Data Center

Revenue in the Data Center market is projected to reach US$325.10m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$179.30m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 10.90%, resulting in a market volume of US$545.30m 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 Egypt is experiencing subdued growth, influenced by factors such as slow adoption of digital technologies, low health awareness among consumers, and limited convenience offered by online services. This is reflected in the slower growth rates of the Servers, Storage, and Network Infrastructure sub-markets.

Customer preferences: As technology becomes more integrated into daily life, consumers in Egypt are increasingly seeking digital solutions for managing their health and wellness. This has led to a rise in demand for wearable devices and health tracking apps, as well as online doctor consultations. This shift is also influenced by the need for remote monitoring and management of chronic conditions, reflecting a growing preference for convenient and timely healthcare options.

Trends in the market: In Egypt, the Data Center Market is experiencing a surge in demand for cloud and colocation services, driven by the growing adoption of digital transformation strategies by businesses. This trend is expected to continue with the government's efforts to promote technology infrastructure and attract foreign investment. Additionally, there is a rise in the use of artificial intelligence and Internet of Things (IoT) technologies, which are driving the need for data storage and processing capabilities. These trends highlight the importance of data centers in supporting digital innovation and economic growth in Egypt. For industry stakeholders, this presents opportunities for expansion and partnerships, as well as the need to keep pace with technological advancements to stay competitive in the market.

Local special circumstances: In Egypt, the Data Center Market is growing due to the country's strategic location, low operational costs, and government initiatives to promote technology and digital infrastructure. The market is also influenced by the unique cultural and regulatory environment, with a strong focus on data security and privacy. This has led to the emergence of local data center providers, catering to the specific needs of the Egyptian market. Additionally, the increasing adoption of cloud computing and digital transformation among businesses is driving the demand for data center services in Egypt.

Underlying macroeconomic factors: The Data Center Market in Egypt is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. The country's rapid economic growth and increasing adoption of cloud computing are driving the demand for data center services. Moreover, favorable government initiatives, such as the establishment of technology parks and tax incentives for data center operators, are further propelling market growth. Additionally, the rising demand for data storage and management solutions, fueled by the growth of e-commerce and digital services, is expected to drive the growth of the Data Center Market in Egypt.

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.