Switzerland Data Center Server - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2030

Switzerland Data Center Server - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2030

The Switzerland data center server market is projected to register a CAGR of 5.7%.

Key Highlights

• The upcoming IT load capacity of the Switzerland data center construction market is expected to reach 676.2 MW by 2029.
• The country's construction of raised floor area is expected to increase by 2.6 million sq. ft by 2029.
• The country's total number of racks to be installed is expected to reach 130,041 units by 2029. Zurich is expected to house the maximum number of racks by 2029.
• In 2022, there were 93 colocation data center facilities in Russia. Moscow is the major hotspot, followed by St. Petersburg and others in the country. Some factors contributing to the growth of the data centers in the country include cloud adoption, an increase in broadband connectivity, smartphone penetration, and growing digitization.

Switzerland Data Center Server Market Trends

IT and Telecom to Have Significant Market Share

• The cloud segment registered an IT load capacity of 70.93 MW in 2022. It is projected to exhibit a CAGR of 7.19% and surpass a capacity of 117.96 MW by 2029. On the other hand, the e-commerce and BFSI industries are estimated to record CAGRs of 7.17% and 7.21% to reach capacities of 89.07 MW and 82.45 MW, respectively, by 2029.
• Among end-user industries, cloud (19.6%) and e-commerce (14.80%) are expected to hold the highest market share, while the banking, financial services, and insurance (BFSI) (13.7%) and manufacturing (11.6%) industries are expected to witness the fastest growth over the forecast period.
• The Swiss data center market has also been driven by growing cloud use across companies because of their increasing integration of emerging technologies like artificial intelligence, big data, and blockchain. Cloud computing (anything-as-a-service (XaaS) continues to be one of the most important trends in the Swiss IT industry. However, while most cloud solutions are still deployed in-house (besides traditional outsourcing and managed services), software-as-a-service (SaaS), in particular, is becoming increasingly important as a procurement model.
• In 2019, private clouds were most commonly used (63%), and public and hybrid clouds were on par with shares of 28% each. However, hybrid scenarios continue to gain popularity as companies seek to offer an IT services mix customized as per individual preferences. Considering the above developments, the cloud data center segment is expected to account for a majority of capacity in the Swiss data center market by 2029.

Blade Server to Have The Highest Market Share

• The type of server that's designed to be in a data center is a blade server. These servers share a common chassis or enclosure, making them thinner and more compact. Space efficiency, modularity, reduced cable fragmentation, efficient cooling, centralized management, frequency availability, and energy efficiency are some of the main features and benefits of blade servers.
• 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, the top companies are focusing on blade servers in data centers. The prominent companies that manufacture blade servers in Switzerland include Dell (PowerEdge M Series), HPE (ProLiant BL Series), Cisco (UCS Blade Servers), and Lenovo (ThinkSystem Blade Servers), among others.
• The growing adoption of technologies such as cloud computing, artificial intelligence (AI), and IT services by businesses is propelling the use of servers in data centers. This sector is driven by the increased demand for streaming solutions and hyperscale data centers. Hyperscale computing, which is considered to be cost-effective in terms of enabling applications for large amounts of data, relies on the highly scalable server architecture and virtual networks that are becoming more and more popular.
• In the future, the growing Internet penetration and fiber connectivity will push the country digitally, which could propel Switzerland's digital economy. For instance, the evolution of healthcare would focus on reengineering clinical care and operations around digital health and the pervasive, real-time use of data and advanced analytics to achieve these goals. Such achievements would require storing a large amount of data, driving the need for data center blade servers over the forecast period.
• Moreover, Zurich is a significant financial hub in Europe. The banking industry produces about a third of the city's wealth and a quarter of its jobs. The Zurich economy is heavily based on various creative small and large firms and sectors.
• Zurich is an ideal place to locate for fintech, energy and environment, and food tech startups. Zurich has 117 fintech startups, 53 energy and environment startups, and 47 food tech startups. Thus, the increasing number of startups is expected to complement the data center market in the region and drive opportunities for the vendors studied in the market.

Switzerland Data Center Server Industry Overview

The Switzerland data center server market is moderately consolidated, with significant companies such as Dell Inc., International Business Machines (IBM) Corporation, Huawei Technologies Co. Ltd., Cisco Systems Inc. and Lenovo Group Limited.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support