Market Trends of Belgium Data Center Storage Industry
IT & Telecommunication Segment Holds the Major Share.
- Cloud and telecom are anticipated to contribute the largest market shares among end-user industries. Due to the increasing data generation, which drives the demand for quicker processing and effective servers, the cloud segment generates significant revenue.
- The Belgian government is providing significant investments to develop its IT infrastructure. Incentives are available in the Flanders region for fields requiring a lot of research, such as ICT and cloud computing. These include the investment deduction for R&D, which is equal to 20.5% of the depreciated amount or 13.5% of the acquisition value of the qualified asset. Additionally, up to 85% of a firm's net earnings from innovation are tax exempted. Such aspects are expected to drive the demand for data storage and processing facilities.
- Several incubators in the country are also supporting the success of newcomers to the ICT and cloud computing industries in Flanders by offering access to reasonably priced office space, administrative services, and even development infrastructure. The production value of ICT services increased from EUR 31.7 billion (USD 33.4 billion) in 2017 to EUR 35.3 billion (USD 37.19 billion) in 2019 and continues to grow. Such factors depict the growing need for racks and storage facilities for ICT services.
- In the telecom sector, Belgium will phase out 2G and 3G mobile services by 2030. The major strategy for all operators is to turn off their 2G and 3G networks, which will allow them to focus investments and spectrum resources on further improving the 4G customer experience while rolling out 5G. High levels of broadband and cable connection for high-speed internet are readily available and reasonably priced, assisting with the expansion of digital penetration and propelling the nation's e-commerce business.
- For instance, there will be 1.5 million more mobile broadband connections overall between 2022 and 2028, a 14.4% increase. Such instances in the market are expected to create more need for data centers, resulting in rising demand for data center storage solutions in the coming years.
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Hybrid Storage is Expected to Hold a Significant Market Share
- The combination of on-premises and cloud storage solutions is called hybrid storage in data centers. This approach leverages the strengths of both environments, offering the flexibility to store and manage data on-site and in the cloud.
- Belgium is a major hub of international trade due to its central location in Europe bordered by developed nations. Hybrid storage enables enterprises to communicate with one another worldwide, allowing efficient transmission and management of data across premises infrastructures and cloud services in support of international operations.
- With large amounts of data generated every day, businesses rely on data centers to efficiently manage data and storage. Therefore, the increasing use of hybrid storage data centers is the most important factor affecting data center storage consumption. Increasing demand for technology services and investments by large companies are also changing the market growth.
- Sales have increased recently in Belgium, making the country one of the fastest-growing countries in the e-commerce market.
- Further, the goals of Belgium's digital transformation program include the modernization of public services, strengthening fiber infrastructure, and preparing for 5G. The pandemic has caused 36% of Belgian businesses to speed up their digitization. Additionally, 91% of firms aim to increase or keep their headcount while automating. These factors are further expected to increase the demand for hybrid storage-type data centers during the forecast period.
- The key players in the market focus on improving the data center storage solutions to meet the market demand. In May 2023, Infinidat, a prominent provider of enterprise storage solutions, announced the launch of two prominent new solutions. The solutions include the launch of InfuzeOS Cloud Edition, which expands Infinidat’s support of hybrid cloud storage deployments and new InfiniSafe Cyber Detection for enterprise primary storage to better resist cyberattacks.
