Data Center - Southern Africa

Southern Africa

Revenue in the Data Center market is projected to reach US$1.37bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$0.82bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.78%, resulting in a market volume of US$1.73bn 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 Southern Africa has seen modest growth due to factors such as the adoption of digital technologies, increasing health awareness, and the convenience of online services. However, the minimal growth rate can be attributed to challenges in the sub-markets of Servers, Storage, and Network Infrastructure. These include limited infrastructure, high costs, and lack of skilled professionals.

Customer preferences: As society becomes more digitally connected, consumers in Southern Africa are increasingly seeking data center solutions to support their growing demand for online services. This trend is driven by a shift towards remote work and e-commerce, as well as a growing reliance on cloud-based applications. As a result, the data center market in the region is experiencing significant growth and investment, with a focus on providing reliable and secure infrastructure to support the evolving needs of consumers.

Trends in the market: In Southern Africa, the Data Center Market is experiencing a surge in demand for cloud services, as businesses shift towards remote work and virtual operations. This trend is expected to continue as digital transformation accelerates in the region. With the increasing adoption of cloud computing, there is also a rise in the use of data analytics and artificial intelligence, providing businesses with valuable insights and improving decision-making processes. This trend has significant implications for industry stakeholders, as it creates opportunities for data center providers and infrastructure developers to expand their offerings and cater to the evolving needs of businesses in the region. Additionally, it emphasizes the importance of investing in robust and secure data center infrastructure to support the growing demand for digital services.

Local special circumstances: In Southern Africa, the Data Center Market is shaped by a unique set of factors. The region's geographical landscape poses challenges for infrastructure development, leading to a higher demand for data center services. The cultural diversity in the region also influences market demand, with different countries having varying levels of technology adoption. Additionally, regulatory differences between countries impact the data center market, with some countries having strict data privacy laws in place. These factors contribute to the dynamic and evolving landscape of the Data Center Market in Southern Africa.

Underlying macroeconomic factors: The Data Center Market in Southern Africa is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with strong government support and robust investments in digital infrastructure are experiencing significant growth in the market, while those with regulatory challenges and limited funding are struggling to keep up. Additionally, the increasing demand for data storage and management solutions, driven by the growth of digitalization and e-commerce, is expected to further boost the market in the region.

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.