Data Center - Iraq

Iraq

Revenue in the Data Center market is projected to reach US$305.70m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$188.60m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.93%, resulting in a market volume of US$427.40m 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.

For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

The Data Center Market in Iraq is experiencing minimal growth due to factors such as limited adoption of digital technologies, low health awareness among consumers, and lack of convenience in online services. These challenges may be attributed to the sub-markets of Servers, Storage, and Network Infrastructure, which are not fully developed in the country. However, with increasing investments in improving these sub-markets, the Data Center Market in Iraq is expected to see significant growth in the near future.

Customer preferences: The Iraqi Data Center Market is experiencing a significant shift towards cloud-based solutions, driven by the growing demand for remote working and virtual collaboration tools. This trend is influenced by the country's increasing adoption of digital technologies and the need for enhanced connectivity and data storage capabilities. Additionally, the rise in e-commerce and online services has led to a surge in demand for secure and reliable data centers, in line with consumers' preference for convenient and seamless online experiences.

Trends in the market: In Iraq, the data center market is experiencing a surge in demand due to the increasing adoption of cloud computing services. This trend is expected to continue as more businesses and government agencies shift towards digital transformation. Additionally, there is a growing trend of colocation services, where multiple companies share a single data center, leading to cost savings and improved efficiency. These trends highlight the importance of reliable and secure data center infrastructure in Iraq, presenting opportunities for industry stakeholders to expand their services and offerings.

Local special circumstances: In Iraq, the Data Center Market is still in its nascent stage due to political instability and ongoing conflicts. However, the country's growing economy and increasing internet penetration are driving the demand for data storage and processing services. Additionally, the government's initiatives to modernize the ICT sector and attract foreign investments have created a favorable environment for the growth of the data center market. The unique geographical location of Iraq, situated between the Middle East and Asia, also provides opportunities for the country to become a data hub for the region.

Underlying macroeconomic factors: The Data Center Market in Iraq is heavily influenced by macroeconomic factors such as the country's overall economic health, government policies, and global economic trends. The country's GDP growth, inflation rate, and fiscal policies play a significant role in shaping the demand for data center services. Additionally, the growing adoption of digital transformation initiatives and the increasing reliance on cloud computing are driving the demand for data centers in Iraq. Furthermore, the government's efforts to diversify the economy and attract foreign investments are expected to create more opportunities for 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.