Data Center - United States

United States

Revenue in the Data Center market is projected to reach US$123.20bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$51.96bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 11.48%, resulting in a market volume of US$212.10bn by 2029.
In global comparison, most revenue will be generated in the United States (US$123.20bn 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

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Currency

Analyst Opinion

The Data Center market in United States has been experiencing significant growth and development in recent years.

Customer preferences: Customers in the United States are increasingly demanding data centers that offer high levels of security, reliability, and scalability. They prioritize data centers that can efficiently handle large amounts of data while ensuring minimal downtime. Additionally, there is a growing preference for data centers that are environmentally friendly and energy-efficient.

Trends in the market: One notable trend in the Data Center market in the United States is the increasing adoption of cloud services, driving the demand for data center infrastructure to support cloud computing. This trend is fueled by the need for businesses to store and process data in a cost-effective and efficient manner. Moreover, there is a rising trend towards edge computing, leading to the establishment of smaller data centers closer to end-users to reduce latency and improve overall performance.

Local special circumstances: The United States has a highly competitive Data Center market with a large number of providers offering a wide range of services. This competitive landscape drives innovation and pushes providers to continuously improve their offerings to attract and retain customers. Additionally, the regulatory environment in the United States plays a significant role in shaping the Data Center market, with data privacy and security regulations influencing how data centers are designed and operated.

Underlying macroeconomic factors: The growth of the Data Center market in the United States is also influenced by macroeconomic factors such as GDP growth, technological advancements, and investment trends. As the economy grows, businesses require more data storage and processing capabilities, driving the demand for data centers. Furthermore, advancements in technology such as artificial intelligence, Internet of Things, and big data analytics are increasing the need for robust data center infrastructure to support these technologies. Investment trends in the technology sector also play a crucial role in shaping the Data Center market, with increased funding leading to expansion and development of data center facilities across the country.

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.