Market Trends of Norway Data Center Storage Industry
IT & Telecommunication Segment holds the major share.
- Cloud services are growing in popularity in Norway. The need for big data integration and the demand for more remote work and data migration to the cloud are driving the use of domestic cloud data centers.
- Additionally, Norway data center providers are gradually collaborating with local and international technology companies to offer a wide range of services to their customers.
- Cloud infrastructure offers clients increased scalability and access to files from anywhere in the world. For instance, Norway's percentage of businesses using cloud services increased from 29% in 2014 to 60% by 2021, which is expected to grow.
- Owing to growing business requirements, companies have started seeking infrastructure services that could manage data traffic fluctuations and help them impart better services to customers with the least downtime duration. This has led to companies transitioning from their old system infrastructure to cloud infrastructure, which is expected to grow proportionally over the years.
- Further, the telecom segment provides its services to consumers using sophisticated virtual systems. With the advent of cloud infrastructure, telecommunication processes became simpler, which led them to switch toward a hybrid cloud structure, a combination of public and private cloud structures.
- With enhanced broadband speeds of 72.36 Mbps on 4G, mobile data consumption was expected to reach 8.5 GB/month in 2022 due to increased bandwidth speeds. It is expected to increase from 12.4 GB/month in 2023 to 64.4 GB/month in 2029. In addition, operators see 5G to overall uplift in average download speeds from 2.5 times for Telenor and ice, to 2.7 times for Telia. Such instances in the market are expected to create more need for data centers, 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.
- Norway has been intensely focused on renewable energy, with a considerable share of its power deriving from hydropower. In this respect, Hybrid storage data centers can exploit it by optimizing energy use and aligning themselves with sustainable practices to contribute to the country's environmental objectives.
- In Norway, government initiatives aiming at technology adoption and innovation can contribute to the demand for hybrid storage-type data centers. These initiatives can emphasize the need for upgrading IT infrastructure to support digital transformation.
- Furthermore, the implementation of 5G in the country has led to an increase in the consumption of data, which has triggered the growth of data centers in the country. Norway currently has a total population of around 5.49 million, of which 5.43 million are internet users. Around 63.05% of the users primarily use laptops, while around 35.13% use smartphones to access internet services. About 881.9 thousand homes use smart home appliances for health, with a penetration of 35.6% for smart devices in Norway. Such market improvements propel Data Centers' growth and contribute to segmental growth.
- The key players in the market focus 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.
