Market Trends of Austria Data Center Networking Industry
IT & Telecommunication Segment Holds the Major Share
- The IT industry is one of the most rapidly expanding markets in the technology sector due to its ongoing development and the emergence of new trends each year. Many firms have recognized the necessity for digital adoption in their commercial activities, which the COVID-19 pandemic accelerated.
- More businesses are likely to use external support to adopt new technology solutions in a quick, contemporary, and creative way. For instance, in October 2022, Google announced its set up of cloud services in Austria with a data center. In June 2022, Microsoft announced spending EUR 1 billion (USD 1.07 billion) on the construction of its cloud infrastructure.
- Further, Telcom users in Austria see a better 5G experience in urban areas, with an average download speed of 162.3 Mbps. The abovementioned instances suggest the rising use of smartphones in Austria, which results in a constant increase in data. This necessitates a growing amount of storage space to accommodate the uncontrollable flow of data and the need for real-time processing and analysis. Data centers must manage the sheer amount of data. Thus, the requirement for extra servers in data centers in Austria may increase as the number of smartphone users rises.
- In 2022, the nation's average data speed was expected to be 63.05 Mbps. 3 (Drei) Austria began rolling out its 4G LTE network in 2014, and 4G availability reached 74.3% with a 27.84 Mbps download speed by 2017. Furthermore, by the end of 2020, 5G was launched in all provincial capitals. Since the launch of both of the services, 4G reached 89.6 Mbps in 2022, and 5G reached 162.4 Mbps by 2022.
- The “5G strategy for Austria” document was approved in April 2018, and the service is expected to reach main traffic roads by the end of 2023, followed by nationwide coverage for two years.
- More than 650,000 buildings are expected to have high-speed FTTH ("Fibre to the Home") internet connections owing to the EUR 1 billion (USD 1.07 billion) investment. Such developments are expected to increase the adoption of data storage solutions and positively impact market growth.
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Ethernet Switches Holds Largest Market Share
- In Austria, the importance of Ethernet switches in data center facilities is multifaceted because they are essential in ensuring efficient, reliable, and secure communications within data centers, supporting a wide range of digital services, applications, and transactions.
- Ethernet switch acts as the backbone of a data center that facilitates communication between servers, storage devices, and other networking equipment. In order to enable data flows in the facility, it provides necessary connectivity.
- Austria has a strong emphasis on innovation and research. In order to meet the needs of research institutions, universities, and technology companies in terms of network provision to promote collaboration and progress in different fields, data center effective networking services are needed.
- Austria is experiencing an increase in demand for cloud services. The efficient communication of servers, storage facilities, and network components for providing a wide range of cloud computing services to enterprises and organizations is facilitated using ethernet switches that support Scalable and Reliable Cloud Services.
- Moreover, increasing focus on digitalization, Internet penetration (reached 94.2% by the start of 2023, with a growth rate of 0.2% between 2022 and 2023), and e-commerce sales across the country create more need for storage facilities, resulting in huge demand for data centers and, consequently, the need for more ethernet switches within data centers.
- The key players in the market focus on updating the network devices to meet the market demand. In July 2023, Broadcom introduced a new software-programmable Trident 4-X7 Ethernet switch ASIC to support the growing need for 400G connectivity inside enterprise data centers as demand for increasing bandwidth levels increases.
