Market Trends of Germany Data Center Storage Industry
IT & Telecommunication Segment Holds the Major Share.
- Increased adoption of cloud computing services in the country has increased IT infrastructure components. Many technology companies have launched cloud services to support the digital transformation efforts of many enterprises, and increased adoption of e-commerce services has facilitated digitization. These instances are increasing the demand for the data center storage market during the forecast period.
- Moreover, the data center market is achieving new records due to the increasing penetration of connected devices, including consolidation and the emergence of new players. Such cases will have a positive impact on market growth.
- Mobile broadband communication in Germany has evolved drastically. The 4G internet services were launched around 2011 in Germany, with major operators rolling out their services, with maximum download speeds recorded at around 45 Mbps. Despite the introduction of 5G around 2019, the average download speed of mobile internet in Germany accounted for about 24 Mbps, down to the increasing demand for faster internet speeds, outpacing the capacity to handle the increasing demand. To support the demand, more data centers are formed, which corresponds to positively influencing the data center storage market.
- The number of servers in data centers is likely to increase as the growing demand for these digital services and the changing adoption of end users, primarily focused on digital connectivity, require more data storage. Typically, this situation corresponds to increased demand for data centers. Increasing data centers necessitates increasing the use of solutions for data storage.
- With the constant evolution of network consumption and the need for faster data transmission rates in Germany, the country's laying down of fiber networks has increased. Significant network service providers are coming forward to take strategic steps through investments and partnerships to contribute to the expansion plans in the country, with the government also contributing to the same. With increasing connectivity, the number of data centers will increase, resulting in rising demand for data center storage solutions in the coming years.
Understand The Key Trends Shaping This Market
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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.
- Germany has a strong emphasis on technology innovation. Hybrid storage provides the necessary infrastructure to integrate advanced technologies such as AI, Machine Learning, and Analytics seamlessly.
- Germany has strict data protection laws, and many businesses prefer data centers within the country to ensure compliance with these regulations. The focus on data sovereignty and compliance drives the demand for local data center services.
- With the growing demand for faster connectivity, the demand for 5G has been growing, governments are providing support through deregulation. Moreover, the increasing adoption of 5G is analyzed in tandem with collaborations to boost the growth rate of the market during the forecast period. For instance, in June 2022, Deutsche Telekom announced that it would be the first company to offer its 5G service on frequencies in the 700 MHz band. The use of the 700 MHz band will improve mobile phone coverage in rural Germany, according to European operators. The telco found that the 700MHz frequency is being used for 5G broadcasting with about 3,000 antennas in about 1,100 locations.
- The key players in the market focus on improving the data center storage solutions to meet the market demand. In July 2023, Hitachi Vantara, a prominent infrastructure, data management, and digital solutions subsidiary of Hitachi, Ltd., announced its collaboration with Microsoft to launch the Hitachi Unified Compute Platform (UCP) for Azure Stack HCI. The powerful and streamlined hybrid cloud solution increases business flexibility. It delivers enhanced cloud management across various environments, including data centers, branch offices, and edge computing, to give businesses greater visibility and control over how their data is stored, managed, and used.
