Market Trends of Denmark Data Center Storage Industry
The IT & Telecommunication Segment Holds the Major Share
- The market in Denmark is driven by rising cloud use across most companies as a result of developing technologies like artificial intelligence, big data, and blockchain. In 2021, the Munich-based managed cloud services platform Skaylink announced that it had merged with cVation, giving it a strong foothold in the Danish market. Both businesses will gradually bundle their cloud computing resources in the coming months.
- In May 2022, Nokia announced that team.blue Denmark, a unit of the team.blue Group, the top hosting and cloud services provider to small and medium-sized businesses (SMEs) in Europe, began using its 7750 Service Routers (SR). With the implementation, team.blue increased its network infrastructure to accommodate its 250,000 Danish clients' fast-expanding service needs. As the popularity of cloud computing services and applications increases, more colocation cloud-based data centers are being built in Denmark.
- The need for cloud solutions continues to grow in Denmark, and the demand for cloud-based data protection and backup solutions is expected to get more robust. In June 2022, Keepit, a cloud backup service with headquarters in Copenhagen, raised USD 22.5 million in debt financing from Silicon Valley Bank (SVB) in association with Vaekstfonden. The platform will use the additional cash to build its SaaS data security platform while developing new products and expanding internationally.
- The rising adoption of the cloud across most businesses is driven by new technologies like artificial intelligence, big data, and blockchain. In October 2022, TV 2 Denmark, a major Danish national TV station and subscription-based streaming platform, overhauled its cloud infrastructure and built an internal developer platform.
- In telecommunications, rising 4G adoption and the impending 5G wave are encouraging telecom companies to invest in the data center market. In 2022, more than 98% of the population in the country was connected via 4G. Denmark's broadband strategy for 2021 provided plans to have 98% of households and businesses with 1 Gbps download speeds by 2025. In Q2 2022, Denmark's 5G availability stood at 36.4%. Such instances in the market are expected to create more need for data centers, increasing the 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.
- To optimize costs, businesses in Denmark often use hybrid storage, which is on-premise or cloud storage for essential data and allows less important or archived data to be moved to cloud instances using different cost structures.
- Data center needs are growing due to continued digital transformation across industries, which increases demand for data storage and, consequently, the need for more hybrid-type storage facilities within data centers.
- The country's internet penetration increased from 97% in 2017 to 99% in 2021. At the same time, the number of smartphone users increased from 4.75 million in 2017 to 5.47 million in 2021. E-commerce sales in Denmark increased from EUR 19.5 billion (USD 20.54 billion) in 2019 to EUR 21.45 billion (USD 22.5 billion) in 2020, suggesting that people are now more inclined to prefer cashless transactions, which is expected to have a long-term impact on the market. Such aspects are expected to complement the growth and demand for data processing facilities in the telecom industry, resulting in the country's rise in data center storage demand and contributing to segmental growth.
- The key players in the market are focused 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.
