Servers - MENA

MENA

Revenue in the Servers market is projected to reach US$2.54bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.78%, resulting in a market volume of US$4.05bn by 2029.
The average Spend per Employee in the Servers market is projected to reach US$12.91 in 2024.
In global comparison, most revenue will be generated in the United States (US$47,260m in 2024).

Key regions: Japan, India, China, United Kingdom, Europe

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Analyst Opinion

The Data Center market in MENA is seeing minimal growth, influenced by factors such as increasing adoption of digital technologies, rising awareness of health among consumers, and the convenience of online health services.

Customer preferences: The MENA region is witnessing a rise in demand for cloud-based and virtualized servers, as organizations look to optimize their IT infrastructure and reduce costs. This trend is driven by the growing adoption of digital technologies and the need for agile and scalable solutions. Additionally, there is a growing preference for managed hosting services, as businesses focus on their core competencies and outsource their IT operations to specialized providers.

Trends in the market: In the MENA region, the Servers Market within the Data Center Market is experiencing a rapid growth in cloud adoption, with more businesses moving towards hybrid or multi-cloud environments. This is driven by the need for scalability, agility, and cost-efficiency. Additionally, there is a rising demand for edge computing solutions to support the increasing use of Internet of Things (IoT) devices. This trend is significant as it enables businesses to enhance their digital capabilities and improve their overall operations. It also presents opportunities for data center providers to offer specialized services and solutions. However, it also poses challenges in terms of data security and management, requiring industry stakeholders to develop robust strategies and partnerships to address these concerns.

Local special circumstances: In the MENA region, the Servers Market within the Data Center Market is impacted by unique regulatory circumstances. The governments in the region have implemented strict data localization policies, requiring companies to store their data within the country. This has led to the growth of local data centers, as well as international companies partnering with local providers. Additionally, the region's geographical location has made it a popular hub for intercontinental data traffic, further fueling the demand for data centers and server infrastructure.

Underlying macroeconomic factors: The Servers Market within the Data Center Market in MENA is heavily influenced by macroeconomic factors such as technological advancements, government policies, and overall economic stability. Countries with strong investment in digital infrastructure and favorable regulatory environments are experiencing higher growth in the market. The increasing demand for data storage and processing due to the rise in digitalization and e-commerce is also driving the growth of the Servers Market in the region. Additionally, the increasing adoption of cloud computing and the need for reliable and secure data centers are contributing to the growth of this market.

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.