Data Center

Revenue in the Data Center market is projected to reach US$195.70m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$126.90m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.76%, resulting in a market volume of US$259.00m 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 Qatar is witnessing moderate growth, influenced by factors such as increasing demand for cloud services, advancements in technology, and government initiatives. The sub-markets of Servers, Storage, and Network Infrastructure play a crucial role in driving the overall market growth. However, the subdued growth rate can be attributed to factors such as high cost of implementation and maintenance, limited resources, and lack of skilled professionals.

Customer preferences: The data center market in Qatar is witnessing a growing demand for cloud-based services, as businesses and individuals embrace remote work and virtual communication. This trend is driven by the need for efficient and secure data storage and transfer, along with the rising popularity of online collaboration tools. Additionally, with the country's young and tech-savvy population, there is a growing interest in advanced data analytics and artificial intelligence solutions to enhance business operations and decision-making processes.

Trends in the market: In Qatar, the Data Center Market is experiencing a surge in demand for cloud computing services, with companies increasingly adopting hybrid and multi-cloud strategies. This trend is being driven by the need for scalable and flexible IT infrastructure, as well as the rise of digital transformation initiatives. Furthermore, there is a growing trend towards edge computing, as businesses seek to reduce latency and improve performance for their applications. This has significant implications for industry stakeholders, as it presents opportunities for growth and innovation, but also poses challenges in terms of managing complex and diverse IT environments.

Local special circumstances: In Qatar, the Data Center Market is flourishing due to the country's strategic location as a gateway between East and West. The government's focus on diversifying the economy and investing in digital infrastructure has also contributed to the growth of the market. Additionally, the country's strict regulations and high standards for data security have attracted international companies to set up data centers in Qatar. These unique factors have created a favorable environment for the data center market to thrive in the country.

Underlying macroeconomic factors: The Data Center Market in Qatar is heavily influenced by macroeconomic factors that shape the overall business environment in the country. These factors include global economic trends, national economic health, fiscal policies, and other relevant financial indicators that impact market performance. For instance, the ongoing economic diversification efforts in Qatar, coupled with its stable political climate and strong investment in infrastructure, have created a favorable business environment for the data center market. Additionally, the country's strategic location and growing digitalization initiatives have attracted significant investments from global data center providers, further driving market growth.

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.