Europe Data Center Server Market size crossed USD 15 billion in 2020 and is set to expand at over 9% CAGR between 2021 and 2027. An increase in internet usage and data generation in the region will propel the market growth.
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The rising construction of mega data centers and the colocation trend are expected to drive the industry expansion. In September 2020, NTT Limited announced to open the Hamstead 4 Data Center in the UK by the fourth quarter of 2021. Mega data centers store and process a large amount of data and require high-capacity servers to manage & monitor the functioning of IT equipment. The exponential and rapid growth in data consumed by various individuals, organizations, and businesses will boost the market demand.
According to the International Finance Corporation (IFC), the COVID-19 pandemic impacted several European countries through five transmission channels including trade, value chain, commodity prices, the financial & credits market, and tourism. According to the European Parliament, compared to the global economy, the euro area has experienced a larger hit in 2020 and will experience a slower recovery in 2021. The EU is significantly lagging in the recovery forecasts compared to China (7.9% growth for 2021).
The IT sector in Europe witnessed high demand in FY2020 due to work from home and remote working. Rising demand for OTT services, work from home, and high adoption of internet banking services have led to the high demand for managing, monitoring & storing digital information that, in turn, rose the demand for data center servers.
Europe Market, By Type
The growing adoption of hybrid clouds and virtualization will fuel the demand for rack servers. Rack servers are general-purpose devices to support a wide range of requirements. Rack servers are typically built as a stand-alone system. These servers are equipped with internal fans for cooling and running high-end applications. For instance, Dell Technologies provides various on-premise solutions including PowerEdge cloud-ready servers, ready node platforms, Lifecycle management, and ready solutions for HPC and AI. The Power Edge portfolio consists of racks, towers, and modular servers that are used to ensure data mobility and consistent operation of critical workloads across the on-premise, hybrid cloud, or multi-cloud model.
Europe Market, By Application
The expanding healthcare sector in Europe will offer growth opportunities to the data center server market. According to the (EU) 2016/679 standard, all public and private healthcare service providers in Europe must maintain electronic health records of patients and protect their privacy. This will create a need for data storage, directly increasing the demand for data center servers in Europe. Fujitsu Limited is one of the prominent players in the market. The company provides servers for the healthcare industry to reduce process complexity and provide full disaster recovery.
Competitive Industry Landscape
Prominent companies in the market include Atos SE, Cisco Systems, Inc., Dell Technologies Inc., Fujitsu Limited, Hewlett Packard Enterprise, IBM Corporation, Intel Corporation, Lenovo Group, NEC Corporation, and Oracle Corporation, among others.
In August 2020, IBM Corporation launched the IBM Power 10 processor for data centers. With this processor, IBM provides container security, which includes transparent memory encryption security and the ability to pool petabytes of memory between multiple servers to cut data center operational costs.