioning the country as a key player in the global data center industry.

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.