Germany data monetization is projected to grow at a CAGR of 6.19% to attain a market size of US$16.527 billion by 2027, from US$10.853 billion in 2020.
The major factors driving the market growth are the rising adoption of digital transformation in the BFSI sector of the country and growing investments in the ICT sector. Additionally, key players are collaborating to expand their business across different locations in Germany, owing to which the market growth will surge during the forecast period. Berlin, Frankfurt, and Hamburg are considered the most opportunistic markets in Germany owing to the growing demand for data center services across the cities. The market is segmented into- By Offering, By Deployment Model, By Enterprise Size, By End-User Industry, and By Country.
Germany Data Monetization Market: Growth Drivers
Many global cloud providers, such as AWS, Microsoft, and Google, are expanding their presence in Germany and are planning to invest in new data centre facilities in the country. For instance, Google has announced its expansion plans in Germany and is planning to invest around 1 billion in new data centre facilities. The company is planning to launch its data centre and cloud facility in Frankfurt and Berlin, respectively, which will significantly contribute to the data monetization market growth in Germany. Moreover, the growth in the number of cloud service providers and the ICT sector of the country will further drive market growth during the forecast period. Additionally, recent acquisitions and collaborations by prominent key players will positively drive market growth. For instance, Vantage acquired Etix to provide wholesale data centre capacity delivery to enterprise customers planning to expand their business in Frankfurt. The company plans to invest around USD 2 billion in five markets across Europe, including the “crown jewel" 55MW greenfield campus, in Germany. Furthermore, increasing investments in digital infrastructure in the country are also forecasted to drive market growth.
Germany Data Monetization Market: By End-User Industry
One of the prime reasons supporting the overall market growth is the growing demand for data monetization across the BFSI sector of the country. The growing use of net banking, digital storage, and virtualization of the BFSI sector in the country is projected to drive the overall market growth during the forecast period. The banking sector of the country is expected to witness significant adoption of data monetization technology due to the rising adoption of digital transformation and mobile banking initiatives. Moreover, the growing use of blockchain technology in the banking sector and online digital transactions are some other factors that are contributing to the overall market growth. The digital transaction generates a considerable volume of data that needs to be monetized as it helps prevent fraud by detecting malicious authorizations and fraudulent payments. Digital transformation in the banking sector of Germany is expanding at a rapid pace which will further drive the market growth. Germany is considered to have the second-largest digital transaction industry across the Europe region, and it had a EUR 178 billion transaction value in 2021 (Source: Finaria).
COVID-19 Insights
The data monetization market in the country was proliferating before the COVID-19 outbreak. However, market growth was affected during the pandemic due to a sharp decline in investments in the ICT sector of the region. Nonetheless, the market has been witnessing a high growth since 2021, owing to growing investments in cloud services and data center technology. Major key players in the market are looking forward to expanding their business across Frankfurt and Berlin, which is projected to drive the overall market growth during the forecast period.
Segmentation
The market has been analyzed through the following segments: