Data Center - Uganda

Uganda

Revenue in the Data Center market is projected to reach US$50.73m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$29.28m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 10.35%, resulting in a market volume of US$83.02m 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 Uganda is facing a slow growth rate due to factors such as limited investment in digital infrastructure, lack of awareness about the benefits of data centers, and limited availability of skilled professionals. However, with the increasing demand for digital services and the government's efforts to promote digitalization, the market is expected to experience modest growth in the coming years, particularly in the sub-markets of Servers, Storage, and Network Infrastructure.

Customer preferences: Consumers in Uganda are becoming more tech-savvy and reliant on digital solutions for their daily needs. This has resulted in a growing demand for data center services to support the country's increasing internet penetration and digitalization of businesses. As the population becomes more connected, there is also a shift towards cloud-based solutions, driving the need for reliable and secure data storage and management. Additionally, the rise of e-commerce and online services has led to a greater need for efficient data processing and management, further fueling the demand for data centers.

Trends in the market: In Uganda, the Data Center Market is seeing a rise in cloud computing services, as more businesses shift towards remote work and digital operations. This trend is expected to continue as companies recognize the benefits of increased efficiency and cost savings. Additionally, there is a growing demand for data storage and security solutions, with the increasing amount of data being generated and stored. This presents opportunities for data center providers to offer innovative solutions to meet these needs. It also highlights the importance for businesses to invest in robust data management systems to stay competitive in the market.

Local special circumstances: In Uganda, the Data Center Market is experiencing growth due to the country's favorable geographical location, as it serves as a gateway to other African countries. Additionally, the government's push for digitalization and investment in the ICT sector has created a favorable environment for data center development. Furthermore, the country's growing population and increasing internet penetration are driving the demand for data center services. The market is also influenced by cultural factors, such as the preference for local data centers over foreign ones, and regulatory policies that promote data sovereignty.

Underlying macroeconomic factors: The Data Center Market in Uganda is impacted by macroeconomic factors such as the country's economic growth, government policies, and global economic trends. With Uganda's economy experiencing steady growth in recent years, there is a growing demand for data centers to support the increasing digitalization of businesses and services. Additionally, the government's investment in ICT infrastructure and favorable regulatory environment for the tech industry is driving market growth. However, challenges such as limited access to reliable electricity and high costs of internet connectivity can hinder the market's potential. Furthermore, the global trend towards cloud computing and the growing need for data storage and processing are also contributing to the growth of the Data Center Market in Uganda.

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.