Data Center - Israel

  • Israel
  • Revenue in the Data Center market is projected to reach US$1.73bn in 2024.
  • Network Infrastructure dominates the market with a projected market volume of US$1.07bn in 2024.
  • Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.92%, resulting in a market volume of US$2.20bn 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

 
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Analyst Opinion

The Data Center market in Israel is experiencing minimal growth, influenced by factors such as increasing demand for server, storage, and network infrastructure, and the convenience offered by online services. This is driven by the growing adoption of digital technologies and rising awareness of the importance of data management for businesses. However, challenges such as limited resources and high costs are impacting the market's growth rate.

Customer preferences:
The rise of remote work and virtual events during the COVID-19 pandemic has accelerated the demand for cloud-based solutions and data storage in Israel. This trend is expected to continue as businesses and individuals embrace digital transformation and rely more on online platforms for communication, collaboration, and entertainment. Additionally, the increasing adoption of Internet of Things (IoT) devices and technologies is driving the need for robust and secure data centers to support the processing and storage of massive amounts of data generated by these devices.

Trends in the market:
In Israel, the Data Center Market is experiencing a surge in demand for cloud services, with businesses increasingly adopting cloud-based solutions for data storage and management. Additionally, there is a growing trend of edge computing, with the deployment of data centers closer to end-users for faster and more efficient data processing. This trend is significant as it enables businesses to better utilize their data while also reducing network latency. Moreover, it presents opportunities for data center providers to expand their services and cater to the evolving needs of their clients. However, it also poses challenges in terms of infrastructure and security, as edge computing requires a decentralized network. Overall, industry stakeholders must continuously adapt to these trends to stay competitive in the fast-paced Data Center Market in Israel.

Local special circumstances:
In Israel, the Data Center Market is thriving due to the country's strong technological infrastructure and its position as a global hub for innovation and technology. Additionally, Israel's unique geopolitical situation has led to a strong focus on cybersecurity, making it a prime location for secure data storage and management. The country's close ties with the US and Europe also contribute to its attractiveness as a data center market, as it offers easy access to these markets.

Underlying macroeconomic factors:
The Data Center Market in Israel is heavily impacted by macroeconomic factors, including the country's strong technological advancements, supportive regulatory environment, and significant investment in digital infrastructure. These factors have contributed to a thriving market for data centers, as companies seek to take advantage of Israel's advanced technological capabilities. Additionally, Israel's strong national economic health and favorable fiscal policies have created a stable and conducive environment for business growth, further fueling the demand for data center services. With the country's focus on innovation and technology, the data center market in Israel is expected to continue its upward trend.

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.

Overview

  • Revenue
  • Key Players
  • Analyst Opinion
  • Global Comparison
  • Methodology
  • Key Market Indicators
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