The Euro digital business market is experiencing an increase in the sales of advanced products and services for multiple sectors, including aerospace, automotive, communications, energy, and medical. The growth is attributed to the growing demand for automation across various industries; however, the surge in gas supply from 2021 will adversely impact the market.
Euro Digital Business Sector to keep on Rising
The Digital Business sector in the Euro region is set to witness a remarkable rise by 2022. The new data from the report of GlobalData, an industry research firm, indicates that the Digital Business sector will grow at a CAGR of 8.5%, reaching an estimated value of $1.4 trillion by 2022.
The new report titled “Digital Business in Europe: Strategies, Market Outlook, and Forecasts, 2017-2022” offers a comprehensive analysis of the Digital Business market in Europe. The European Digital Business market is to witness significant growth due to the rising use of digital business among small and medium enterprises (SMEs).
The report provides insights into current and future trends to help businesses make informed decisions regarding future product launches, resource allocation, and marketing strategies. The study also provides information regarding key drivers and challenges that currently affect the market and their impact on current and future trends within the market.
The report also provides insights into global economic conditions likely to influence local business environments in the coming years by analyzing macroeconomic forces that directly or indirectly affect the market.
Even with the falling oil prices, Europe has still been experiencing an energy crisis. The reason behind this energy crisis is that the gas supply has decreased due to Russia Ukrainian war. But some of the digital businesses in the EU are already relocating their data center to other countries in Asia, such as Indonesia.
In 2020, some Europeans were already spending half their disposable income on tech
While the rest of the world was still figuring out how to meet the skyrocketing demand for electricity, some Europeans were already spending more than half their disposable income on technology.
In the Netherlands, for example, 40% of people spend over $300 on technology. By 2020, those figures will be much higher—with the average European family spending closer to $500 per month on items like cell phones, tablets, and Internet access.
The rise in digital spending is attributed to various factors within European society. Some include a larger population, growing internet usage, and greater access to smartphones and services like Netflix. One of the most significant factors in the increase in tech spending may be the influx of online shopping options throughout the continent. Rather than making special trips to brick-and-mortar stores, many Europeans can shop online anywhere and anytime, meaning tech spending can occur more frequently across the board.
The big question is whether this kind of growth will last more than one more year. With consumers becoming increasingly impatient and their attention being divided between more devices, there are severe doubts about whether these numbers can stay as high as they are now.
European Data Center Expansion to Indonesia
Imagine trying to decide where to open up a new data center. You realize that energy costs may be a deciding factor in your choice, so you look at the costs of electricity in various parts of the world. You check out Europe but notice that most countries are very pricey, with some even being twice as expensive as the United States. This is mostly because of how much Europe relies on renewable energy—electricity there is generally more costly than in other places.
In order to keep up with this unprecedented demand for data from their customers, European tech giants including Apple, Google and Facebook had to make some changes to their infrastructure. They relocated their highly energy-intensive data centers from developed countries in North America and Europe to emerging markets like Indonesia.
The smaller but fast-growing markets in Southeast Asia are perfect for a growing number of tech companies. The availability of cheap labor and abundant resources means that these locations offer power at rates 25 percent lower than what American companies pay for electricity at home.
Tech leaders have also been working with local governments in Southeast Asia to improve access to reliable electricity and innovation zones where they can test new technologies and advance new industries like renewable energy. Many European countries are already developing green energy sources like solar panels and wind turbines as alternatives to coal.
In looking at another continent, you discover that data center in Indonesia has much lower prices than anywhere else in the world. You may even get an extra tax break for opening up shop there. If your goal is to save money on your data center while still complying with environmental compliance, Indonesia is one part of the globe you should consider.
As more people switch to digital forms of communication and entertainment, they’re also creating new opportunities for innovation that can bring prices down even further.
While this growth is encouraging for many businesses looking to establish themselves within Europe, it can also be challenging for those tasked with providing infrastructure for their operations. Finding a way to keep up with demand while keeping costs low is key. Though on-premises data centers still dominate in Europe, many companies are beginning to consider outsourcing their data centers to Asia as a more cost-effective option.
In the past year, European companies have been relocating their data centers from the continent to Indonesia due to the lower cost of electricity and a power surplus in the region. This is particularly noteworthy because Indonesia is a developing country, which means that it will be able to offer these prices at a much lower cost than European nations like France and Germany—which continue to provide low-cost energy to appeal to businesses.
The low prices will also help Indonesia avoid dependence on foreign oil; currently, many of the country’s electricity plants run on natural gas. This shift could have substantial positive economic implications for the Indonesian and European economies and create new regional jobs.