Market Trends of north america data center Industry
The expansion of network coverage and the continued high adoption of 4G and 5G expansion to drive market growth
- The unlimited data rates, enhanced 5G network coverage, and increased network capacity drew more and more new 5G subscribers in 2021. With the adoption of gaming, XR, and video-based apps anticipated to rise, the amount of data created per minute of use was expected to increase considerably. To satisfy users, these experiences required greater video resolutions, more uplink traffic, and data from devices offloaded to cloud computing resources. North America was projected to have the highest 5G subscription penetration, reaching 90%, by 2028 compared to all other areas.
- Popular cities with early 5G rollouts set the pace for traffic growth during the forecast period in 2021. 5G was expected to account for more than 10% of mobile data traffic in the upcoming years. The expansion of coverage and the continued high adoption of 4G, which was related to an increase in smartphone subscriptions and average data usage per smartphone, were driving traffic growth. For instance, as of 2021, there were about 328 million smartphone owners in the United States, and by 2027, there will be 358 million smartphone subscriptions in North America.
- The use of high bandwidth services was made possible by the expansion of LTE availability. About 75% of people who used mobile services visited the internet on a weekly basis, with more than half of them doing so from their mobile devices. The second-largest category was social networking, with more than 60% of mobile users visiting a social networking site at least once each week. The usage equated to 15 to 30 minutes of daily video streaming in 2021. Increased traffic was also expected to result from social networking and other apps. In 2021, monthly mobile data traffic was anticipated to reach 6 GB and increase to more than 30 GB by 2029.
Understand The Key Trends Shaping This Market
Download Sample
5G network expansion and increased sales of 5G smartphones will boost the market growth
- Smartphone adoption has some room to expand. By the end of 2021, smartphones accounted for 83% of mobile connections in North America. With 30 million additional smartphone connections anticipated by 2025, the migration away from legacy networks (2G and 3G) will continue to support smartphone adoption in the coming years. The expansion of mobile data traffic in North America, which was anticipated to more than triple by 2027, will continue to depend heavily on rising smartphone penetration. Since Apple unveiled the first iPhone in 2007, the popularity of smartphones has skyrocketed. By 2016, it was expected that 43.5% of all Americans would own an iPhone.
- In the United States, where 5G made up approximately one out of every four mobile connections in 2021, 5G was starting to become widely used. The economic recovery following the pandemic, increased sales of 5G smartphones, and general marketing initiatives had all helped increase momentum. Consumer interest in upgrading to 5G was increasing, and current 5G customers were showing an increased interest in expanding their 5G plans to include content and services like streaming video, music, gaming, live sports, and cloud storage. This was expected to encourage more people to purchase smartphones, increasing the number of smartphone users.
- Almost 90% of people use the internet in North America. In the United States and Canada, Facebook had a combined 266 million monthly active users (MAU). This demonstrated the widespread use of smartphones in the region, which essentially necessitates the use of data centers for storage since they demand real-time processing of sizable data chunks. A rise in data centers was expected to be seen in the region during the anticipated period as a result of good smartphone growth in the region.
Understand The Key Trends Shaping This Market
Download Sample
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Phasing out of 2G and 3G network and adoption of 4G and 5G by consumers to boost market growth
- Surge in adoption of FTTH technology boost the data center market
- Government initiatives to promote digital infrastructure to drive the growth of data centers in the country
