Data Center - Egypt

Egypt

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 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

Over the past few years, Egypt has witnessed a significant growth in its Data Center market, driven by various factors that have shaped the industry landscape in the country.

Customer preferences: In Egypt, customers are increasingly demanding Data Centers that offer high levels of security, reliability, and scalability. This trend is in line with global preferences, as businesses and organizations across the world are placing greater emphasis on data protection and seamless operations. Additionally, there is a growing preference for Data Centers that are energy-efficient and environmentally friendly, reflecting a broader global shift towards sustainability in the technology sector.

Trends in the market: One of the key trends in the Data Center market in Egypt is the rising adoption of cloud services. As businesses in the country seek to digitize their operations and leverage advanced technologies, the demand for cloud-based Data Center solutions has been on the rise. This trend is consistent with the global movement towards cloud computing, which offers flexibility, scalability, and cost-efficiency for organizations of all sizes.

Local special circumstances: Egypt's strategic geographic location has positioned it as a key market for Data Center investments in the Middle East and North Africa region. The country's stable political environment and government initiatives to promote digital transformation have further boosted the growth of the Data Center market. Additionally, the increasing internet penetration and smartphone adoption rates in Egypt have created a conducive environment for Data Center providers to expand their operations and cater to a growing customer base.

Underlying macroeconomic factors: The economic reforms undertaken by the Egyptian government in recent years have played a crucial role in driving the growth of the Data Center market. Improved regulatory frameworks, increased foreign direct investment, and initiatives to enhance the digital infrastructure have created a favorable business environment for Data Center operators in the country. Furthermore, the growing focus on technology and innovation as part of Egypt's national development plans has contributed to the overall expansion of the Data Center market in the country.

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.