Data Center - Africa

Africa

Revenue in the Data Center market is projected to reach US$6.47bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$3.32bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.18%, resulting in a market volume of US$9.15bn by 2029.
In global comparison, most revenue will be generated in the United States (US$123.20bn in 2024).

Key regions: United States, Germany, India, Japan, China

Definition:

The Data Center market is a critical segment of the technology industry focusing on supplying and managing physical infrastructure necessary for hosting and operating IT systems, primarily servers, storage, and network equipment. This market spans from traditional in-house data centers to sophisticated facilities offered by specialized providers, covering services like hosting, shared data center facilities, and managed data center solutions. It targets a diverse client base, ranging from small businesses to large enterprises, offering flexible, scalable solutions for their IT infrastructure needs. This sector is integral to the efficient functioning and security of IT operations in various organizations.

Structure:

The Data Center market is structured in three markets based on the services model provided by the companies.

The Server market covers the resources and services related to servers, integral for hosting websites, managing databases, and supporting cloud computing.
The Storage market covers the resources and services related to data storage systems, crucial for archiving, data backup, and ensuring data recovery.
The Network Infrastructure market covers the resources and services related to network hardware essential for ensuring connectivity, data transmission, and network security.

Additional Information:

The Data Center market includes revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Market values represent revenues paid to primary vendors at the manufacturer price level either directly or through distribution channels (excluding VAT). Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players in the Data Center market include companies such as Dell, HPE, Huawei, and Ericsson.

For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

The Data Center Market in Africa is experiencing minimal growth, attributed to factors such as slow adoption of digital technologies, limited health awareness among consumers, and challenges in the Servers, Storage, and Network Infrastructure sub-markets. However, increased government investments and partnerships with international companies could potentially drive growth in the future.

Customer preferences: The growing demand for data storage and processing capabilities has led to a rise in the adoption of cloud-based services and virtualization technologies in the Data Center Market. This trend is driven by the need for cost-effective and efficient solutions, as well as the increasing availability of high-speed internet connectivity. Additionally, the rise of edge computing and the Internet of Things (IoT) has further amplified the demand for data centers in Africa, as businesses and individuals require more storage and computing power closer to their physical location.

Trends in the market: In Africa, the Data Center Market is experiencing a surge in demand for cloud services, as more businesses and organizations adopt digital solutions. This trend is driven by the continent's growing mobile and internet connectivity, as well as the need for cost-effective and scalable data storage solutions. As a result, data center providers are expanding their infrastructure and offering more services such as managed hosting and disaster recovery. This trend is expected to continue, with the potential to enhance Africa's economic growth and drive innovation in industries such as e-commerce and fintech. However, it also brings challenges such as data privacy and security concerns, requiring industry stakeholders to prioritize robust solutions and regulatory compliance.

Local special circumstances: In Africa, the Data Center Market is shaped by various factors, such as limited internet connectivity and the presence of underdeveloped infrastructure. Despite these challenges, the market is growing due to the increasing demand for cloud services and data storage solutions. The unique cultural and regulatory landscape also plays a significant role, with some countries having stricter data privacy laws than others. Additionally, the diverse geographical landscape of the continent poses challenges for data center operators, requiring them to adapt to different environmental conditions.

Underlying macroeconomic factors: The Data Center Market in Africa is heavily influenced by macroeconomic factors such as global economic trends, national economic health, and fiscal policies. The region's economic growth and stability play a crucial role in driving demand for data center services. Additionally, government initiatives to promote digital transformation and investment in ICT infrastructure are key drivers of market growth. However, challenges such as political instability, currency fluctuations, and inadequate infrastructure can hinder market growth in some countries. Overall, the increasing digitalization of businesses and the growing need for data storage and management are expected to drive the growth of the Data Center Market in Africa.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on hardware-related expenses of businesses for setting up and maintaining an IT infrastructure.

Modeling approach / Market size:

Market sizes are determined through a top-down approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports and national statistical offices. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of digitization. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques, such as exponential trend smoothing and the S-curve function, is based on the behavior of the relevant market.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.