Market Trends of Sweden Data Center Rack Industry
Full Rack accounted for majority market share in 2022
- Sweden is one of the leading globally connected countries in terms of the Internet and has a high consumer e-commerce maturity. Online shoppers in Sweden in 2021 will be 8 million, with the e-commerce industry accounting for 80% of them.
- Services purchased online accounted for only 8.7% of the retail market in past years, after which its share will almost double to 16%, driving the growth of online shopping in the region. It shows that it is being accepted. These figures demonstrate the growing demand for data processing devices in the e-commerce consumer industry segment of the market.
- 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 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.
- With large amounts of data generated every day, 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.
- Initially, the focus was solely on data center rack infrastructure, with only size and cost considered during deployment. However, the introduction of high-density applications by various end-users, such as online banking, IT and telecommunications, media, and entertainment, creates opportunities for increased usage of full racks of data centers.
Understand The Key Trends Shaping This Market
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Cloud sector is the fastest growing sector in the country
- Cloud computing makes information, applications, and services accessible to multiple customers over the Internet. The Swedish data center industry is starting to receive attractive investments from hyperscale cloud providers such as Google, Microsoft, and Amazon. In October 2022, Google Cloud announced plans to build its first cloud region in Sweden to drive sustainable business transformation. In 2021, 54 cloud computing start-ups and companies will be established in Sweden.
- The prevalence of wireless devices and increasing connectivity to the Internet has increased the demand for online cloud platforms. Rising digital penetration of computers and other devices, rising from 89.72% in 2017 to 94.36% in 2022, boosted traffic on broadband channels, further supporting the growth of cloud computing services. Such factors are expected to increase the demand for computing and storage devices in the cloud market segment.
- Procurement of renewable energy, government efforts to build smart cities that increase the use of edge computing, digital economy, and rising industrial technology spending are expected to drive investment in Sweden's data centers.
- Furthermore, over 65% of Swedish companies are investing in digitalization. The trend of digitization is expected to continue during the forecast period, especially in the public sector. Demand is primarily driven by the introduction of new delivery models such as cloud computing, big data, and the Internet of Things (IoT). The increasing use of smartphones and tablets in business has become increasingly important to the public sector and e-commerce market.
