Market Trends of Poland Data Center Rack Industry
Full Rack is the fastest growing segment in 2023.
- In Poland, due to the increasing shortage of space in various companies, full rack in data centers has taken a large part of the market share in France. 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.
- Poland is witnessing the evolution of smartphone usage, evident from the increasing data consumption and demand for faster internet access by the Polish population. The network latency in Poland decreased from about 69 ms in 2016 to about 33 ms in 2022. The Polish market is at an evolving stage for gaming and other mission-critical and real-time applications, encouraging users to switch to faster smartphones and network alternatives to leverage such a potent network, contributing to overall usage.
- Further, with large amounts of data generated every day in Poland, 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.
- Around 84% of the companies sell their products online, and the age group that actively purchases the products lies in the range of 29-49 years. Clothing and shoes are the most sought-after products, accounting for around 44% of e-commerce sales. The growing demand for online shopping would simultaneously increase data consumption, leading to an increased IT load capacity for processing these huge amounts of data. The number of racks is expected to grow with the growing demand.
IT & Telecommunication is the largest segment
- One of the best-performing and most promising ICT sectors is the gaming industry. Poland's turnover is EUR 500 million (USD 539.14 million), making it the 23rd most profitable country globally. About 500 games are produced in Poland every year. CD Projekt, 11 Bit Studios, The Witcher, and This War of Mine are among the companies that have brought Poland to the global gaming scene.
- Web and mobile development outstaffing/outsourcing are the main business models of Polish IT companies. Of particular note is the IT outsourcing market and the increase in human resources. As software development penetrates almost every industry, the demand for IT services in Poland is increasing. Poland's IT outsourcing sector is one of the most advanced, even more advanced than the IT hardware sector.
- Manufacturing is a growing market in the country due to increased investment in plant automation and Industry 4.0.
- The telecommunications department has upgraded its technology several times and now uses cloud infrastructure. 73% of telcos now run at least one cloud infrastructure application in the cloud. Telcos are moving away from using complex virtual machines to cloud infrastructure as cloud infrastructure improves scalability through auto-scaling options. Cloud infrastructures are further evolving into hybrid cloud structures where public and private cloud services work together to distribute workloads and provide better service.