Data Center - Iran

Iran

Revenue in the Data Center market is projected to reach US$1.71bn in 2024.
Servers dominates the market with a projected market volume of US$0.69bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.19%, resulting in a market volume of US$2.42bn 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

Iran's Data Center market is experiencing significant growth and development, driven by various factors influencing the industry in the region.

Customer preferences: Customers in Iran are increasingly demanding higher data storage and processing capabilities to support their expanding digital infrastructure. This growing need is pushing Data Center providers to offer more advanced and efficient solutions to meet the evolving demands of their clients.

Trends in the market: One notable trend in the Iranian Data Center market is the rising adoption of cloud services. Businesses in the country are increasingly moving towards cloud-based solutions to enhance their operational efficiency and scalability. This shift is driving the demand for Data Centers that can support cloud computing and storage services effectively. Another trend shaping the market is the focus on cybersecurity. With the rising threat of cyber attacks and data breaches, companies in Iran are prioritizing data security and are seeking Data Center providers that can offer robust security measures to safeguard their sensitive information.

Local special circumstances: Iran's Data Center market is also influenced by local regulations and geopolitical factors. Sanctions and restrictions imposed on the country have limited access to international Data Center providers, leading to the growth of domestic Data Center companies. These local providers are catering to the specific needs of Iranian businesses while navigating the challenges posed by the geopolitical environment.

Underlying macroeconomic factors: The development of Iran's Data Center market is also supported by the country's overall economic growth and increasing digitalization across industries. As more businesses in Iran embrace digital transformation and technology adoption, the demand for Data Center services is expected to continue rising. Additionally, government initiatives to promote the digital economy and improve internet infrastructure are further fueling the 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.