Data Center - United Kingdom

United Kingdom

Revenue in the Data Center market is projected to reach US$14.72bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$8.69bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 7.09%, resulting in a market volume of US$19.36bn 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 United Kingdom has been experiencing significant growth in recent years. This can be attributed to several factors, including customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Data Center market in United Kingdom have been shifting towards cloud computing and digital transformation. Businesses are increasingly relying on data centers to store and process large amounts of data, as well as to support their digital operations. This has led to a growing demand for data center services, including colocation and managed hosting. Trends in the market also play a role in the development of the Data Center market in United Kingdom. One of the key trends is the increasing adoption of edge computing. Edge computing allows businesses to process data closer to the source, reducing latency and improving the performance of applications and services. This trend has led to the establishment of more data centers in strategic locations across the country, enabling businesses to leverage edge computing capabilities. Another trend in the market is the focus on energy efficiency and sustainability. Data centers consume a significant amount of energy, and there is a growing awareness of the environmental impact of these facilities. As a result, data center operators in United Kingdom are investing in energy-efficient infrastructure and adopting renewable energy sources to power their operations. This not only helps reduce carbon emissions, but also lowers operating costs for data center operators. Local special circumstances also contribute to the development of the Data Center market in United Kingdom. The country has a strong digital infrastructure, including high-speed internet connectivity and a robust telecommunications network. This makes it an attractive location for data center investments, as businesses can easily connect to their customers and partners across the country and beyond. Furthermore, the United Kingdom has a favorable business environment and regulatory framework for data center operations. The government has implemented policies to support the growth of the digital economy, including tax incentives and grants for data center investments. This encourages both domestic and international companies to establish data centers in the country. Underlying macroeconomic factors also play a role in the development of the Data Center market in United Kingdom. The country has a strong and stable economy, with a well-developed financial services sector. This provides a solid foundation for businesses to invest in data center infrastructure and services. Additionally, the United Kingdom is a global hub for technology and innovation, attracting companies from around the world to establish their presence in the country. In conclusion, the Data Center market in United Kingdom is experiencing significant growth due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The shift towards cloud computing and digital transformation, the adoption of edge computing, the focus on energy efficiency and sustainability, the country's strong digital infrastructure and favorable business environment, and its stable economy all contribute to the development of the Data Center market in United Kingdom.

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.