Data Center - Sri Lanka

Sri Lanka

Revenue in the Data Center market is projected to reach US$385.80m in 2025.
Network Infrastructure dominates the market with a projected market volume of US$236.40m in 2025.
Revenue is expected to show an annual growth rate (CAGR 2025-2029) of 7.45%, resulting in a market volume of US$514.30m by 2029.
In global comparison, most revenue will be generated in the United States (US$137.50bn in 2025).

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 Sri Lanka is experiencing mild growth, influenced by factors such as the slow adoption of digital technologies, lack of awareness among consumers, and limited convenience of online services. The subdued growth rate can also be attributed to the challenges faced by the sub-markets of Servers, Storage, and Network Infrastructure. However, with increasing investments and government initiatives, the market is expected to see an upward trend in the near future.

Customer preferences: The growing importance of data security and protection has led to a rise in demand for data center services in Sri Lanka. With the increasing adoption of technology and internet usage, businesses and individuals are increasingly relying on data centers for secure data storage and management. This trend is expected to continue as the country experiences a demographic shift towards a more digitally savvy population. Additionally, the rise of e-commerce and online businesses is also driving the need for reliable and efficient data center infrastructure.

Trends in the market: In Sri Lanka, the Data Center Market is experiencing a surge in demand for cloud services and colocation facilities. With the government's initiatives to promote digitalization and the rise in e-commerce, there is a growing trend towards outsourcing data storage and management to third-party data centers. This trend is expected to continue in the coming years, driven by the need for cost-effective and secure data management solutions. As a result, there is a significant opportunity for data center providers to expand their services and cater to the increasing demand. This trend also highlights the importance of investing in robust and resilient data center infrastructure to ensure uninterrupted service delivery. Moreover, it presents an opportunity for other industry stakeholders, such as telecom companies and internet service providers, to collaborate with data center providers and offer bundled services to their customers. This collaboration can lead to a more efficient and reliable digital ecosystem in Sri Lanka.

Local special circumstances: In Sri Lanka, the Data Center Market is growing due to the country's strategic location and its increasing demand for digital services. With its close proximity to India, Sri Lanka serves as a key outsourcing destination for data center services. Additionally, the country's government has implemented policies to promote the growth of the digital economy, providing tax incentives and investing in infrastructure development. This has attracted foreign investments and led to the emergence of local data center providers. Furthermore, the unique cultural and regulatory landscape in Sri Lanka has also influenced the market dynamics, with a focus on data privacy and security, driving the adoption of advanced data center solutions.

Underlying macroeconomic factors: The Data Center Market in Sri Lanka is heavily influenced by macroeconomic factors such as the country's economic growth and stability, government policies and regulations, and investment in digital infrastructure. Sri Lanka's growing economy and increasing digital adoption have created a favorable environment for the data center market to thrive. Furthermore, the government's efforts to promote the digital economy and attract foreign investments have further boosted the growth of the data center market in the country. Additionally, the rising demand for cloud services and the increasing use of data-intensive technologies, such as Artificial Intelligence and Internet of Things, are also driving the growth of the data center market in Sri Lanka.

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.