Data Center

Revenue in the Data Center market is projected to reach US$119.40m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$75.61m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.99%, resulting in a market volume of US$159.60m 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.

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

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 Kuwait is experiencing minimal growth, influenced by factors such as the limited adoption of digital technologies, low health awareness among consumers, and the lack of convenience in online health services. This can be seen in the sub-markets of Servers, Storage, and Network Infrastructure, which are all facing slow growth due to these factors.

Customer preferences: The increasing adoption of cloud computing and digital transformation initiatives in Kuwait has led to a rising demand for data centers. This trend is driven by businesses' need for secure and reliable storage solutions, as well as the growing use of digital services by consumers. Additionally, with the government's focus on developing a digital economy, there is a growing need for data centers to support the infrastructure for e-commerce, online banking, and other digital services. This shift towards digitalization is also fueling the demand for data center services, such as colocation and managed hosting, as companies look to outsource their IT infrastructure to focus on their core business operations.

Trends in the market: In Kuwait, the Data Center Market is experiencing a surge in demand for cloud services, as more businesses shift towards digital transformation. This trend is expected to continue as the government invests in digital infrastructure and promotes a tech-friendly environment. With the rise of remote work and online learning, there is also a growing need for secure and reliable data storage and management solutions. This presents opportunities for data center providers to expand their offerings and cater to the evolving needs of their clients. Moreover, with the increasing adoption of IoT devices and big data analytics, data centers are becoming essential for businesses to gain insights and stay competitive in the market. As such, industry stakeholders must stay updated on emerging technologies and adapt their strategies to meet the changing demands of the market. Failure to do so may result in losing market share to competitors and hindering overall growth potential.

Local special circumstances: In Kuwait, the Data Center Market is experiencing rapid growth due to the country's strategic location as a gateway between Europe and Asia, as well as favorable government policies and investments in infrastructure. Additionally, Kuwait's high GDP per capita and growing tech-savvy population are driving demand for data storage and processing solutions. With a strong focus on cybersecurity and data privacy, the market is also influenced by the country's strict regulatory environment, making it an attractive destination for international data center operators.

Underlying macroeconomic factors: The Data Center Market in Kuwait is heavily influenced by macroeconomic factors such as the country's overall economic health, government policies and regulations, and global economic trends. With a strong and stable economy, Kuwait has been able to attract significant investments in the data center industry, leading to its rapid growth. Moreover, the government's initiatives to modernize and diversify the economy have also created a favorable environment for the development of data centers in the country. Additionally, the increasing demand for digital transformation and cloud services in the region has further propelled the growth of the data center market in Kuwait.

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.