Data Center - Mongolia

Mongolia

Revenue in the Data Center market is projected to reach US$119.30m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$68.12m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.37%, resulting in a market volume of US$170.20m 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.

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

Market

Region

Region comparison

Currency

Analyst Opinion

The Data Center market in Mongolia is experiencing subdued growth due to factors such as limited resources and infrastructure, low adoption of digital technologies, and lack of awareness among consumers. However, the demand for Servers, Storage, and Network Infrastructure is expected to increase in the coming years, driven by the growing need for data storage and processing capabilities in various industries. Additionally, the government's initiatives to improve digital infrastructure and attract foreign investments in the data center sector are also expected to contribute to the market's growth.

Customer preferences: The demand for cloud-based solutions and data storage is on the rise in Mongolia, driven by the country's growing digital economy and increased internet penetration. This trend is further fueled by the government's efforts to promote digital transformation and attract foreign investment. As a result, there is a growing need for reliable and secure data centers, catering to the evolving needs of businesses and individuals in the country. This shift towards digitalization is also reflected in the increasing adoption of cloud-based services and software-as-a-service (SaaS) models in various industries.

Trends in the market: In Mongolia, the Data Center Market is experiencing a surge in demand for cloud computing services, as businesses and organizations shift towards digital transformation. This trend is expected to continue as the country's economy grows and modernizes. As a result, there is a growing need for reliable and secure data centers to support this growth. This presents opportunities for data center providers to expand their services and for businesses to enhance their digital capabilities. However, there may also be challenges in terms of infrastructure and connectivity, which could impact the efficiency and effectiveness of data centers. Stakeholders in the industry will need to closely monitor these trends and adapt accordingly to stay competitive in the evolving market.

Local special circumstances: In Mongolia, the Data Center Market is on the rise due to the country's unique geographical location between China and Russia. This strategic positioning has attracted foreign investments and partnerships, making Mongolia a key player in the regional data center market. Additionally, the country's nomadic culture has led to the adoption of mobile and cloud technologies, driving the demand for data centers. Moreover, Mongolia's government has implemented favorable policies and incentives to attract data center investments, further boosting the growth of the market.

Underlying macroeconomic factors: The Data Center Market in Mongolia is heavily influenced by macroeconomic factors such as the country's economic growth, infrastructure development, and government policies. With a rapidly growing economy and increasing investment in infrastructure, Mongolia is well-positioned to support the growth of the data center market. Additionally, the government's focus on promoting digitalization and technology advancements is expected to drive the demand for data centers. However, challenges such as limited access to financing and a small domestic market may hinder the market's growth potential. Nevertheless, the country's strategic location between China and Russia presents opportunities for Mongolia to become a regional hub for data centers, attracting international investments and boosting the market's growth.

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.