Data Center - Germany

Germany

Revenue in the Data Center market is projected to reach US$18.70bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$11.20bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.22%, resulting in a market volume of US$25.29bn 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 Germany is experiencing minimal growth, impacted by factors such as increasing demand for servers, storage, and network infrastructure, as well as rising awareness of the benefits of digital technologies. This slow growth can also be attributed to competition and economic factors.

Customer preferences: As Germany continues to invest in renewable energy and sustainability efforts, consumers are becoming more environmentally conscious and are seeking out data centers that prioritize green energy sources. Additionally, with the rise of remote work and virtual events, there is a growing demand for data centers that offer reliable and high-speed connectivity. This shift towards sustainable and efficient data centers is also driven by the need for increased cybersecurity measures to protect sensitive data.

Trends in the market: In Germany, the Data Center Market is experiencing a surge in demand for cloud services, driven by the increasing adoption of digital transformation strategies by businesses. This trend is expected to continue as organizations seek to optimize their IT infrastructure and reduce costs. Additionally, there is a growing focus on sustainability, with data center operators investing in renewable energy sources and implementing energy-efficient technologies. This trend not only aligns with Germany's ambitious climate goals but also presents potential cost savings for industry stakeholders. Moreover, the rise of edge computing and the Internet of Things (IoT) is also impacting the data center market in Germany, with the need for low-latency and high-performance computing driving the demand for edge data centers. As a result, data center providers are expanding their services to include edge capabilities, positioning themselves for future growth in the market.

Local special circumstances: In Germany, the Data Center Market is heavily influenced by the country's strict data protection laws and regulations. This has resulted in a highly secure and reliable data center infrastructure, attracting international companies to host their data in Germany. Additionally, the country's stable political and economic climate, along with its central location in Europe, make it an ideal location for data centers. Furthermore, Germany's strong emphasis on renewable energy has led to the development of environmentally friendly data centers, aligning with the country's sustainability goals. These factors have contributed to the growth and success of the Data Center Market in Germany.

Underlying macroeconomic factors: The Data Center Market in Germany is heavily influenced by macroeconomic factors such as technological advancements, government support, and investment in digital infrastructure. Germany has a strong economy and is a leader in technology, making it an attractive market for data center companies. Additionally, the country's strict data privacy laws and regulations provide a secure environment for data storage and processing, further driving market growth. The increasing demand for cloud computing and data analytics services, along with the growing need for data storage and management, are also contributing to the expansion of the data center market in Germany.

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.