Data Center - MENA

MENA

Revenue in the Data Center market is projected to reach US$10.74bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$6.91bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.28%, resulting in a market volume of US$14.56bn 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.

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Market

Region

Region comparison

Currency

Analyst Opinion

The MENA Data Center market is experiencing minimal growth due to factors such as slow adoption of digital technologies, limited awareness about online health services, and challenges in implementing advanced network infrastructure. However, the demand for Servers, Storage, and Network Infrastructure is expected to increase in the future due to the growing need for data management and storage in the region.

Customer preferences: As the demand for data storage and processing continues to rise in the MENA region, there is a growing trend towards cloud-based solutions. This can be attributed to the increasing popularity of remote work and virtual collaboration, as well as the need for businesses to have access to their data at all times. Additionally, there is a shift towards eco-friendly data centers, driven by the growing awareness of sustainability and the need for businesses to reduce their carbon footprint.

Trends in the market: In the MENA region, the data center market is seeing a surge in demand for cloud services, with businesses increasingly adopting cloud-based solutions for data storage and management. This trend is driven by the region's rapidly growing digital economy and the need for scalable and cost-effective data infrastructure. As a result, data center providers are expanding their offerings to include managed services and hybrid cloud solutions. This trajectory is significant for industry stakeholders as it presents opportunities for growth and expansion in the market. However, it also poses challenges in terms of security and data privacy, requiring stakeholders to stay updated on compliance regulations and invest in robust security measures.

Local special circumstances: In the MENA region, the Data Center Market is experiencing a rapid growth due to the increasing adoption of cloud computing, big data, and IoT technologies. This is driven by the region's focus on diversifying its economy and reducing its dependence on oil. Additionally, the market is influenced by the region's strict data privacy laws and regulations, which require companies to store data locally. The cultural preference for on-premises data centers also contributes to the market's unique dynamics.

Underlying macroeconomic factors: The Data Center Market in MENA is heavily influenced by macroeconomic factors such as the growth of the digital economy, government support for digital transformation, and the increasing demand for cloud-based services. With the rise of remote work and digitalization of businesses, there is a growing need for reliable and efficient data centers in the region. Moreover, favorable government policies and investments in ICT infrastructure are boosting the growth of the data center market in MENA. Additionally, the increasing adoption of emerging technologies such as AI, IoT, and big data analytics is further driving the demand for data center services in the region.

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.