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

Region comparison

Currency

Analyst Opinion

The Data Center Market in the United States is experiencing minimal growth, influenced by factors such as increasing adoption of digital technologies, rising demand for online services, and growing awareness of data security. These sub-markets of Servers, Storage, and Network Infrastructure play a crucial role in shaping the overall market growth.

Customer preferences: As technology continues to advance, consumers in the United States are becoming more reliant on digital solutions for their health and well-being. This has led to a rise in demand for wearable devices and health tracking apps, as well as online doctor consultations. With the increasing prevalence of chronic conditions, there is a growing need for remote monitoring and management, driving the shift towards digital treatment and care options.

Trends in the market: In the United States, the Data Center Market is experiencing a shift towards cloud-based services, with more businesses opting for remote data storage and management solutions. This trend is driven by the increasing demand for efficient and cost-effective data storage solutions, as well as the need for remote accessibility and scalability. Additionally, the rise of edge computing and the Internet of Things (IoT) has led to a surge in the demand for data centers, as these technologies require low latency and high bandwidth. This trend is expected to continue in the coming years, with potential implications for industry stakeholders such as data center providers, cloud service providers, and businesses relying on data-driven operations.

Local special circumstances: In the United States, the Data Center Market is heavily influenced by the country's advanced technological infrastructure and regulatory policies. The high demand for data storage and processing services is driven by the country's large and diverse economy, as well as its position as a global leader in industries such as finance, healthcare, and e-commerce. Additionally, the country's strict data privacy laws, such as the General Data Protection Regulation (GDPR), have a significant impact on the market, as companies must comply with these regulations to operate in the country. Furthermore, the United States' vast geographic size and diverse climate conditions also play a role in the development and location of data centers across the country. This combination of factors makes the United States a highly competitive and dynamic market for data centers.

Underlying macroeconomic factors: The Data Center Market in the United States is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. The US has a robust economy and a stable political environment, making it a favorable market for data center investments. In addition, the increasing adoption of cloud computing, big data analytics, and artificial intelligence is driving the demand for data centers in the country. Moreover, the growing awareness about the importance of data security and the need for data storage and management is also contributing to the growth of the data center market in the US. These factors, along with the country's strong investment in digital infrastructure, are expected to continue driving the growth of the data center market in the United States.

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.