Market Trends of denmark data center Industry
Increasing consumption of data in online shopping, streaming services drives the demand for data processing and storage facilities
- The total data traffic per smartphone in the country was 12.3 GB in 2022, which is expected to reach 28.5 GB by 2029, recording a CAGR of 12.7% during the forecast period.
- The consumption of data by multiple end users motivates this trend. In 2021, almost 70% of online shoppers purchased clothing and sports equipment, illustrating the popularity of fashion e-commerce in Denmark.
- The growing average data volume due to rising OTT subscriptions for smartphones and mobile gaming is further driving the demand for data processing and storage facilities for the live streaming of games and video content. The Danish market saw an 11.8% growth in total consumer spending on video in 2021 compared to 2020. The Danish video market represented a value of more than DKK 4,591 million (EUR 607.8 million) in 2021. OTT subscriptions increased from 2.1 million in 2016 to 5.7 million in 2021. Since the needs of the end users are changing, the demand for more data storage is resulting in the need for more servers in data centers, contributing to the growth of the data center market in Denmark.
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Rising smartphone ownership and increase in number of app downloads boost the market growth
- The total number of smartphone users in the country was 5.5 million in 2022, which is expected to reach 5.9 million, recording a CAGR of 1.1% during the forecast period.
- Digital usage is expanding rapidly in Denmark. Mobile phones are becoming crucial in connecting people with brands, regardless of industry, with customers in the Nordic region using their phones for banking and communication.
- 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 per capita purchasing power per person in Denmark increased from USD 54,185.01 to USD 57,962.6. As a result, more people can purchase smartphones, increasing the number of smartphone users. The country's internet penetration increased from 97% in 2017 to 99% in 2021. At the same time, the number of smartphone users increased from 4.75 million in 2017 to 5.47 million in 2021. E-commerce sales in Denmark increased from EUR 19.5 billion in 2019 to USD 21.45 billion in 2020, suggesting that people are now more inclined to prefer cashless transactions, which is predicted to have a long-term impact on the market.
- Consequently, there are more smartphone users in Denmark. The rising use of smartphones in Denmark's market results in a constant increase in data, necessitating a growing amount of storage space to accommodate this uncontrollable flow of data with the need for real-time processing and analysis. Data centers must manage the sheer amount of data. Thus, the requirement for extra racks in French data centers may increase as the number of smartphone users rises.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increasing investment in 5G services by provider such as TDC, Ericsson leads to the market demand
- Increasing investment in rolling fiber cable by provider such as Wizer and Telenor leads to the market demand
- Low cost fiber broadband subscription fees with increasing FTTx adoption leads to the market demand
