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Data Center - Nigeria

Nigeria
  • Revenue in the Data Center market is projected to reach US$1.69bn in 2025.
  • Servers dominates the market with a projected market volume of US$717.59m in 2025.
  • Revenue is expected to show an annual growth rate (CAGR 2025-2029) of 9.52%, resulting in a market volume of US$2.44bn by 2029.
  • In global comparison, most revenue will be generated United States (US$137.46bn in 2025).

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.

In-Scope
  • 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
Out-Of-Scope
  • 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)
Data Center: market data & analysis - Cover

Market Insights report

Data Center: market data & analysis
CONTENTBOX_CAPTION_STUDY_DETAILS

    Revenue

    NOTES: Data was converted from local currencies using average exchange rates of the respective year.

    MOST_RECENT_UPDATE: Jul 2024

    SOURCE: Statista Market Insights

    NOTES: Data was converted from local currencies using average exchange rates of the respective year.

    MOST_RECENT_UPDATE: Jul 2024

    SOURCE: Statista Market Insights

    MARKET_INSIGHTS

    2017
    2018
    2019
    2020
    2021
    2022
    2023
    2024
    2025
    2026
    2027
    2028
    2029
    Arizton1,294.38
    Gartner1,0861,2601,2901,0741,2961,327.321,416.61,758.54
    Statista1,637.761,838.581,808.41,789.681,916.041,873.82,236.682,496.542,715.182,899.443,161.883,451.383,744.42
    Straits research1,155.78

    NOTES: The chart “Comparable Estimates” shows the forecasted development of the selected market from different sources. Please see the additional information for methodology and publication date.

    MOST_RECENT_UPDATE: Jul 2024

    Key Players

    MOST_RECENT_UPDATE: Mar 2024

    SOURCE: Statista Market Insights

    Analyst Opinion

    The Data Center Market in Nigeria is currently experiencing minimal growth, impacted by factors such as limited adoption of digital technologies, low levels of health awareness among consumers, and challenges in online service convenience. Despite the presence of sub-markets such as Servers, Storage, and Network Infrastructure, the overall market growth remains stagnant. This can be attributed to the country's slow economic development and inadequate infrastructure investment.

    Customer preferences:
    With the rapid growth of the digital economy in Nigeria, there has been a noticeable increase in demand for data center services. This is driven by a shift towards remote work and online education, as well as the growing popularity of e-commerce and digital entertainment. Additionally, the country's young and tech-savvy population is driving the demand for faster and more reliable internet connectivity, leading to a rise in demand for data center infrastructure. This trend is expected to continue as the Nigerian market becomes more digitally integrated and reliant on technology for daily activities.

    Trends in the market:
    In Nigeria, the Data Center Market is experiencing a surge in demand, driven by the country's rapid economic growth and increased adoption of digital technologies. This trend is expected to continue, with projections showing a 14% growth in the market by 2024. This growth is significant for industry stakeholders as it presents opportunities for expansion and investment. Additionally, the rise of cloud computing and big data analytics is driving the need for more advanced data centers, which will further propel the market's trajectory. This trend also has implications for the country's digital infrastructure, as a strong data center market is essential for supporting the growth of other industries, such as e-commerce and fintech.

    Local special circumstances:
    In Nigeria, the Data Center Market is experiencing growth due to the country's increasing internet penetration and government initiatives promoting digital transformation. The market is also influenced by the unique geographical and cultural diversity of the country, as well as regulatory policies that aim to attract foreign investments. This has led to the emergence of local data center providers catering to the needs of both domestic and international businesses. Additionally, the demand for data storage and processing services is driven by the growing e-commerce and digital services market in Nigeria.

    Underlying macroeconomic factors:
    The growth of the Data Center Market market in Nigeria is heavily impacted by macroeconomic factors such as the country's technological advancements, government policies, and overall economic health. As a developing country, Nigeria has seen significant investments in its digital infrastructure, leading to a growing demand for data centers. However, challenges such as regulatory barriers and limited funding for IT infrastructure could hinder market growth. Additionally, the country's population is rapidly adopting digital technologies, leading to a surge in data generation, further driving the need for data centers.

    Global Comparison

    NOTES: Data was converted from local currencies using average exchange rates of the respective year.

    MOST_RECENT_UPDATE: Jul 2024

    SOURCES: Statista Market Insights, Financial Statements of Key Players, National statistical offices

    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.

    Technology

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    Data Center: market data & analysis - BackgroundData Center: market data & analysis - Cover

    Key Market Indicators

    NOTES: Based on data from IMF, World Bank, UN and Eurostat

    MOST_RECENT_UPDATE: Jan 2025

    SOURCE: Statista Market Insights

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    Data centers - statistics & facts

    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.
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