Market Trends of Italy Data Center Rack Industry
IT & Telecommunication sector accounted for majority market share
- The ICT sector includes both IT and telecommunications markets. IT investment is on the rise, and the demand for the ICT market is expected to grow significantly over the next five years. For example, TIM Group (Telecom Italia S.p.a.) has partnered with Cisco to provide cloud services to private enterprises and government agencies. The growing need to consider and start investing in cloud technology has greatly fueled the growth of his ICT market in Italy.
- There is increasing government investment to promote the development of numerous technologies such as 5G, AI, IoT, machine learning, and big data. Moreover, the advent of digital transformation is expected to drive the growth of the Italian ICT market. Capgemini Invent, for example, is expanding its presence in Europe by launching all its products in Italy. The company offers a comprehensive portfolio of services in Italy, including intelligent industrial strategy and business transformation services.
- The government has committed to developing the ICT industry, bringing new growth opportunities to the ICT market. For example, Italy's National Recovery and Resilience Plan will likely provide a positive impetus and impact on the ICT market in 2021-2024. Italy is one of the leading providers of the digital market. In the three years from 2022 to 2024, the major technological drivers will continue to be cloud computing, big data, artificial intelligence (AI), Internet of Things (IoT), and cybersecurity.
- As more and more cities deploy smart systems and develop into smart cities, the demand for massive computing facilities is expected to grow proportionately. His VOD subscribers in Italy have increased fivefold. The IT & Telecom sector is, therefore, expected to drive the growth of Tier-4 and Tier-3 facilities in line with the vast amount of data being generated.
Understand The Key Trends Shaping This Market
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Full Rack is the fastest growing segment
- With large amounts of data generated every day in Italy, 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.
- The increasing demand for bandwidth among large businesses such as content-oriented companies, online gaming, and IT businesses has called for advanced infrastructural facilities, as it helps them provide optimum performance to their users. The advertisement and digital content market value in the gaming and entertainment industry increased substantially, suggesting the growth of digital media in the region, which in turn requires uninterrupted service for data processing and storage.
- Further, due to the increasing shortage of space in various companies, a full rack in the data center has taken a large part of the market share in Italy. The demand for full-rack data center infrastructure is increasing to cope with the increasing rack size due to the rapid growth of mobile broadband networks due to the increase in big data analytics combined with cloud computing.
- Amazon, eBay, Facebook Marketplace, Alibaba, Zalando, ePrice, and Tmall are e-commerce services used in Italy. Amazon is the market leader with about 38% market share, followed by eBay (19%) and Facebook Marketplace (12%). With the easing of pandemic restrictions, people have started exploring the market before buying online. The total number of unique users of e-commerce and applications in Italy increased from 35.5 million in September 2020 to 38.1 million in September 2022. The growing number of individual users indicates an increasing demand for domestic data storage facilities and processing centers.
