Data Center

Revenue in the Data Center market is projected to reach US$69.57m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$44.15m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.54%, resulting in a market volume of US$91.10m by 2029.
In global comparison, most revenue will be generated United States (US$123.20bn in 2024).

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.

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Network Infrastructure, such as Cisco Routers and Switches, and Arista Network Ethernet Switches
Infrastructure Firewalls, such as Palo Alto Network Next-Generation Firewall, and Fortinet FortiGate Firewalls
Servers, such as Dell PowerEdge Servers, HPE ProLiant Servers, and IBM Power Systems
Storage, such as Dell EMC Storage Solutions, and NetApp Data Storage Systems

IT Infrastructure for Private Environments, such as VMware vSphere, and Cisco UCS
Software, such as Microsoft Windows Server, and Red Hat Enterprise Linux
Cloud Hosting Services, such as AWS, Microsoft Azure, and GCP
Network Infrastructure Services, such as IT Support Services, and Home Internet Services Providers (ISPs)

The Data Center Market in Bahrain is experiencing minimal growth, impacted by factors such as limited adoption of digital technologies, lack of health awareness among consumers, and limited convenience offered by online services. The market is segmented into servers, storage, and network infrastructure, with each sub-market facing its own challenges. Despite the slow growth rate, the market is expected to see gradual expansion in the coming years due to increasing investments in data center infrastructure and government initiatives to promote digitalization.

Customer preferences: As digitalization continues to transform the economy and society in Bahrain, the demand for efficient and secure data storage and management solutions is on the rise. This is driven by the increasing adoption of cloud computing, big data analytics, and Internet of Things (IoT) technologies. Additionally, there is a growing preference for locally hosted data centers, reflecting a need for data sovereignty and compliance with local regulations. This trend is expected to continue as businesses and individuals prioritize data security and data privacy in the digital age.

Trends in the market: In Bahrain, the Data Center Market is experiencing an increase in demand for cloud services, as businesses seek to modernize their IT infrastructure and reduce costs. Additionally, there is a growing trend towards colocation services, with more companies opting to outsource their data center operations. This trend is expected to continue as the country invests in developing its digital economy and attracting foreign investment. This presents opportunities for industry stakeholders to offer innovative solutions and services to meet the evolving needs of the market. Furthermore, the rise of data privacy and security concerns is driving the adoption of advanced technologies, such as blockchain and AI, to enhance data protection in data centers. This trend is significant for both businesses and consumers, as it ensures the safety and integrity of their data. However, it also poses challenges for data center operators to keep up with constantly evolving security threats and regulations. As a result, collaboration and partnerships with cybersecurity companies will be crucial for data center providers to maintain a competitive edge in the market.

Local special circumstances: In Bahrain, the Data Center market is thriving due to the country's strategic location and advanced telecommunications infrastructure. The government's initiatives to promote digital transformation have also played a key role in driving market growth. Additionally, Bahrain's liberal regulatory environment and strong focus on cybersecurity have attracted international companies to establish their data centers in the country. This has created a competitive market, with service providers offering innovative solutions to meet the unique needs of the local businesses and industries.

Underlying macroeconomic factors: The Data Center Market in Bahrain is heavily influenced by macroeconomic factors such as government initiatives promoting digital transformation, favorable business environment, and investments in ICT infrastructure. The country's stable economic growth, favorable fiscal policies, and strong focus on developing its digital economy have also contributed to the growth of the data center market. Furthermore, the increasing demand for cloud services and data storage solutions, driven by the rise in e-commerce, online banking, and digital media consumption, has further propelled the growth of the data center market in Bahrain.

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.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Although data centers may not make front page news, they serve a critical role as the infrastructure powering the most exciting developments in tech. While data centers were once known as small rooms housed on-site by business users, they have increasingly become extensive, centralized facilities managed by multinational operators. Many organizations rent data center capacity from a so-called colocation provider such as Equinix or Digital Realty, while others subscribe to cloud subscription services to take care of their storage and compute requirements. The global market was forecast to bring in 344 billion U.S. dollars in 2024, propelled by the adoption data intensive technologies.