Data Center - Worldwide

Worldwide

Revenue in the Data Center market is projected to reach US$416.10bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$239.70bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.45%, resulting in a market volume of US$624.10bn 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

Region comparison

Currency

Analyst Opinion

The data center market worldwide is facing subdued growth, impacted by factors such as slow adoption of digital technologies, lack of health awareness among consumers, and limited convenience offered by online services. This is reflected in the slower growth rates of the sub-markets of servers, storage, and network infrastructure. However, with increasing demand for data storage and processing, the market is expected to see significant growth in the coming years.

Customer preferences: As technology continues to advance, consumers are increasingly looking for environmentally sustainable solutions in their everyday lives. This trend is reflected in the data center market, with a growing demand for energy-efficient and eco-friendly data centers. This shift is driven by the growing awareness and concern for the environment, as well as government regulations promoting green initiatives. Companies are also recognizing the cost savings and positive branding associated with eco-friendly data centers.

Trends in the market: In the Data Center Market, there is a growing trend towards edge computing, with companies looking to move their data closer to end-users for faster and more efficient processing. This trend is driven by the increasing demand for real-time data analysis and the emergence of technologies like 5G and IoT. As a result, data center providers are expanding their offerings to include edge facilities, while also investing in software-defined networking and automation to streamline operations. This trend has significant implications for industry stakeholders, as it allows for improved performance and reduced latency, enabling businesses to better meet the needs of their customers. Additionally, it presents opportunities for new revenue streams and partnerships as the market continues to evolve.

Local special circumstances: In the Data Center Market, the local factors play a crucial role in shaping the market dynamics. For instance, in China, the market is driven by the government's initiatives for cloud computing and big data, as well as the increasing demand for data storage from the booming e-commerce sector. In the United States, the market is influenced by the strict regulatory environment and the high adoption of advanced technologies such as AI and IoT. These factors contribute to a highly competitive and innovative market.

Underlying macroeconomic factors: The Data Center Market is heavily influenced by macroeconomic factors such as technological advancements, government policies, and infrastructure investments. Countries with progressive regulatory environments and robust investments in data center infrastructure are experiencing rapid market growth, while regions with regulatory barriers and limited funding are facing slower growth. Furthermore, the rising demand for data storage and processing capabilities, driven by the global increase in data generation and adoption of cloud computing, is fueling the growth of the Data Center Market. This trend is expected to continue as the world becomes increasingly reliant on digital technologies.

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.