Data Center - Central Asia

Central Asia

Revenue in the Data Center market is projected to reach US$755.00m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$382.50m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.48%, resulting in a market volume of US$1,083.00m 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.

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Market

Region

Region comparison

Currency

Analyst Opinion

The Data Center Market in Central Asia is currently experiencing a minimal growth rate, influenced by factors such as slow adoption of digital technologies, low awareness of health and inconsistent infrastructure. These sub-markets, along with the convenience of online health services, are impacting the overall market's growth.

Customer preferences: With the rapid growth of the internet and digital technology adoption in Central Asia, there has been a significant increase in demand for data center services. This is driven by the rising preference for digital entertainment platforms and online shopping, which require robust infrastructure to provide a seamless experience. Additionally, remote work and online learning have become more prevalent, leading to a surge in demand for reliable and secure data storage and processing solutions. This trend is expected to continue as the region witnesses a steady increase in internet penetration and digitalization of various industries.

Trends in the market: In Central Asia, the Data Center market is experiencing a surge in demand for cloud services, driven by the increasing adoption of digital transformation strategies by businesses. This trend is expected to continue, with a projected growth rate of 12% in the next five years. This signifies the importance of data centers in supporting the region's technological advancement and economic growth. Additionally, with the rise of e-commerce and online services, there will be a greater need for reliable and secure data storage and processing, creating opportunities for industry stakeholders to expand their services and offerings. However, this growth also brings challenges in terms of infrastructure, energy consumption, and cybersecurity, requiring the industry to innovate and evolve to meet the changing demands.

Local special circumstances: In Central Asia, the Data Center Market is expanding due to the region's strategic location connecting Europe and Asia, attracting investments for cross-border data exchange. The cultural and regulatory environment also plays a role, with some countries implementing stricter data privacy regulations, while others offer tax and investment incentives. This has led to a diverse market landscape, with Kazakhstan focusing on developing a digital economy, while Uzbekistan is seeing growth in IT outsourcing services. Kazakhstan's proposed digital currency and Uzbekistan's digital transformation initiatives are also shaping the market.

Underlying macroeconomic factors: The Data Center Market in Central Asia is heavily influenced by macroeconomic factors such as government policies, economic stability, and technological advancements. Countries with strong economic growth and favorable business environments attract more investments and drive the demand for data center services. Additionally, the increasing adoption of cloud computing and big data analytics in various industries is fueling the growth of the data center market in the region. Furthermore, the growing digitalization of businesses and the rise of Internet of Things (IoT) devices are also contributing to the expanding demand for data center services in Central Asia.

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.