Market Trends of Sweden Data Center Server Industry
IT & Telecommunication Segment To Hold A Major Share In The Market
- Sweden is a connected country with a strong level of digital readiness with a high penetration rate for internet usage, social media engagement, mobile connections, adoption of 5G, online shopping, and digital payments. For instance, according to GSMA, in Q2 2022, Sweden had the fastest 5G median download speed in the Nordic region, partially due to the country's digitalization strategy.
- Improved device capabilities, increased data-intensive content, and increased data consumption due to ongoing network performance improvements are the significant causes of the growth in mobile data traffic per smartphone. For instance, the number of Facebook users was 7.9 million in 2021, and it increased to 8.7 million in 2022, which accounted for 84.4% of the population. The number of Instagram users increased from 5.03 million (2021) to 6.06 million (2022). The Swedish Association of Local Authorities and Regions (SALAR) also developed a vision for a Swedish e-health strategy that invests 1.21 billion annually in healthcare IT.
- Operators are focusing on their network investments to expand 5G network coverage across Sweden. A joint venture between Tele2 and Telenor, Net4Mobility, focuses on accelerating the 5G network. Tele2 and Telenor Sweden agreed to extend the reach of Net4Mobility to 90% of the Swedish population by the end of 2023 and the remaining 20% in 2024. By 2025, Telia Sweden plans to have coverage for its 5G network that is equivalent to that of its 4G network by working with longtime partner Ericsson. By 2023, it is intended to have 5G coverage for more than 90% of the population. In the long run, this is expected to be extended to 90% geographic and more than 99% population coverage.
- An increase in demand for data consumption by households and businesses drives the growth of broadband connectivity in Sweden. Owing to the growing demand for broadband connectivity, government initiatives impetus the growth of connectivity.
- Factors such as an increase in data consumption, improved device capabilities, and growth of digitalization across all end users lead to an increase in the number of servers in data centers.
Understand The Key Trends Shaping This Market
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Blade Servers To Grow At A Faster Pace In The Coming Years
- Reduced power consumption and high processing power contribute to the blade servers in data centers.
- Single or multiple server blades can be inserted or removed without distressing another running system. It reduces hardware costs, which is likely to entice industry players to adopt the technology, thereby fueling market growth. Additionally, each server blade does not consist of a distinct infrastructure and chassis, owing to which the product is relatively cheaper as compared to other solutions.
- To cater to end-user needs, top companies such as Cisco and Dell are focusing on blade servers in data centers.
- The growing adoption of technologies such as cloud computing, artificial intelligence (AI), IT services, Internet penetration, and social media users by businesses are propelling the use of servers in data centers.
- Blade servers are generally designed with energy efficiency in mind, helping to reduce power consumption and operational costs.
