Enjoy complimentary customisation on priority with our Enterprise License!
The Europe data center market size is estimated to grow at a CAGR of 21.05% between 2022 and 2027. The market size is forecast to increase by USD 171.29 billion. The growth of the market depends on several factors, including the imposition of data protection regulation, the increasing adoption of big data analytics and the rising data center construction.
This data center market in Europe report extensively covers market segmentation by end-user (medium and small enterprises and large enterprises) and component (IT infrastructure, power management, cooling solutions, general construction, and others). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, View Report Sample
Rising data center construction is notably driving the market growth, although factors such as cyber security issues impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the market growth is the rising data center construction. The need for constructing more data center facilities has increased due to the emergence of technologies such as cloud computing and big data analytics. Additionally, the popularity of social media and the IoT has fuelled the demand for data centers to store and process information accurately with fast retrieval times.
The key components of .data centers include infrastructure such as storage and servers, along with networks that connect the physical infrastructure and web-based interfaces. Thus, enterprises are looking for modern design techniques to develop these facilities to help users access more scalable, reliable, and efficient storage solutions. The above factors can significantly drive the data center market growth in Europe.
A key factor shaping the data center market growth in Europe is the rising adoption of high-performance computing (HPC) across enterprises. HPC can be defined as a combination of processes for delivering higher and more efficient computing performance. It includes a cluster of processors with 16-64 nodes that use algorithms, networks, and simulated environments for computers, ranging from small cluster computers to large supercomputers.
Due to the increasing need for product innovations and economic competitiveness, there is significant market growth for HPC in Europe. The applications of HPC include aerospace and defense companies, governments, laboratories, and research centers. Thus, this trend is expected to continue the data center market growth in Europe.
Cybersecurity issues are one of the key challenges hindering the data center market growth in Europe. As data centers have become increasingly lucrative targets for cybercriminals. As a result of the growth of cloud computing and the growing virtualization of businesses, there is a significant risk on data centers which can have devastating effects, including reputational harm and monetary losses.
For instance, a ransomware attack against data center operator CyrusOne in 2020 led to a loss of revenues and reputational harm. Thus, the risk of cyberattacks on data centers in Europe is a serious issue that significantly poses as a threat to the data center market during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Data Center Market in Europe Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Amazon.com Inc: The company offers data centers that provide shared access to applications and data using a complex network to store data infrastructure.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the medium and small enterprises segment will be significant during the forecast period. Data center services are gaining traction in medium and small enterprises in Europe due to the increasing importance of data and the digital revolution. Larger companies may have the means to create and run their own data centers, but small and medium-sized enterprises frequently lack the expertise, funding, or scale to do so.
Get a glance at the market contribution of various segments View the PDF Sample
The medium and small enterprises segment was valued at USD 28.09 billion in 2017 and continue to grow by 2021. Due to the increasing importance of data and the digital revolution, data center services are gaining traction in medium and small enterprises in Europe. As small and medium-sized enterprises frequently lack the expertise, funding, or scale to run their own data centers, they aim for the services of independent data center operators to meet their requirements for IT infrastructure. Thus, with providers offering a variety of solutions catered to their particular needs, such as colocation, managed hosting, and cloud services, the market for data center services for small and medium-sized enterprises in Europe is expected to expand during the forecasting period.
The data center market in Europe report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the data center market in Europe as a part of the global internet services and infrastructure market within the global information technology (IT) services market. The super parent global IT services market cover companies offering IT consulting and system integration services, application services, electronic data processing services, business process outsourcing services, infrastructure services, and internet services. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Data Center Market In Europe Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 21.05% |
Market growth 2023-2027 |
USD 171.29 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
18.85 |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alphabet Inc., Amazon.com Inc., Apple Inc., Colt Technology Services Group Ltd., Digital Realty Trust Inc., Equinix Inc., Global Switch Ltd., GTT Communications Inc., International Business Machines Corp., Microsoft Corp., NTT Communications Corp., Pulsant Ltd., QTS Realty Trust LLC, SITRONICS JSC, Verizon Communications Inc., Cogeco Communications Inc., Data4 Group, Deutsche Telekom AG, and Meta Platforms Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.