Market Trends of austria data center Industry
Rise in the urban population and 5G access is boosting the market demand
- The total number of smartphone users in the country was 7.8 million in 2022, and it is expected to witness a CAGR of 1.2% during the forecast period to reach 8.4 million users by 2029.
- Smartphone users are rising due to the growing demand for mobile internet services and applications and the real-time need for information exchange. Consumer behavior has been impacted by the quick adoption of the Internet and smartphone technology in a variety of businesses. For instance, from 2016 to 2021, the purchasing power per person in Austria increased from 53,346 thousand to 54,121 thousand. As a result, more people were able to purchase smartphones, increasing the number of smartphone users.
- The rise in the urban population increased consumer awareness regarding the usage of mobile devices. This, combined with the surging integration of AR technology, cashless payments, and expanding over-the-top (OTT) platform subscriptions, is expected to drive smartphone users in the future. Austria's urban population for 2021 was 5.2 million, a 0.86% increase from 2020. The urban population was 58.3% in 2018 and rose to 59.3% in 2022. Users in Austria see a better 5G experience in urban areas, with an average download speed of 162.3 Mbps. The abovementioned instances suggest the rising use of smartphones in Austria, which results in a constant increase in data. This necessitates a growing amount of storage space to accommodate the uncontrollable flow of data and the need for real-time processing and analysis. Data centers must manage the sheer amount of data. Thus, the requirement for extra racks in data centers in Austria may increase as the number of smartphone users rises.
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Surge in mobile phone and adoption of digital banking, social media usage increases the demand for the market
- In 2022, the nation's average data speed was expected to be 63.05 Mbps. 3 (Drei) Austria began rolling out its 4G LTE network in 2014, and 4G availability reached 74.3% with a 27.84 Mbps download speed by 2017. Furthermore, by the end of 2020, 5G was launched in all provincial capitals. Since the launch of both of the services, 4G reached 89.6 Mbps in 2022, and 5G reached 162.4 Mbps by 2022.
- 3(Drei), A1 Telekom, and Magenta are the major players expected to shut down 3G by 2024. 2G is expected to outlive 3G and is expected to be shut down by 2030. The “5G strategy for Austria” document was approved in April 2018, and the service is expected to reach main traffic roads by the end of 2023, followed by nationwide coverage for two years.
- The increased average speed and the overall connection are paving the way for end-users, such as e-commerce, media and entertainment, and online banking. For instance, the banking industry is mostly driven by the digital transformation of organizations. The country's growing mobile phone and high-speed internet markets influenced the early adoption of digital banking in Austria and are expanding steadily with the introduction of mobile banking and apps. Digital payments make up approximately EUR 10,000 million per year, and mobile payments are estimated at around EUR 2,192 million per year.
- Additionally, the number of social media users in Austria was equivalent to 79.9% of the total population in January 2021, and it rose to 81.4% by the start of 2022. Daily social media usage totaled 90 minutes per day in Austria. Thus, the rise in mobile data speeds is expected to lead to more service-oriented applications in end-user industries, which are expected to drive the growth of data processing facilities in the coming years.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Growing inclusion of online businesses along with streaming and online TV adoption is leads to the data center demand
- Government investment towards passive infrastructure for fixed broadband access is leading to data center demand
- Surge in adoption of FTTH/B services and expansion in fiber-optic network is leading to the data center growth
