Germany Data Center Rack Market Size (2024 - 2029)

The German data center rack market is experiencing growth driven by the increasing demand for cloud computing among small and medium-sized enterprises, stringent government regulations for local data security, and rising investments from domestic players. This expansion is reflected in the market's capacity and infrastructure developments, including significant increases in IT load capacity, raised floor space, and the number of racks planned for installation. Additionally, the development of submarine cable systems is enhancing connectivity, further supporting the market's growth trajectory.

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Market Size of Germany Data Center Rack Industry

Germany Data Center Rack Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period 2019 - 2022
CAGR (2024 - 2029) 10.69 %
Market Concentration Medium

Major Players

Germany Data Center Rack Market Major Players

*Disclaimer: Major Players sorted in no particular order

Germany Data Center Rack Market Analysis

The Germany Data Center Rack Market size in terms of production volume is expected to grow from 0.44 Million units in 2024 to 0.63 Million units by 2029, at a CAGR of 10.69% during the forecast period (2024-2029).

The German data center rack market reached a volume of 385,000 in the previous year, and it is further projected to register a CAGR of 7.3% during the forecast period. The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.

  • Under Construction IT Load Capacity: The upcoming IT load capacity of the German data center market is expected to reach more than 2300 MW by 2029.
  • Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase above 11 million sq. ft by 2029.
  • Planned Racks: The country's total number of racks to be installed is expected to reach above 5,88,000 units by 2029. Frankfurt is expected to house the maximum number of racks by 2029.
  • Planned Submarine Cables: There are close to 7 submarine cable systems connecting Germany, and many are under construction. In May 2023, German transmission system operator (TSO) 50Hertz and its partners in Estonia, Latvia, and Lithuania agreed on a joint hybrid submarine cable project called Baltic WindConnector in the Baltic Sea between Estonia and Germany.

Germany Data Center Rack Industry Segmentation

A data center rack is a physical enclosure made up of usually steel housing electronic framework. It is designed to house servers, networking and communication devices, cables, and other data center computing peripherals.

Germany's Data Center Rack Market is Segmented by rack size (quarter rack, half rack, full rack) and by end user (IT & telecommunication, BFSI, government, and media & entertainment). The market sizes and forecasts are provided in terms of volume (units) for all the above segments.

Rack Size
Quarter Rack
Half Rack
Full Rack
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-Users
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Germany Data Center Rack Market Size Summary

The German data center rack market is experiencing significant growth, driven by the increasing demand for cloud computing, stringent government regulations on data security, and substantial investments from domestic players. The market is characterized by a robust expansion in IT load capacity and raised floor space, with Frankfurt anticipated to host the majority of the racks. The proliferation of submarine cable systems further enhances Germany's connectivity, supporting the burgeoning data center infrastructure. The rise in data consumption, particularly through smartphones, has accelerated the adoption of full-rack data centers, which are essential for managing large volumes of data efficiently. This trend is bolstered by the rapid growth of mobile broadband networks and the integration of big data analytics with cloud computing, necessitating advanced infrastructure to meet the demands of large enterprises.

The ongoing digitization and the need for fast, stable broadband networks are pivotal in driving the German data center rack market. The expansion of broadband connections is crucial for supporting Industry 4.0, the Internet of Things, and e-government initiatives, thereby enhancing social well-being and economic competitiveness. The demand for 5G technology is also on the rise, with government support and strategic collaborations facilitating its adoption. The COVID-19 pandemic has further accelerated the shift towards faster network connections, boosting the adoption of Fiber to the Home (FTTH) solutions. The market is moderately competitive, with major players like Black Box Corporation, Eaton Corporation, and Hewlett Packard Enterprise dominating the landscape. Recent expansions and new facility developments by companies such as Vantage Data Centers and NTT Ltd. underscore the growing demand for data center racks, positioning Germany as a key player in the European data center market.

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Germany Data Center Rack Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Number of Smartphone Users

      2. 1.2.2 Fiber Connectivity Network Expansion

    3. 1.3 Market Restraints

      1. 1.3.1 Increasing number of Data Security Breaches

      2. 1.3.2 Low Availability of Resources

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Buyers/Consumers

      2. 1.5.2 Bargaining Power of Suppliers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Rack Size

      1. 2.1.1 Quarter Rack

      2. 2.1.2 Half Rack

      3. 2.1.3 Full Rack

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-Users

Germany Data Center Rack Market Size FAQs

The Germany Data Center Rack Market size is expected to reach 0.44 million units in 2024 and grow at a CAGR of 10.69% to reach 0.63 million units by 2029.

In 2024, the Germany Data Center Rack Market size is expected to reach 0.44 million units.

Germany Data Center Rack Market Report Snapshots

Germany Data Center Rack Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)