Market Trends of Belgium Data Center Rack Industry
IT & Telecommunication sector accounted for majority market share in 2023.
- Increasing digital integration in shopping trends is driving smartphone penetration in the region. Looking at the regional breakdown within the country, the predominantly Dutch-speaking Flemish part has the highest e-commerce penetration at 70%, compared to 59% in the French-speaking Walloon region. There is a narrow digital divide between these two regions regarding the percentage of businesses that take online orders.
- IT and telecommunication are vital to the economic and social health of the country; it is expected to hold the highest market share in the forecasted period. Globally, Belgium ranks 44th with an average fixed broadband Internet download speed of 86.61 Mbps, while mobile Internet download speed ranks 34th with 56.46 Mbps.
- 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.
- New technologies like AI, big data, and blockchain are driving the usage of the cloud across most enterprises. Hyperscale data centers are also being used to build robust and scalable cloud networks that can save costs, boost availability, and satisfy customers. As end users consume more data for computation and storage, it increases the demand for additional racks and, in turn, expands the market for data centers in the country.
Understand The Key Trends Shaping This Market
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Full Rack is the fastest growing segment in 2023.
- In Belgium, due to the increasing shortage of space in various companies, full shelving has taken a large part of the market share in France. The demand for complete rack data center infrastructure is increasing to cope with the increasing rack size due to the rapid growth of mobile broadband networks and e-commerce due to the increase in big data analytics combined with cloud computing.
- Sales have increased recently in Belgium, making the country one of the fastest-growing countries in the e-commerce market.
- With large amounts of data generated every day, businesses rely on data centers to efficiently manage data and storage. Therefore, the increasing use of full-rack data centers is the most important factor affecting data center rack consumption. Increasing demand for technology services and investments by large companies are also changing the market growth.
- Additionally, the focus was solely on data center rack infrastructure, with only size and cost considered during deployment. However, the introduction of high-density applications by various end-users, such as online banking, IT and telecommunications, media, and entertainment, creates opportunities for increased usage of full racks of data centers.
