Data Center

Revenue in the Data Center market is projected to reach US$20.13m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$10.87m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.52%, resulting in a market volume of US$27.61m 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 Malawi is seeing slow growth due to limited adoption of digital technologies, low health awareness among consumers, and lack of convenience in accessing online health services. Sub-markets such as servers, storage, and network infrastructure are also affected by these factors. The overall market growth rate is minimal, as these challenges continue to impact the industry.

Customer preferences: There is a growing demand for cloud-based data center solutions in Malawi, driven by the rise of e-commerce and the increasing adoption of digital technologies by businesses. Companies are looking for scalable and cost-effective options to manage their data, leading to a shift towards colocation and managed services. Additionally, the growing availability of reliable internet connectivity in the country is also fueling the demand for data center services, as more businesses rely on digital operations for their day-to-day activities.

Trends in the market: In Malawi, the Data Center Market is experiencing a surge in demand for cloud services, as businesses and organizations increasingly rely on digital infrastructure for their operations. This trend is expected to continue as the country's economy grows and more companies adopt digital transformation strategies. Additionally, there is a growing trend towards green data centers, with a focus on using renewable energy sources and reducing carbon emissions. These trends have significant implications for industry stakeholders, as they must adapt to meet the changing needs of their clients and remain competitive in the market. Furthermore, the adoption of green data centers aligns with global sustainability goals, making it a valuable selling point for businesses.

Local special circumstances: In Malawi, the Data Center Market is primarily driven by the country's growing digital economy and investment in ICT infrastructure. However, limited access to reliable electricity and internet connectivity pose challenges for data center operators. Additionally, the government's strict regulatory framework for data protection and privacy also impacts the market's growth. The country's unique geographical and cultural landscape also plays a role, with the majority of the population living in rural areas and relying on mobile devices for internet access. These factors contribute to the slower growth of the Data Center Market in Malawi compared to other markets.

Underlying macroeconomic factors: The Data Center Market in Malawi is heavily influenced by macroeconomic factors such as government initiatives, infrastructure development, and foreign investment. With the country's growing economy and increasing focus on technology, there is a high demand for data center services to support businesses and organizations. Additionally, the stable political environment and favorable regulatory policies have created a conducive market for data center investments. However, challenges such as limited access to reliable internet and electricity infrastructure in some areas may hinder market growth. Overall, the market is expected to continue its upward trend as the country invests in its digital infrastructure and attracts more foreign investments in the data center sector.

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.