Data Center - United States

United States

Revenue in the Data Center market is projected to reach US$99.16bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$42.87bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 5.88%, resulting in a market volume of US$124.60bn 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

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Analyst Opinion

The Data Center market in United States is experiencing significant growth and development.

Customer preferences: Customers in the United States have a strong preference for reliable and efficient data center services. They are increasingly demanding high-quality infrastructure that can support their growing data storage and processing needs. Additionally, customers are seeking data centers that can provide scalable solutions to accommodate future growth. Security is also a top priority for customers, as they want to ensure that their data is protected from cyber threats and physical damage.

Trends in the market: One of the key trends in the Data Center market in the United States is the increasing adoption of cloud computing. As businesses continue to migrate their operations to the cloud, the demand for data center services has grown significantly. This trend is driven by the need for flexible and scalable infrastructure, as well as the cost savings associated with cloud computing. Another trend in the market is the rise of edge computing. With the proliferation of Internet of Things (IoT) devices and the need for real-time data processing, edge computing has become increasingly important. Edge data centers, which are located closer to the end-users, enable faster data processing and reduce latency. This trend is expected to continue as the number of IoT devices continues to grow.

Local special circumstances: The United States has a highly developed and mature data center market. This is due to several factors, including the country's advanced telecommunications infrastructure, strong technology sector, and favorable business environment. The presence of major technology companies in the United States, such as Amazon, Microsoft, and Google, has also contributed to the growth of the data center market. These companies have invested heavily in building their own data centers to support their cloud services.

Underlying macroeconomic factors: The growth of the Data Center market in the United States is also influenced by macroeconomic factors. The country's strong economy and stable political environment have attracted both domestic and international investments in the data center industry. Additionally, the increasing digitization of businesses and the growing reliance on data-driven decision-making have created a strong demand for data center services. In conclusion, the Data Center market in the United States is experiencing significant growth and development. Customer preferences for reliable and efficient data center services, the increasing adoption of cloud computing, and the rise of edge computing are driving the market. The country's advanced telecommunications infrastructure, strong technology sector, and favorable business environment are also contributing to the growth of the market.

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.