Market Trends of sweden data center Industry
Rising smartphone ownership and increasing in number of app downloads to boost the market growth
- The total number of smartphone users in Sweden was 9.46 million in 2022, and it is expected to witness a CAGR of 1.6% during the forecast period to reach a total number of 10.6 million by 2029.
- Sweden is a connected country with a strong level of digital readiness with a high penetration rate for internet usage, social media engagement, mobile connections, adoption of 5G, online shopping, and digital payments. For instance, according to GSMA, in Q2 2022, Sweden had the fastest 5G median download speed in the Nordic region, partially due to the country's digitalization strategy.
- In 2021, there were around 8 million users of e-commerce in Sweden, with a penetration rate of 80%. Swedish eCommerce 2021, an annual survey by payment provider Nets, indicated that overall spending on online shopping in Sweden increased by 10% in 2021, from about USD 20.3 billion (in 2020) to USD 22.3 billion. Considering the above factors, the number of smartphone users in Sweden is expected to grow over the period, driving the growth of the data center market in Sweden.
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Increasing network investments to expand 5G network by provider such as Tele2 and Telenor, Net4Mobility and Telia Sweden is boosting the market demand
- The four major operators in the mobile network are 3 Sweden, Tele2, Telenor, and Telia. In 2018, Telia and Ericsson introduced the first 5G network program in Sweden at Stockholm's KTH Royal Institute of Technology, which stated that the commercial launch of 5G was in 2020. Swedish providers excel in 5G speeds but not so much regarding 5G availability, which was only 10% as of Q2 2022. In 2021, over one million subscriptions used the 5G mobile network four times more than in 2019), equal to 8% of all mobile subscriptions.
- Operators are focusing on their network investments to expand 5G network coverage across Sweden. A joint venture between Tele2 and Telenor, Net4Mobility, focuses on accelerating the 5G network. Tele2 and Telenor Sweden agreed to extend the reach of Net4Mobility to 90% of the Swedish population by the end of 2023 and the remaining 20% in 2024. By 2025, Telia Sweden plans to have coverage for its 5G network that is equivalent to that of its 4G network by working with longtime partner Ericsson. By 2023, it is intended to have 5G coverage for more than 90% of the population. In the long run, this is expected to be extended to 90% geographic and more than 99% population coverage.
- In 2022, 3 Sweden completed its 5G deployment on its current network. The company planned for the upgradation of its core to 5G for lower latency (2022-23), expanded and densified its network (2023–2024), and rolled out network slicing to meet the demands of businesses, including hospitals, airports, and factories. Such aspects show a promising growth of mobile data speed in the upcoming years.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increasing consumption of data in social media usage and growth of digitization drives the demand for market
- Increasing fiber cable network across country with increasing investments by provider such as GlobalConnect leads to the growth in the market
- Surge in the usage of FTTx in household and enterprises is boosting the market demand
