Data Center - Northern Africa

Northern Africa

Revenue in the Data Center market is projected to reach US$1.67bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$1.07bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.25%, resulting in a market volume of US$2.37bn 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 Data Center market in Northern Africa is experiencing subdued growth due to factors such as slow economic growth and limited investment in digital infrastructure. However, the market is expected to see growth in the coming years, driven by increasing demand for digital services and the adoption of cloud computing technologies.

Customer preferences: The growing availability of high-speed internet and advancements in technology have led to a rise in demand for cloud-based services, including data storage and management solutions. This trend is particularly evident in Northern Africa, where businesses and individuals are increasingly relying on digital platforms for day-to-day operations. Furthermore, with the rise of e-commerce and the need for secure online transactions, the demand for data centers has significantly increased in this region. As a result, there has been a shift towards investing in energy-efficient and sustainable data center infrastructure to meet the growing demand while also addressing environmental concerns.

Trends in the market: In Northern Africa, the Data Center Market is experiencing a surge in demand for cloud services, as businesses seek to modernize their IT infrastructure and reduce costs. This trend is expected to continue as the region's economy grows and more companies adopt digital transformation strategies. Additionally, there is a growing focus on energy efficiency and sustainability in the data center industry, with a push towards using renewable energy sources and implementing green technologies. This shift towards sustainable practices is not only beneficial for the environment, but also presents opportunities for industry stakeholders to differentiate themselves and attract environmentally-conscious customers.

Local special circumstances: In Northern Africa, the Data Center Market is experiencing growth due to the region's increasing internet connectivity and the government's focus on digital transformation. This has led to a demand for robust data center infrastructure to support the growing digital economy. Additionally, the region's unique climate and geopolitical landscape require data centers to have specialized cooling and security measures. These factors have led to the emergence of local data center providers that cater to the specific needs of the market, making it distinct from other data center markets.

Underlying macroeconomic factors: The Data Center Market in Northern Africa is heavily influenced by macroeconomic factors such as global economic trends, national economic health, fiscal policies, and other financial indicators. Favorable economic conditions and government support for technology and infrastructure development have led to significant growth in the data center market in this region. However, challenges such as limited funding and regulatory hurdles are hindering the market's potential for growth. Additionally, the increasing demand for digital transformation and the adoption of cloud computing in various industries are driving the demand for data centers in Northern Africa.

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.