Market Trends of switzerland data center Industry
Increasing consumption of data in social media usage, video-on-demand and online gaming drives the demand for market
- The total data traffic per smartphone in the country is expected to witness a CAGR of 9.6% during the forecast period to reach a value of 44.5 GB by 2029. The consumption of data by multiple end users motivates this trend. For instance, as of 2021, in Switzerland, time spent on the internet was 3.6 hours per day by young people, and the average time spent on smartphones was 2 hours and 29 minutes per day.
- Social media users in Switzerland were 7.54 million, increasing by 440 thousand between 2021 and 2022, indicating a 6.2% growth. Considering the above factors, such as an increase in data consumption, time spent on smartphones, and growth of digitalization across all end users, leads to the rise of data traffic per smartphone.
- The growing average data volume due to rising OTT subscription numbers 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. In 2020, 42% of Swiss consumers accessed pay-per-view video-on-demand services like Netflix, Swisscom TV, and Amazon Prime. This represented an increase of 33% over the prior year, 2019.
- The mobile games business has tremendous growth potential in the coming year, despite already being the largest video game segment. The mobile gaming phenomenon Pokémon Go, games like Harry Potter: Wizards Unite, and Nintendo's expanding support for mobile games are key growth drivers for the industry. Additionally, the expansion of the market is greatly influenced by the mobile versions of the well-known online games Fortnite and PUBG. Thus, the needs of the end users are changing, and the demand for more data storage contributes to the growth of the data center market in Switzerland.
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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 is expected to witness a CAGR of 1.6% during the forecast period to reach a value of 9 million by 2029. Digital usage is expanding rapidly in Switzerland. Consumer behavior has been impacted by the quick adoption of the internet and smartphone technology in various businesses. For instance, purchasing power parity (PPP) increased from USD 68.8 thousand in 2016 to USD 71 thousand in 2021. As a result, more people can purchase smartphones, which results in a growing number of smartphone users.
- The internet penetration of the country increased from 89% in 2016 to 96% in 2021, while at the same time, the number of smartphone users increased from 6.9 million in 2016 to 7.9 million in 2021. Owing to such extensive use, digital payment services were promoted, and their application increased due to the COVID-19 pandemic.
- Due to its high GDP and location between France, Italy, and Germany, Switzerland has a significant market for luxury goods and a high demand for cross-border e-commerce. Cash is still common, while cards are frequently used in Switzerland. Invoices are famous for e-commerce payments, while TWINT is a new and increasingly popular local payment method with 3 million users. Used for both e-commerce and at the point of sale, TWINT combines mobile payments with QR technology, which is predicted to have a long-term impact on the market. The rising use of smartphones in the Swiss market results in a constant increase in data, necessitating an increase in storage space and data centers must manage the sheer amount of data. Thus, the requirement for racks in Swiss data centers may increase as the number of smartphone users rises.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increasing network investments to expand 5G network by provider such as Ericsson and increase in online service is boosting the market demand
- Increasing fiber cable network across country with increasing investments by provider such as Lumen Technologies leads to the growth in the market
- Surge in the usage of FTTx and FTTTH in household and enterprises is boosting the market demand
