Switzerland Data Center Rack - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2030

The Switzerland data center rack market reached a volume of over 951,000 units in the previous year, and it is further projected to register a CAGR of 5.3% during the forecast period. 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 Switzerland data center rack market is expected to reach 670 MW by 2029.

Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 2.6 million sq. ft by 2029.

Planned Racks: The country's total number of racks to be installed is expected to reach 130,000 units by 2029. Zurich is expected to house the maximum number of racks by 2029.

Switzerland Data Center Rack Market Trends

E-commerce is expected to grow significantly in coming years

• As measured by the share of online purchases, Switzerland is one of the top five European countries. In 2021, 11.8% of Swiss retail sales were online. In 2021, Swiss online retailer sales were to continue to outpace those of international online retailers. In total, Swiss residents spent CHF13 billion (USD 13.35 billion) on local online shops and around CHF2.1 billion (USD 2.16 billion) on international online shops in 2021.
• Digitec.ch is one of the fastest growing e-commerce markets in Switzerland, with e-commerce net sales in Switzerland to hit USD 1.251 billion in 2021, followed by zalando.ch, which was USD 1.211 billion. Galaxus.ch came in third with USD 729 million in sales. Brack.ch is fourth largest online store in Switzerland, with 2021 net sales of USD 569 million.
• The COVID-19 pandemic was a major growth driver for the Swiss e-commerce sector. During the nationwide lockdown, Swiss consumers were banned from shopping directly at pharmacies and supermarkets.
• The growing need for data center services and growing demand for racks in the e-commerce sector is driven by the growing demand for online transactions via wireless devices such as smartphones, tablets, and laptops, resulting in traffic being expected to increase.
• Increasing internet penetration and an increasing number of online transactional applications are further driving the growth of data centers and, thus, the number of racks.

Full rack segment to hold major share in the market

• As businesses generate massive amounts of data every day, they are increasingly relying on data centers to efficiently manage their databases and storage. A major factor driving the use of data center racks, therefore, is the increasing use of fully configured data centers. In addition, market growth is influenced by rising demand for IT services and investment by large enterprises.
• Initially, the focus was limited to data center rack space. Only size and cost were considered in the deployment. Still, data center rack space utilization is likely to increase further as users grow in various verticals such as online banking, telecommunications, media, entertainment, and other high-density applications.
• In Switzerland, full racks hold the majority of the market share due to the growing space shortage between various companies. A fully racked data center needs to be built to cope with increasing rack capacity due to mobile broadband, the rapid growth of e-commerce, and the rise of big data analytics combined with cloud computing.
• The growing number of mobile Internet users and electronic payment users has increased data storage, and the increasing number of hyperscalers has enabled the use of more data center racks.
• Swiss QR invoices are the new standard for electronic payments. It will be introduced in October 2022 and aims to replace the orange and red deposit slips used in the country. The QR invoice contains a QR code that can be read by electronic devices such as smartphones. Such developments encourage the use of the Internet or mobile payment methods in Switzerland.

Switzerland Data Center Rack Industry Overview

The Switzerland data center rack market is relatively high in terms of competition and has a few players in the market, such as Vertiv Group Corp., Eaton Corporation, Reichle & De-Massari AG, Rittal GMBH & Co.KG, and Schneider Electric SE. These major players focus on expanding their customer base in the country. These companies leverage strategic collaborative initiatives to increase their market share and profitability. The increase in the data center construction corresponds to increasing demand for the number of racks in the data centers.

In January 2023, A new data center facility opened in Zurich's Dielsdorf neighborhood owing to Swiss data center operator Green Datacenter. On a 46,000 sqm (495,150 sq ft) site, the Zurich Metro campus will eventually consist of three buildings (M, N, and O).

In September 2022, In Switzerland's Zurich, Equinix expanded the size of one of its data centers. An extra 850 square meters (9,150 square feet) of whitespace and more than 200 cabinets have been added to the colocation giant's ZH4 IBX.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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