Data Center - Sweden

Sweden

Revenue in the Data Center market is projected to reach €3.15bn in 2024.
Network Infrastructure dominates the market with a projected market volume of €1.56bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.41%, resulting in a market volume of €4.10bn by 2029.
In global comparison, most revenue will be generated in the United States (€114.20bn 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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Analyst Opinion

The Data Center Market in Sweden has been experiencing rapid growth, driven by factors such as increasing demand for digital services, growing awareness of data security, and the convenience of online infrastructure. This substantial growth rate can be attributed to the country's advanced technology and strong focus on sustainability.

Customer preferences: In Sweden, there is a growing trend towards environmentally sustainable data centers, driven by the country's strong commitment to renewable energy sources. This has led to an increase in demand for green data center solutions, such as energy-efficient cooling systems and renewable power sources. Additionally, with the rise of remote work and virtual meetings, there is a growing demand for data centers that offer reliable and secure connectivity to support these activities. This shift towards eco-friendly and technologically advanced data centers is expected to continue as more businesses prioritize sustainability and digital transformation.

Trends in the market: In Sweden, the Data Center Market is witnessing a rise in demand for green data centers, with companies investing in renewable energy sources and sustainable infrastructure. This trend is driven by the country's commitment to reducing carbon emissions and promoting environmentally responsible practices. Additionally, there is a growing trend towards modular data center solutions, allowing for faster deployment and increased flexibility. These trends are significant as they showcase Sweden's leadership in sustainable data center development and highlight the importance of environmental considerations in the industry. Potential implications for stakeholders include the need to adapt to changing consumer demands and regulatory requirements, as well as opportunities for growth and innovation in the market.

Local special circumstances: In Sweden, the Data Center Market is thriving due to the country's favorable climate and renewable energy sources, making it an ideal location for data centers. Additionally, the Swedish government has implemented strict data privacy laws, making it a trusted and secure location for data storage. This has attracted international companies to invest in the Swedish market, leading to its rapid growth. Furthermore, the country's high-tech infrastructure and skilled workforce contribute to its competitiveness in the global data center market.

Underlying macroeconomic factors: The Data Center Market in Sweden is heavily influenced by macroeconomic factors such as the country's stable economic health and government support for digital infrastructure. Sweden's strong investment in renewable energy sources also makes it an attractive location for data centers, as it allows for more environmentally sustainable operations. Additionally, the country's advanced IT infrastructure and skilled workforce contribute to a competitive market for data center services. However, fluctuations in global economic trends and changes in fiscal policies could impact the market's growth potential in the future.

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.