Data Center - Bahrain

Bahrain

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 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 Bahrain has been steadily growing due to factors such as increased adoption of digital technologies, rising demand for online services, and rising awareness about the importance of data storage and management. While there has been minimal growth, factors such as government regulations and infrastructure limitations have contributed to this slow growth rate.

Customer preferences: The demand for cloud-based services has significantly increased in Bahrain's Data Center market, as businesses and consumers alike seek more efficient, scalable, and secure solutions for their data storage and management needs. This trend is driven by the growing reliance on digital technologies and the need for reliable and seamless connectivity. Additionally, stricter data privacy regulations have also led to a heightened emphasis on data security and compliance, further driving the adoption of cloud-based solutions.

Trends in the market: In Bahrain, there is a growing demand for cloud-based services, leading to an increase in data center investments. This trend is driven by the government's push towards digital transformation and the adoption of emerging technologies like AI, IoT, and blockchain. These developments are significant for both local and international players, as Bahrain's central location and supportive business environment make it an attractive data center hub in the Middle East. As the demand for data centers continues to grow, industry stakeholders can expect increased competition and the need to constantly innovate and upgrade services to meet the evolving needs of customers.

Local special circumstances: In Bahrain, the Data Center Market is experiencing significant growth due to its strategic location in the Middle East, with easy access to major global markets. Additionally, the country's business-friendly environment and supportive government policies have attracted multinational companies to establish their presence in the market. Moreover, Bahrain's developed infrastructure, cultural diversity, and high-quality telecommunications infrastructure make it an ideal location for data center operations. The country's open economy and liberal business laws have also fostered a competitive market, driving innovation and technological advancements in the data center sector.

Underlying macroeconomic factors: The Data Center Market in Bahrain is heavily influenced by macroeconomic factors such as government policies and investments. The country's strategic location, stable political climate, and strong economic growth have made it an ideal location for data center development. In addition, Bahrain's government has implemented policies to support the growth of the digital economy, including initiatives such as the establishment of a dedicated ICT sector and the implementation of a national broadband network. These factors have attracted significant investments in the data center market, contributing to its rapid growth in recent years. Furthermore, the increasing demand for cloud services and the adoption of emerging technologies, such as artificial intelligence and Internet of Things, are expected to further drive the growth of the data center market in Bahrain.

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.