Italy Data Center Storage - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
The Italy Data Center Storage Market size is estimated at USD 0.46 billion in 2024, and is expected to reach USD 0.85 billion by 2029, growing at a CAGR of 10.63% during the forecast period (2024-2029).
Key Highlights
The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.
Under Construction IT Load Capacity: The upcoming IT load capacity of the Italy data center market is expected to reach more than 800 MW by 2029.
Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase above 5.3 million sq. ft by 2029.
Planned Racks: The country's total number of racks to be installed is expected to reach above 268K units by 2029. Greater Milan is expected to house the maximum number of racks by 2029.
Planned Submarine Cables: There are close to 31 submarine cable systems connecting Italy, and many are under construction. One such submarine cable that is estimated to start service in 2024 is Blue, which stretches over 4,696 Kilometers with landing points from Genoa, Italy; Golfo Aranci, Italy; Palermo, Italy; and Rome, Italy.
An increasing need for data storage has resulted in an upsurge in the number of data centers nationwide. Several factors contribute to the demand for data centers and their growth within Italy, which is reflected by the country's evolving IT landscape, business activities, and technological initiatives.
The key drivers that propel the development of data centers in the nation include digital transformation, cloud computing adoption, e-commerce & digital services, renewable energy & sustainability, and smart cities & IoT initiatives. Hence, such factors are expected to drive market growth during the forecast period.
Italy Data Center Storage Market Trends
IT & Telecommunication Segment holds the major share.
Cloud services are growing in popularity in Italy. The need for big data integration and the demand for more remote work and data migration to the cloud are driving the use of domestic cloud data centers.
Additionally, Italy's data center providers are gradually collaborating with local and international technology companies to offer a wide range of services to their customers.
Cloud infrastructure helps companies manage fluctuating demand and reduces IT expenditure. It also provides companies with flexibility where employees working in various geographical locations can access files on their system from the cloud. The market share for cloud as an end user is expected to reach 24% by 2029 from the market share of 23.12% in 2022.
Features such as increased scalability, flexibility, and accommodating website traffic fluctuations are among the reasons businesses adopted the cloud service. Businesses and governments have increasingly adopted cloud services to promote digitization services in the country. The Italian government has set a budget of around EUR 1.9 billion (USD 2 billion) for the next five years to promote digitization services. As the Italian government transitioned to the cloud system, taxpayers saved around EUR 87 million (USD 91.6 million) annually.
The telecom segment uses a hybrid cloud infrastructure combining public and private cloud services in varying phases. This helps them manage traffic fluctuations and deliver optimum performance. Cloud services have helped telecoms increase efficiency in service deployment and reduce downtime.
Further, Increased bandwidth speeds of 37.89 Mbps offered on 4G led to mobile data consumption at 13.3 GB/month in 2022. It is expected to increase from 15.2 GB/month in 2023 to 26.7 GB/month in 2029. In addition, key players in the market focusing on expanding its 5G footprint and download speeds across the region. Factors that catalyze data consumption increase are evolving 5G technology, online gaming, banking services, OTT, online shopping, and others. Such instances in the market are expected to create more demand for data center storage in the coming years.
Hybrid Storage is Expected to Hold a Significant Market Share
The combination of on-premises and cloud storage solutions is called hybrid storage in data centers. This approach leverages the strengths of both environments, offering the flexibility to store and manage data on-site and in the cloud.
In Italy, the digital transformation is underway in a variety of sectors. Due to the growing adoption of digital technologies such as data analytics, Internet of Things, or Data Analytics, businesses are responding to a need for storage solutions that can be integrated with both on-premise and cloud environments.
Hybrid storage may prove beneficial to businesses working with international partners or operations in Italy. To achieve seamless collaboration across borders, it enables them to collect and access data on a local basis as well as use cloud storage.
Furthermore, factors such as online shopping would contribute to the increasing generation of data and processing facilities. As users grow more inclined to online shopping with attractive deals offered, this would lead to a rise in digital payment services and website traffic, thus increasing data consumption. The total number of unique users of e-commerce and applications in Italy increased from 35.5 million in September 2020 to 38.1 million in September 2022. All these factors would contribute to a significant increase in consumption, boosting the demand for data centers and contributing to segmental growth.
The key players in the market focus on improving the data center storage solutions to meet the market demand. In July 2023, Hitachi Vantara, a prominent infrastructure, data management, and digital solutions subsidiary of Hitachi, Ltd., announced its collaboration with Microsoft to launch the Hitachi Unified Compute Platform (UCP) for Azure Stack HCI. The powerful and streamlined hybrid cloud solution increases business flexibility. It delivers enhanced cloud management across various environments, including data centers, branch offices, and edge computing, to give businesses greater visibility and control over how their data is stored, managed, and used.
Italy Data Center Storage Industry Overview
The upcoming DC construction projects in the country are poised to significantly boost the demand for the Italy Data Center Storage Market in the coming years. The market is moderately consolidated, featuring key players such as Dell Inc., Hewlett Packard Enterprise, NetApp Inc., Huawei Technologies Co. Ltd., and Hitachi Vantara LLC. These industry leaders, commanding a substantial market share, are strategically focused on expanding their regional customer base.
In June 2023, Hitachi Vantara, a distinguished subsidiary of Hitachi, Ltd., specializing in infrastructure, data management, and digital solutions, announced two global partnership agreements with Cisco. These collaborations will facilitate the seamless integration of Cisco technologies into Hitachi Vantara's storage products, positioning the company as a leading provider of data center infrastructure and hybrid cloud-managed services. This move will further solidify its presence in the Vantara Service Provider and Technology Integrator (STI) Partner programs.
Also, in June 2023, Pure Storage, a significant player in data storage technology and services, revealed the expansion of its Pure//E family of products with the introduction of FlashArray//E. This new addition to the product line is designed to offer customers an impressive 80% reduction in energy and space costs, along with a 60% decrease in operational costs compared to traditional disk storage. Additionally, FlashArray//E boasts an 85% reduction in e-waste, making it a sustainable choice for environmentally conscious businesses.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Key Highlights
The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.
Under Construction IT Load Capacity: The upcoming IT load capacity of the Italy data center market is expected to reach more than 800 MW by 2029.
Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase above 5.3 million sq. ft by 2029.
Planned Racks: The country's total number of racks to be installed is expected to reach above 268K units by 2029. Greater Milan is expected to house the maximum number of racks by 2029.
Planned Submarine Cables: There are close to 31 submarine cable systems connecting Italy, and many are under construction. One such submarine cable that is estimated to start service in 2024 is Blue, which stretches over 4,696 Kilometers with landing points from Genoa, Italy; Golfo Aranci, Italy; Palermo, Italy; and Rome, Italy.
An increasing need for data storage has resulted in an upsurge in the number of data centers nationwide. Several factors contribute to the demand for data centers and their growth within Italy, which is reflected by the country's evolving IT landscape, business activities, and technological initiatives.
The key drivers that propel the development of data centers in the nation include digital transformation, cloud computing adoption, e-commerce & digital services, renewable energy & sustainability, and smart cities & IoT initiatives. Hence, such factors are expected to drive market growth during the forecast period.
Italy Data Center Storage Market Trends
IT & Telecommunication Segment holds the major share.
Cloud services are growing in popularity in Italy. The need for big data integration and the demand for more remote work and data migration to the cloud are driving the use of domestic cloud data centers.
Additionally, Italy's data center providers are gradually collaborating with local and international technology companies to offer a wide range of services to their customers.
Cloud infrastructure helps companies manage fluctuating demand and reduces IT expenditure. It also provides companies with flexibility where employees working in various geographical locations can access files on their system from the cloud. The market share for cloud as an end user is expected to reach 24% by 2029 from the market share of 23.12% in 2022.
Features such as increased scalability, flexibility, and accommodating website traffic fluctuations are among the reasons businesses adopted the cloud service. Businesses and governments have increasingly adopted cloud services to promote digitization services in the country. The Italian government has set a budget of around EUR 1.9 billion (USD 2 billion) for the next five years to promote digitization services. As the Italian government transitioned to the cloud system, taxpayers saved around EUR 87 million (USD 91.6 million) annually.
The telecom segment uses a hybrid cloud infrastructure combining public and private cloud services in varying phases. This helps them manage traffic fluctuations and deliver optimum performance. Cloud services have helped telecoms increase efficiency in service deployment and reduce downtime.
Further, Increased bandwidth speeds of 37.89 Mbps offered on 4G led to mobile data consumption at 13.3 GB/month in 2022. It is expected to increase from 15.2 GB/month in 2023 to 26.7 GB/month in 2029. In addition, key players in the market focusing on expanding its 5G footprint and download speeds across the region. Factors that catalyze data consumption increase are evolving 5G technology, online gaming, banking services, OTT, online shopping, and others. Such instances in the market are expected to create more demand for data center storage in the coming years.
Hybrid Storage is Expected to Hold a Significant Market Share
The combination of on-premises and cloud storage solutions is called hybrid storage in data centers. This approach leverages the strengths of both environments, offering the flexibility to store and manage data on-site and in the cloud.
In Italy, the digital transformation is underway in a variety of sectors. Due to the growing adoption of digital technologies such as data analytics, Internet of Things, or Data Analytics, businesses are responding to a need for storage solutions that can be integrated with both on-premise and cloud environments.
Hybrid storage may prove beneficial to businesses working with international partners or operations in Italy. To achieve seamless collaboration across borders, it enables them to collect and access data on a local basis as well as use cloud storage.
Furthermore, factors such as online shopping would contribute to the increasing generation of data and processing facilities. As users grow more inclined to online shopping with attractive deals offered, this would lead to a rise in digital payment services and website traffic, thus increasing data consumption. The total number of unique users of e-commerce and applications in Italy increased from 35.5 million in September 2020 to 38.1 million in September 2022. All these factors would contribute to a significant increase in consumption, boosting the demand for data centers and contributing to segmental growth.
The key players in the market focus on improving the data center storage solutions to meet the market demand. In July 2023, Hitachi Vantara, a prominent infrastructure, data management, and digital solutions subsidiary of Hitachi, Ltd., announced its collaboration with Microsoft to launch the Hitachi Unified Compute Platform (UCP) for Azure Stack HCI. The powerful and streamlined hybrid cloud solution increases business flexibility. It delivers enhanced cloud management across various environments, including data centers, branch offices, and edge computing, to give businesses greater visibility and control over how their data is stored, managed, and used.
Italy Data Center Storage Industry Overview
The upcoming DC construction projects in the country are poised to significantly boost the demand for the Italy Data Center Storage Market in the coming years. The market is moderately consolidated, featuring key players such as Dell Inc., Hewlett Packard Enterprise, NetApp Inc., Huawei Technologies Co. Ltd., and Hitachi Vantara LLC. These industry leaders, commanding a substantial market share, are strategically focused on expanding their regional customer base.
In June 2023, Hitachi Vantara, a distinguished subsidiary of Hitachi, Ltd., specializing in infrastructure, data management, and digital solutions, announced two global partnership agreements with Cisco. These collaborations will facilitate the seamless integration of Cisco technologies into Hitachi Vantara's storage products, positioning the company as a leading provider of data center infrastructure and hybrid cloud-managed services. This move will further solidify its presence in the Vantara Service Provider and Technology Integrator (STI) Partner programs.
Also, in June 2023, Pure Storage, a significant player in data storage technology and services, revealed the expansion of its Pure//E family of products with the introduction of FlashArray//E. This new addition to the product line is designed to offer customers an impressive 80% reduction in energy and space costs, along with a 60% decrease in operational costs compared to traditional disk storage. Additionally, FlashArray//E boasts an 85% reduction in e-waste, making it a sustainable choice for environmentally conscious businesses.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Demand of Clolud Computing Capabilities Drives the Market Growth
4.2.2 Increase in the Demand for Energy-Efficient and Cost-Effective Data Centers
4.3 Market Restraints
4.3.1 Skilled Workforce Availability and Security Concerns
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of COVID-19 Impact
5 MARKET SEGMENTATION
5.1 Storage Technology
5.1.1 Network Attached Storage (NAS)
5.1.2 Storage Area Network (SAN)
5.1.3 Direct Attached Storage (DAS)
5.1.4 Other Technologies
5.2 Storage Type
5.2.1 Traditional Storage
5.2.2 All-Flash Storage
5.2.3 Hybrid Storage
5.3 End-User
5.3.1 IT & Telecommunication
5.3.2 BFSI
5.3.3 Government
5.3.4 Media & Entertainment
5.3.5 Other End-Users
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Dell Inc.
6.1.2 Hewlett Packard Enterprise
6.1.3 NetApp Inc.
6.1.4 Huawei Technologies Co. Ltd.
6.1.5 Hitachi Vantara LLC
6.1.6 Kingston Technology Company Inc.
6.1.7 Pure Storage Inc.
6.1.8 Infinidat Ltd.
6.1.9 Lenovo Group Limited
6.1.10 Fujitsu Limited
6.1.11 Nutanix Inc.
6.1.12 Oracle Corporation
6.1.13 Commvault Systems Inc.
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Demand of Clolud Computing Capabilities Drives the Market Growth
4.2.2 Increase in the Demand for Energy-Efficient and Cost-Effective Data Centers
4.3 Market Restraints
4.3.1 Skilled Workforce Availability and Security Concerns
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of COVID-19 Impact
5 MARKET SEGMENTATION
5.1 Storage Technology
5.1.1 Network Attached Storage (NAS)
5.1.2 Storage Area Network (SAN)
5.1.3 Direct Attached Storage (DAS)
5.1.4 Other Technologies
5.2 Storage Type
5.2.1 Traditional Storage
5.2.2 All-Flash Storage
5.2.3 Hybrid Storage
5.3 End-User
5.3.1 IT & Telecommunication
5.3.2 BFSI
5.3.3 Government
5.3.4 Media & Entertainment
5.3.5 Other End-Users
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Dell Inc.
6.1.2 Hewlett Packard Enterprise
6.1.3 NetApp Inc.
6.1.4 Huawei Technologies Co. Ltd.
6.1.5 Hitachi Vantara LLC
6.1.6 Kingston Technology Company Inc.
6.1.7 Pure Storage Inc.
6.1.8 Infinidat Ltd.
6.1.9 Lenovo Group Limited
6.1.10 Fujitsu Limited
6.1.11 Nutanix Inc.
6.1.12 Oracle Corporation
6.1.13 Commvault Systems Inc.
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
