Europe Data Center Equipment Market was valued at USD 50 Billion in 2022 and is projected to reach USD 80 Billion by 2030, growing at a CAGR of 6.7% from 2024 to 2030.
The European data center equipment market is experiencing rapid growth, driven by the escalating demand for data storage, processing, and transmission. This surge is fueled by the proliferation of cloud computing, Internet of Things (IoT) devices, and artificial intelligence (AI) applications. As industries across Europe digitize their operations, the need for robust and efficient data center infrastructure becomes paramount.
Market Overview
In 2023, investments in the European data center market were valued at approximately USD 42.98 billion, with projections indicating a rise to USD 64.50 billion by 2029, reflecting a compound annual growth rate (CAGR) of 7.00% during this period. This growth underscores the critical role data centers play in supporting the continent's digital economy.
Types of Data Center Equipment
Servers: The backbone of data centers, servers handle data processing tasks. With the advent of AI and machine learning, there's a shift towards high-performance computing servers capable of managing complex computations.
Storage Devices: As data generation accelerates, scalable and efficient storage solutions are essential. Industries are increasingly adopting solid-state drives (SSDs) over traditional hard disk drives (HDDs) due to their faster data retrieval speeds and reliability.
Networking Equipment: Ensuring seamless data flow, networking components like routers, switches, and transceivers are vital. The transition to 100 Gigabit Ethernet is notable, with 100G QSFP28 optical transceivers emerging as the preferred choice due to their compact size and energy efficiency.
Cooling Systems: Effective thermal management is crucial to maintain optimal equipment performance and longevity. Innovations in liquid cooling and immersion cooling technologies are gaining traction to address the increasing heat densities in modern data centers.
Power Supply Units: Reliable power infrastructure, including uninterruptible power supplies (UPS) and backup generators, ensures continuous operation, safeguarding against power disruptions.
Industry Requirements
Different industries have specific requirements from data center equipment:
Financial Services: Require ultra-low latency and high-frequency trading capabilities, necessitating high-performance servers and networking equipment.
Healthcare: Demand secure and compliant storage solutions to handle sensitive patient data, emphasizing data integrity and confidentiality.
Manufacturing: With the rise of Industry 4.0, there's a need for real-time data processing and analytics, driving the adoption of edge computing solutions.
Telecommunications: The rollout of 5G networks requires data centers to support massive data throughput and low latency, emphasizing robust networking infrastructure.
Personal Experience
In my experience working with various European enterprises, the shift towards 100 Gigabit Ethernet has been a significant trend. Companies are increasingly deploying 100G QSFP28 optical transceivers to meet their growing data transmission needs. This transition not only enhances network performance but also aligns with the industry's move towards more compact and energy-efficient solutions. Additionally, the emphasis on sustainable practices has led organizations to invest in advanced cooling systems, such as liquid cooling, to reduce energy consumption and operational costs.
Future Outlook
The European data center equipment market is poised for continued growth. Emerging technologies like AI, IoT, and edge computing will drive further investments in high-performance servers, scalable storage solutions, and advanced networking equipment. Moreover, sustainability will remain a focal point, with industries seeking eco-friendly and energy-efficient data center solutions to align with environmental regulations and corporate social responsibility goals.
Get an In-Depth Research Analysis of the Europe Data Center Equipment Market Size And Forecast [2025-2032]
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Cisco Systems
Nokia
Avaya
Dell
Juniper Networks
NetApp
EMC
Hewlett Packard
IBM
Oracle
Fujitsu Corporationand QNAP Systems
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By the year 2030, the scale for growth in the market research industry is reported to be above 120 billion which further indicates its projected compound annual growth rate (CAGR), of more than 5.8% from 2023 to 2030. There have also been disruptions in the industry due to advancements in machine learning, artificial intelligence and data analytics There is predictive analysis and real time information about consumers which such technologies provide to the companies enabling them to make better and precise decisions. The Asia-Pacific region is expected to be a key driver of growth, accounting for more than 35% of total revenue growth. In addition, new innovative techniques such as mobile surveys, social listening, and online panels, which emphasize speed, precision, and customization, are also transforming this particular sector.
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Growing demand for below applications around the world has had a direct impact on the growth of the Europe Data Center Equipment Market
Server
Storage Systems
Networking Equipment
Power Supply Units
Cooling Systems
IT & Telecommunications
Banking, Financial Services, and Insurance (BFSI)
Healthcare
Government
Retail
Colocation Data Centers
Enterprise Data Centers
Cloud Data Centers
Edge Data Centers
Hyperscale Data Centers
On-premises
Cloud-based
Hybrid
Traditional Infrastructure
Virtualization Technology
Software-Defined Infrastructure
Hyperconverged Infrastructure
Containerized Infrastructure
US (United States, US and Mexico)
Europe (Germany, UK, France, Italy, Russia, Turkey, etc.)
Asia-Pacific (China, Japan, Korea, India, Australia, Indonesia, Thailand, Philippines, Malaysia and Vietnam)
South America (Brazil, Argentina, Columbia, etc.)
Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria and South Africa)
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1. Introduction of the Europe Data Center Equipment Market
Overview of the Market
Scope of Report
Assumptions
2. Executive Summary
3. Research Methodology of Verified Market Reports
Data Mining
Validation
Primary Interviews
List of Data Sources
4. Europe Data Center Equipment Market Outlook
Overview
Market Dynamics
Drivers
Restraints
Opportunities
Porters Five Force Model
Value Chain Analysis
5. Europe Data Center Equipment Market, By Type
6. Europe Data Center Equipment Market, By Application
7. Europe Data Center Equipment Market, By Geography
US
Europe
Asia Pacific
Rest of the World
8. Europe Data Center Equipment Market Competitive Landscape
Overview
Company Market Ranking
Key Development Strategies
9. Company Profiles
10. Appendix
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