Data Center

Revenue in the Data Center market is projected to reach US$324.50m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$182.10m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.29%, resulting in a market volume of US$329.20m 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 Kazakhstan 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. This is reflected in the negligible growth rate of the overall market, driven by underperforming sub-markets of Servers, Storage, and Network Infrastructure.

Customer preferences: The growing demand for data storage and processing capabilities in Kazakhstan has led to an increase in the adoption of cloud-based services and virtualization technologies. This trend is driven by the need for cost-effective and scalable solutions, as well as the rising trend of remote work and education. Additionally, the government's push for digitalization and the growth of e-commerce in the country are also contributing to the expansion of the data center market.

Trends in the market: In Kazakhstan, the Data Center Market is experiencing a surge in demand for cloud services, driven by the increasing adoption of digital technologies in various industries. This trend is expected to continue, with the government promoting digital transformation and investing in infrastructure to support it. This has significant implications for industry stakeholders, as it presents opportunities for growth and innovation. Additionally, as the country aims to become a regional hub for data storage and processing, the data center market is expected to witness further expansion and attract more foreign investments.

Local special circumstances: In Kazakhstan, the Data Center Market is influenced by the country's vast land area and its strategic location between Europe and Asia. This makes it an ideal location for international data center hubs, attracting major players in the market. The country's favorable business climate and government support also contribute to its growth. Additionally, Kazakhstan's rapidly growing digital economy and increasing demand for cloud services are driving the development of the data center market. These unique local factors make Kazakhstan a promising market for data center growth, with potential for further expansion in the future.

Underlying macroeconomic factors: The Data Center Market in Kazakhstan is heavily impacted by macroeconomic factors, including the country's economic health and global economic trends. Kazakhstan has experienced steady economic growth in recent years, which has led to an increase in demand for data center services. Additionally, the government's fiscal policies, such as investment in digital infrastructure and support for technology innovation, have also played a significant role in driving market growth. Furthermore, the country's strategic location at the crossroads of Europe and Asia makes it a prime location for data center operations, further boosting the market's potential.

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.