Implementation of Open Infrastructure Solutions to Gain Prominence in Data Center Market in Europe: Technavio

Renewable energy


The data center market in Europe is expected to grow at a CAGR of around 9% during the forecast period, thanks to the high adoption rate of IT infrastructure, says Technavio.

Technavio has announced its latest market research report on data center for the forecast period, 2016-2020. This market analysis, under the data center vertical, discusses the major drivers and key emerging trends that will influence the growth of the data center market in Europe during the forecast period. Some of the top vendors listed in this industry analysis include Colt Technology Services, Digital Realty, Equinix, Global Switch, Interoute, Interxion, and NTT Communications.

The implementation of open infrastructure solutions is gaining traction in various enterprise data centers. Organizations like Facebook are using open infrastructure that includes storage, servers, and networking products. Most of these products are either designed by these organizations or are shared among enterprises and ODMs through an open community. In the computer infrastructure, a white-box is a server, storage, or network which are offered by ODMs along with white-box storage and switching products that are economical and energy efficient,” says Abhishek Sharma, an industry expert at Technavio for research on data center.

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This new industry research report from Technavio analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.

Cheaper power cost and availability of renewable sources

Constructing and operating data centers in the European countries differ from one country to another. The industrial electricity cost per kWh is costlier in the UK and Germany compared to Nordic countries. The growing concerns over the reduction of OPEX are assisted by the reduction of electricity consumption and are achieved through less electricity cost and financial incentives. Moreover, almost all European countries are suitable for the implementation of the free cooling techniques due to the favorable climatic conditions. Owing to the increased carbon emission by data centers, the construction of these facilities in regions where there is plenty of renewable energy sources will boost the market growth steadily during the forecast period. 

Growing business demands

The amount of data center construction is growing in several European countries due to the favorable environmental conditions for data center operations. Besides this, the growth is also supported by the demand for enterprise businesses to operate business through cloud platforms and the amplified need for colocation services in the region. Moreover, CSPs and colocation providers are incessantly involved in the construction of additional data centers and extension of existing ones in this region to power the mounting business demands from enterprises throughout Europe.  The market for cloud-based services is expected to grow at a CAGR of around 18% in Europe regions, where its associated services, IaaS, PaaS, and SaaS, are anticipated to contribute equally toward the growth.

Growing IoT

The growing number of connected devices will lead to the generation of large blocks of data. Ideas such as connected health, connected homes, connected cars, and smart cities are gaining popularity. Many industries such as automotive, retail, utilities, manufacturing, and social media are using the IoT for increased data transfer. The IoT is expected to be a strong factor in the growth of the European GDP during the forecast period through increased productivity. The growth of IoT among the transportation and healthcare sector is expected to be higher compared to other industry verticals. With the growing investment in IoT technology across Europe, the number of data centers that are required to enable smarter connectivity is also expected to grow significantly in the coming years.

Some of the other prominent vendors identified in this report are Amazon Web Service (AWS), Apple, British Telecom (BT), CenturyLink, Data4, Deutsche Telekom, DigiPlex, Facebook, Fujitsu, Google, Green Datacenter, IBM, IO, iomart, Level 3 Communications, Microsoft, Pulsant, QTS, Sungard Availability Services, Telefónica, Telehouse, TeleSonera, Verizon Communications, and Zayo.

This research report includes an in-depth analysis, market shares, and sizes of the sub-segments and geography. It provides a comprehensive analysis of the key companies, including their market shares, business overview, and key financials. The market study also offers a detailed analysis of key drivers, challenges, and opportunities influencing this market.

A more detailed analysis is available in the Technavio report titled, ‘Data Center Market in Europe 2016-2020‘. Technavio also customizes reports by other regions and specific segments upon request.

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