Germany Data Center Market to be Dominated by Information Technology & Telecom Sector through 2028
Adoption of big data and IoT
technologies are the major factors driving the growth of Germany data
center market during the forecast period.
According to TechSci Research
report, “Germany Data Center Market - By Region, Competition, Forecast and
Opportunities, 2028”, the Germany data center market is expected to
register robust growth during the forecast period, 2024-2028 due to an increase
in the adoption of high-end cloud computing by businesses. Additionally, the
expansion of high-end cloud computing in businesses throughout the globe in
developing countries fuels the expansion of the data center market during the
anticipated time.
Additionally, it is anticipated
that increased investments in data center applications will fuel market
expansion. In Germany, where the business is building additional data centers
at existing sites in Frankfurt, Berlin, and Bonn, NTT announced its development
plans in June 2021. The business announced that it was increasing its presence
in Germany by more than 40% and adding more than 30,000 square meters of IT
space across current facilities in the nation. In addition to opening two new
buildings at the Frankfurt 4 complex in 2021, the business also intends to
create a build-to-suit data center at its Rhine-Ruhr campus in Bonn.
A rising number of companies,
including many small and medium-sized firms (SMEs) in Germany, are accepting,
and implementing cloud services. Large data centers run by hyper-scale
providers like AWS, Microsoft, and Google have multiplied dramatically in the
area. Additionally, Google said in September 2021 that it will invest more than
USD 1 billion over the following ten years to create a new Berlin cloud area
and extend its Frankfurt data center footprint.
In addition, China Telecom
Global (CTG), Daily-Tech teamed with Global Switch to open the Global Switch
Frankfurt North data center in Germany in response to the rising demand for
colocation services in Europe. The cooperation, which enables the companies to
continue to promote their digital economies in Germany, is unequivocal proof of
the expansion of Asian corporations expanding into Germany. Due to the
increasing number of data centers, a large increase in the demand for DCIM
(Data Center Infrastructure Management Software) is also anticipated.
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Germany data center market can
be segmented by solution, enterprise size, end user, and region. Based on
solution, the market is divided into IT infrastructure, general infrastructure,
electrical infrastructure, mechanical infrastructure, and others. Based on
enterprise size, the market is segmented into large enterprises and small &
medium enterprises (SMEs). Based on end-user industry, the market is divided
into information technology & telecom, government, BFSI, healthcare, and
others. Based on region, market is divided into North-West, North-East, South
-West, and South-East.
Based on solution, the IT
Infrastructure has showcased the lucrative market growth in 2022, due to the
increased need for digital infrastructure projects in sectors like government,
telecommunications, energy, smart agriculture, and banking/fintech.
Based on end-user industry,
information technology & telecom dominated the market in 2022 and is
expected to do so during the forecast period. The telecom and IT industries
store and process a staggering quantity of data. Data centers in Germany have
grown more popular because of the growing uptake of mobile data and
subscription services. The demand in the nation is anticipated to increase
rapidly with the introduction of 5G and Cloud. Additionally, the development of
infrastructure is a crucial success factor that promotes and supports economic
progress. IT and telecom companies are making significant investments in the
nation.
For instance, the German state
of Saxony-Anhalt's subsidiary T-Systems of Deutsche Telekom increased the size
of its data center in Biere, a village nearby Magdeburg. The facility, which
caters to enterprise and government clients, has 11,000 square metres of
technical space, enough to house 100,000 servers, and it has the capacity to
expand by another 40,000 square metres if the business so chooses.
Additionally, as of January 2021, there were 78.81 million internet subscribers
in Germany. Between 2020 and 2021, there was a one million (+1.3%) increase in
the number of internet users in the nation. The country had a 94% internet
penetration rate as of the latest estimates from the European Commission.
Major companies operating in the
Germany data center market are:
- NDC Data Centers GmbH
- Arista Networks
- Broadcom Inc.
- Cisco Systems Inc.
- Dell Technologies Inc.
- Hewlett Packard Enterprise
- Huawei technologies co. Ltd
- IBM Corporation
- Datacenter One GmbH
- Cyxtera Technologies inc.
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“Big data and IoT technology
will increase investments in the data center market as businesses in Germany
see significant data generation across sectors like IT and telecom, BFSI,
healthcare, and government and defence. Some of the main factors influencing
the demand for data centers in the country are the expanding use of cloud
computing, increased penetration of foreign cloud vendors, government laws for
local data protection, and growing investment by domestic businesses” said Mr.
Karan Chechi, Research Director with TechSci Research, a research-based global
management consulting firm.
“Germany Data Center Market
Segmented By Solution (IT Infrastructure, General Infrastructure, Electrical
Infrastructure, Mechanical Infrastructure, Others), By Enterprise Size (Large
Enterprises and Small & Medium Enterprises (SMEs)), By End-User
(Information Technology & Telecom, Government, BFSI, Healthcare,
Others), By Region, Competition, Forecast and Opportunities, 2028F”, has
evaluated the future growth potential of Germany data center market and
provides statistics & information on market size, structure, and future
market growth. The report intends to provide cutting-edge market intelligence
and help decision-makers take sound investment decisions. Besides, the report
also identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in the Germany data center market.
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