Data Center - Worldwide

Worldwide

Revenue in the Data Center market is projected to reach US$340.20bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$197.80bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.56%, resulting in a market volume of US$438.70bn 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 Worldwide is experiencing significant growth and development due to various factors. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors are all contributing to the expansion of the Data Center market.

Customer preferences: Customers are increasingly demanding reliable and efficient data storage and processing solutions. With the rapid growth of digitalization, businesses and individuals alike are generating massive amounts of data that need to be securely stored and easily accessible. This has led to an increased demand for Data Centers that can provide scalable and flexible solutions to meet these evolving customer needs.

Trends in the market: One of the key trends in the Data Center market is the shift towards cloud computing. Many businesses are opting to store their data in the cloud rather than investing in on-premises infrastructure. This trend is driven by the cost savings, scalability, and flexibility offered by cloud-based solutions. As a result, there is a growing demand for Data Centers that can support cloud computing services. Another trend in the market is the increasing adoption of edge computing. Edge computing involves processing data closer to the source, rather than sending it to a centralized Data Center. This trend is driven by the need for real-time data processing and reduced latency, particularly in applications such as autonomous vehicles, IoT devices, and smart cities. As a result, there is a growing demand for smaller, decentralized Data Centers located closer to the end-users.

Local special circumstances: In addition to global trends, there are also local special circumstances that are shaping the Data Center market in different regions. For example, in countries with strict data sovereignty regulations, such as China and Russia, there is a growing demand for Data Centers that can ensure the data is stored and processed within the country's borders. This has led to the establishment of localized Data Centers that cater to these specific requirements.

Underlying macroeconomic factors: The growth of the Data Center market is also influenced by underlying macroeconomic factors. For example, countries with a strong digital economy and a high level of internet penetration tend to have a higher demand for Data Centers. Additionally, favorable government policies and investment in digital infrastructure can also drive the growth of the Data Center market. In conclusion, the Data Center market in Worldwide is experiencing significant growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The increasing demand for reliable and efficient data storage and processing solutions, the shift towards cloud computing and edge computing, and local regulations and macroeconomic factors are all contributing to the expansion of the Data Center 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.