Sweden Data Center Networking Market Size
| Study Period | 2018 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 218.16 Million |
| Market Size (2029) | USD 264.03 Million |
| CAGR (2024 - 2029) | 3.89 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Sweden Data Center Networking Market Analysis
The Sweden Data Center Networking Market size is estimated at USD 218.16 million in 2024, and is expected to reach USD 264.03 million by 2029, growing at a CAGR of 3.89% during the forecast period (2024-2029).
The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.
- The IT load capacity of the Swedish data center market may grow steadily and reach 400 MW by 2029. The country's total raised floor area is expected to reach 1.2 million sq. ft by 2029.
- The country's total number of installed racks is expected to reach 87,000 units by 2029. Stockholm may house the maximum number of racks by 2029. There are close to 26 submarine cable systems connecting Sweden, and many are under construction.
- An increasing need for data storage has resulted in an upsurge in the number of data centers nationwide. Additionally, energy represents around 40% of the operational costs of a data center; it is also becoming increasingly important for data centers to focus on energy efficiency.
- To improve energy efficiency as a cost-saving measure, key players focus on developing a green standard for data centers in Sweden, which results in increasing the demand for Infrastructure management. Hence, such factors are expected to drive market growth during the forecast period.
Sweden Data Center Networking Market Trends
IT & Telecommunication Segment Holds the Major Share.
- The cloud segment is the primary contractor for data center services in Sweden, followed by the telecom segment. By 2021, it was estimated that 5G connections in Swedish accounted for 6.2% of the country's overall mobile connections. Operators have been intensively focusing on network investments to expand 5G coverage across Sweden.
- Telecom operators aim to offer 5G coverage to more than 90% of the population by 2023, driving the increasing need for high-computation facilities in the country, expected to boost the market over the forecast period.
- The growth in mobile data traffic per smartphone is primarily caused by improved device capabilities, increased data-intensive content, and ongoing network performance improvements. Notably, the number of Facebook users increased from 7.9 million in 2021 to 8.7 million in 2022, accounting for 84.4% of the population. Similarly, the number of Instagram users grew from 5.03 million in 2021 to 6.06 million in 2022. Additionally, the Swedish Association of Local Authorities and Regions (SALAR) developed a vision for a Swedish e-health strategy, investing 1.21 billion annually in healthcare IT.
- As the number of smartphone users in Sweden rises, it results in increased connectivity across the country. Operators, like the joint venture between Tele2 and Telenor called Net4Mobility, are focusing on accelerating the 5G network expansion. Tele2 and Telenor Sweden plan to extend Net4Mobility's reach to 90% of the Swedish population by the end of 2023 and cover the remaining 20% in 2024. Telia Sweden also aims to achieve 5G coverage equivalent to its 4G network by 2025 through collaboration with Ericsson. It intends to cover more than 90% of the population by 2023, eventually extending to 90% geographic and more than 99% population coverage.
- The growth of broadband connectivity in Sweden is driven by increased demand for data consumption by households and businesses, further encouraged by government initiatives. Moreover, the extensive use of wireless devices and growing internet connections is heightening the demand for online cloud platforms. The increasing digital penetration of devices like computers, which rose from 89.72% in 2017 to 94.36% in 2022, has notably increased data traffic over broadband channels, substantiating the growth of cloud computing services. These developmental aspects are expected to complement the growth of data centers in the region and substantiate the growth of network devices and services in the market.
Ethernet Switches Holds Largest Market Share
- In Sweden, Ethernet switches play a multifaceted role within data center facilities, serving as critical components for ensuring efficient, reliable, and secure communications. These switches support a wide array of digital services, applications, and transactions. Acting as the backbone of a data center, Ethernet switches facilitate seamless communication among servers, storage devices, and other networking equipment, enabling necessary connectivity to facilitate data flows within the facility.
- The country's reputation as a hub for innovation and technology further amplifies the indispensability of Ethernet switches in data centers. These switches are vital in meeting the networking needs of research institutions, technology companies, and innovation centers, fostering collaboration and technical advancement.
- Sweden's strong commitment to sustainability and its prominent position in renewable energy adoption aligns with the utilization of Ethernet switches for energy-efficient practices within data centers. Integration with renewable power sources underscores the country's dedication to sustainable technology infrastructure.
- Moreover, Sweden boasts a high level of digital readiness, evidenced by its significant internet usage, social media engagement, mobile connections, 5G adoption, online commerce, and digital payments. Notably, according to GSMA's Q2 2022 report, Sweden led the Nordic region in 5G median download speed, a testament to the country's robust digitalization strategy. Consequently, these factors drive substantial demand for data centers, escalating the need for more Ethernet switches within these facilities.
- The market's major players are actively updating network devices to meet the escalating demands. For instance, in November 2022, Siemens launched the new generation of Siemens Industrial Ethernet Switches. This next-gen series, replacing the current Scalance X-300 series, includes the 'Scalance XCN 300' in the compact version and the Scalance XR305XRM for 19-inch versions. Notably, these switches aim to enhance OT/IT collaboration, reinforcing their importance within evolving data center infrastructures.
Sweden Data Center Networking Industry Overview
The forthcoming DC construction projects across the country are poised to significantly boost the demand for Sweden's Data Center Networking Market in the upcoming years. This market is moderately consolidated, with key players such as Cisco Systems Inc., Arista Networks Inc., VMware Inc., Huawei Technologies Co. Ltd., and NVIDIA Corporation dominating the landscape. These major entities, holding substantial market shares, are actively focused on expanding their regional clientele.
In June 2023, Cisco unveiled the Nexus 9800 Series modular switches, an expansion of the Cisco Nexus 9000 Series portfolio. This innovation introduces a new chassis architecture capable of incorporating various first-generation line cards and fabric modules. This enhancement enables scalability from 57 Tbps up to 115 Tbps. The line cards now support 400GE or 100GE ports and higher speeds, augmenting the capabilities of each line card slot within the chassis.
In March 2023, Arista Networks introduced the Arista WAN Routing System, comprising three innovative networking solutions. These include carrier/cloud-neutral internet transit capabilities, enterprise-class routing platforms, and the CloudVision Pathfinder Service. This integrated system aims to streamline and enhance customer-wide area networks, offering modernized architecture, features, and media for federated and software-defined wide-area networks.
Sweden Data Center Networking Market Leaders
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Cisco Systems Inc.
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Arista Networks Inc.
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VMware Inc
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Huawei Technologies Co. Ltd.
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NVIDIA Corporation
*Disclaimer: Major Players sorted in no particular order
Sweden Data Center Networking Market News
- April 2023: IBM introduced new single-frame and rack-mounting configurations of IBM z16 and IBM LinuxONE 4 to expand their capabilities in a broader range of data centers. These options, based on IBM's Telum processor, enable clients to adapt to the digital economy and are sustainably designed for highly efficient data centers.
- January 2023: Dell Inc. responded to the growing demands of today's data center environment by introducing the Power Switch S520ON 25GbE fixed switches. These switches consist of All Technologies' latest disaggregated hardware switching and networking solutions, offering state-of-the-art high-density 25GbE ports and a wide range of functionality. They provide optimum flexibility and cost-effectiveness for web 2.0, cloud service providers, and enterprises facing demanding compute and storage network traffic environments.
Sweden Data Center Networking Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Demand of Clolud Computing Capabilities Drives the Market Growth
4.2.2 Adoption of Green Practices in Data Centers Drives the Market Growth
4.3 Market Restraints
4.3.1 Skilled Workforce Availability and Security Concerns
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of COVID-19 Impact
5. MARKET SEGMENTATION
5.1 By Component
5.1.1 By Product
5.1.1.1 Ethernet Switches
5.1.1.2 Router
5.1.1.3 Storage Area Network (SAN)
5.1.1.4 Application Delivery Controller (ADC)
5.1.1.5 Other Networking Equipment
5.1.2 By Services
5.1.2.1 Installation & Integration
5.1.2.2 Training & Consulting
5.1.2.3 Support & Maintenance
5.2 End-User
5.2.1 IT & Telecommunication
5.2.2 BFSI
5.2.3 Government
5.2.4 Media & Entertainment
5.2.5 Other End-Users
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Cisco Systems Inc.
6.1.2 Arista Networks Inc.
6.1.3 VMware Inc
6.1.4 Huawei Technologies Co. Ltd.
6.1.5 NVIDIA Corporation
6.1.6 Dell Inc.
6.1.7 NEC Corporation
6.1.8 IBM Corporation
6.1.9 HP Development Company, L.P.
6.1.10 Intel Corporation
6.1.11 Schneider Electric
6.1.12 Siemens
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Sweden Data Center Networking Industry Segmentation
Data center networking refers to the set of technologies, protocols, and hardware used to connect physical and network-based devices and manage the network infrastructure, storage, and processing of applications and data. Data center networking is very critical for 100% uptime of data centers. In the current web-connected world, business workloads are executed on single computers, hence leading to the need for data center networking. Networks provide servers, clients, applications, and middleware with a standard plan to stage the execution of workloads and also to manage access to the data produced.
The Sweden data center networking market is segmented by component type (product (Ethernet switches, routers, storage area network (SAN), application delivery controller (ADC), and other networking equipment) and services (installation & integration, training & consulting, support & maintenance)), and end-user (IT & telecommunication, BFSI, government, and media & entertainment, and other end-users).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Component | |||||||
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| End-User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Media & Entertainment | |
| Other End-Users |
Sweden Data Center Networking Market Research FAQs
How big is the Sweden Data Center Networking Market?
The Sweden Data Center Networking Market size is expected to reach USD 218.16 million in 2024 and grow at a CAGR of 3.89% to reach USD 264.03 million by 2029.
What is the current Sweden Data Center Networking Market size?
In 2024, the Sweden Data Center Networking Market size is expected to reach USD 218.16 million.
Who are the key players in Sweden Data Center Networking Market?
Cisco Systems Inc., Arista Networks Inc., VMware Inc, Huawei Technologies Co. Ltd. and NVIDIA Corporation are the major companies operating in the Sweden Data Center Networking Market.
What years does this Sweden Data Center Networking Market cover, and what was the market size in 2023?
In 2023, the Sweden Data Center Networking Market size was estimated at USD 209.67 million. The report covers the Sweden Data Center Networking Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Sweden Data Center Networking Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Sweden Data Center Networking Industry Report
Statistics for the 2024 Sweden Data Center Networking market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Sweden Data Center Networking analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
