Data Center - Eastern Africa

Eastern Africa

Revenue in the Data Center market is projected to reach US$1.09bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$0.48bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.88%, resulting in a market volume of US$1.52bn 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 Eastern Africa has been experiencing minimal growth, influenced by factors such as slow adoption of digital technologies, limited health awareness, and lack of convenient online services. This is reflected in the sub-markets of Servers, Storage, and Network Infrastructure.

Customer preferences: The Data Center Market in Eastern Africa is experiencing a shift towards cloud-based solutions, as companies look to streamline operations and reduce costs. This trend is driven by the region's growing tech-savvy population and increasing internet penetration rates. With the rise of e-commerce and online services, there is also a growing demand for secure and reliable data storage and management solutions. As a result, there has been a significant increase in the adoption of data centers, especially among small and medium-sized businesses. This shift towards cloud-based solutions is also fueled by the need for remote and flexible work arrangements, as well as the growing importance of data privacy and security.

Trends in the market: In Eastern Africa, the Data Center Market is experiencing a growing demand for cloud computing services, with a rise in investments from major players such as Microsoft and Amazon. This trend is expected to continue, driven by the increasing adoption of digital services and the need for data storage and processing capabilities. As a result, there is a growing interest in building green data centers to meet sustainability goals. This trend not only benefits the environment but also presents opportunities for industry stakeholders to differentiate themselves and attract environmentally conscious customers. Additionally, the rise of e-commerce and digital payments in the region is expected to further drive the demand for data centers, creating a positive outlook for the industry in Eastern Africa.

Local special circumstances: In Eastern Africa, the Data Center Market is rapidly growing due to the region's increasing demand for digital services and the development of tech hubs. The market is also influenced by the unique regulatory environment, with countries like Kenya and Rwanda implementing policies to attract foreign investment in the sector. Additionally, the region's diverse geography and cultural landscape play a significant role in shaping the market, with factors such as connectivity and infrastructure varying across different countries. This has led to a dynamic and evolving data center market in Eastern Africa.

Underlying macroeconomic factors: The Data Center Market in Eastern Africa is also impacted by macroeconomic factors such as technological advancements, government policies, and infrastructure investments. Countries with supportive regulatory frameworks and significant investments in data center infrastructure are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Furthermore, the increasing demand for digital transformation and cloud computing services in the region is driving the growth of the data center market. Additionally, the region's growing population and increasing adoption of digital technologies are creating a significant demand for data center services.

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.