Germany Data Center Market Size, Share, and COVID-19 Impact Analysis, By Component (Hardware, Software, and Services), By Type (On-premise, Hyperscale, HPC, Colocation, and Edge), By End-use (Cloud Service Provider, Technology Provider, Telecom, Healthcare, BFSI, Retail & E-commerce, Energy, and Others), and Germany Data Center Market Insights, Industry Trend, Forecasts to 2033

Germany Data Center Market Insights Forecasts to 2033

• The Germany Data Center Market Size  is growing at a CAGR of 6.55% from 2023 to 2033
• The Germany Data Center Market Size is expected to hold a significant share by 2033

The Germany Data Center Market Size is anticipated to hold a significant share by 2033, Growing at a CAGR of 6.55% from 2023 to 2033. The increasing adoption of cloud computing, deeper internet penetration, increase in digital data traffic, public cloud services, and growth of IoT are driving the data center market in the Germany.     

Market Overview

Data center market is the industry involved in providing and managing the physical infrastructure (servers, storage, networking) necessary for hosting and operating IT systems, including services like hosting, colocation, and managed data center solutions. Data center is a physical facility that stores and shares applications and data. The design is based on a network of computing and storage resources, enabling the delivery of shared applications and data. There is continuous innovation in designs, operational practices and technologies like cloud computing and edge computing in order to meet the evolving demand across industries. The mounting demand for computational power with the incorporation of generative AI technology in the data centers is driving the market development. Furthermore, the increasing adoption of hybrid and multi-cloud strategies for leveraging the benefits of public cloud services, private cloud environments, and on-premise infrastructure is fueling market growth.

Report Coverage

This research report categorizes the market for the Germany data center market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Germany data center market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Germany data center market.

Driving Factors

The increasing adoption of cloud computing is propelling the data center market. According to a survey, 97 per cent of German companies with at least 50 employees rely on cloud computing. Hybrid models are used in which public and private cloud services are used in parallel. The growth of the Internet of Things (IoT) driving the development of highly efficient and sustainable data centers is driving the market growth. The increasing demand for robust network traffic analysis solutions for providing real-time visibility into network activities is also responsible for promoting market growth.  

Restraining Factors

The high costs required for managing and maintaining data centers are limiting its adoption particularly among small businesses that are challenging the market. Further, the cybersecurity threats and complexity in infrastructure management are restraining the market growth.

Market Segmentation

The Germany data center market share is classified into component, type, and end-use.

• The hardware segment dominates the market with the largest revenue share in 2023 and is expected to grow at a significant CAGR growth during the projected timeframe.

Based on the component, the German data center market is divided into hardware, software, and services. Among these, the hardware segment dominates the market with the largest revenue share in 2023 and is expected to grow at a significant CAGR growth during the projected timeframe. Hardware is the physical infrastructure, which includes servers, storage devices, networking equipment, and other components in data center. The rapid growth of social media, digital transactions, and IoT driving the demand for expanded data storage and processing capabilities are contributing to drive the market growth in the hardware segment.

• The on-premise segment is dominating the market with the largest revenue share in 2023 and is expected to grow at a significant CAGR during the projected timeframe.

Based on the type, the Germany data center market is divided into on-premise, hyperscale, HPC, colocation, and edge. Among these, the on-premise segment is dominating the market with the largest revenue share in 2023 and is expected to grow at a significant CAGR during the projected timeframe. On-premise data center is a data center that a company owns and operates within its facilities, providing complete control over hardware, software, and network components. The implementation of tailored security protocols and ensuring storage of data and processing in-house are contributing to propel the market in the on-premise segment.

• The cloud service provider segment is dominating the market with the largest revenue share in 2023 and is expected to grow at a significant CAGR during the projected timeframe.

Based on the end-use, the Germany data center market is divided into cloud service provider, technology provider, telecom, healthcare, BFSI, retail & e-commerce, entertainment & media, energy, and others. Among these, the cloud service provider segment is dominating the market with the largest revenue share in 2023 and is expected to grow at a significant CAGR during the projected timeframe. Specialized services, including AI, machine learning, and big data analytics, are offered by cloud service providers. The adoption of cloud-based services due to a tech-savvy business environment and a skilled workforce is driving the market growth in the cloud service provider segment.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Germany data center market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• CyrusOne Inc.
• Digital Realty Trust Inc.
• Equinix Inc.
• Global Switch Holdings Limited
• GlobalConnect AB
• Iron Mountain Incorporated
• Leaseweb Global BV
• Lumen Technologies Inc.
• Noris Network AG
• NTT Ltd
• Telehouse (KDDI Corporation)
• Vantage Data Centers LLC
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In January 2023, CyrusOne acquired an office complex in Frankfurt, Germany, and plans to turn it into a data center campus.
• In November 2022, Vantage Data Centers has announced the delivery of three new facilities in Berlin and Frankfurt and has announced a new German office in Raunheim to support the country’s growth.

Market Segment

This study forecasts revenue at Germany, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the Germany Data Center Market based on the below-mentioned segments:

Germany Data Center Market, By Component

• Hardware
• Software
• Services

Germany Data Center Market, By Type

• On-premise
• Hyperscale
• HPC
• Colocation
• Edge

Germany Data Center Market, By End-use

• Cloud Service Provider
• Technology Provider
• Telecom
• Healthcare
• BFSI
• Retail & E-commerce
• Energy
• Others