Market Trends of italy data center Industry
Increment in the subscriber penetration rate is boosting the market demand
- Italy has increasing smartphone usage in the country, with a smartphone adoption rate expected to increase from 77% in 2021 to 81% in 2025. Despite a decreasing population, the expected increment in the subscriber penetration rate from 89% in 2021 to 90% by 2025 reflects a promising scenario for adoption.
- However, the decreasing population with a negative growth rate and higher average age play a crucial role in determining device usage in the country. The data from ISTAT highlighted the average age of the population in 2021 to be 45.9 years, compared to 44.9 years in 2017.
- Italy has a unique demographical scenario regarding digitalization and adopting the latest telecommunications technology. The country was among the initial ones to deploy a 3G network and has been ahead of the international timeline. The government legislation on the 'Right To Repair' and 'Planned Obsolescence Law' would allow users to repair their phones more, which may help them avoid expenditure on new smartphones. This may further hamper the growth of the number of new smartphones in the market. This may further lead to a decrease in data generation due to lesser data-generating points in Italy, affecting the demand for data centers in the region.
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Investments in the country's FTTH broadband service is boosting the market demand
- Italy has been a significant consumer of broadband services, with companies offering broadband and ultra-broadband services. The overall broadband connections in the country increased from about 62.4% in 2011 to about 93.5% by the end of 2021. The pandemic influenced the restructuring of the services, creating significant demand to utilize the infrastructure for broadband services in Italy. This was also evident in the increase in data traffic by about 150%, from 17,700 to more than 44,200 PB from 2017 to 2021, which further highlights the future growth prospects.
- Fiber connectivity in the region increased from 1.3% in 2011 to 64.4% in 2018, including FTTH and FTTC services. The data from AGCOM highlighted the monthly data consumption per broadband line from 96.6 GB in 2017 to about 210 GB in 2019. Broadband access through residential and business ultra-broadband services by the end of 2021 reached 18.7 million units, accounting for about 31.7 lines for every 100 inhabitants.
- The investments in the country's FTTH broadband services would shape the market during the forecast period. With the significant investments in the past, the infrastructure was greatly benefitted, which would be carried forward by the operators accordingly. In April 2022, prominent players like Telecom Italia's FiberCop and TLC Telecomunicazioni signed an agreement to develop FTTH access jointly. The deep penetration of broadband services availed by the Italian population may help data center facilities to deliver data faster and leverage the network to interact with internet exchanges and telecommunication operators, as required.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Surge in 5G smartphones is boosting the market growth
- Increase in fiber deployment and significant number of internet exchanges is driving the market demand
- Increase in network infrastructure in rural and urban area of the region drives the market demand
