Data Center - Western Asia

Western Asia

Revenue in the Data Center market is projected to reach US$7.15bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$4.29bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.18%, resulting in a market volume of US$9.65bn 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 Western Asia is experiencing minimal growth, influenced by factors such as the increasing demand for server, storage, and network infrastructure, and the rising awareness of the importance of data management and security. The convenience of online services is also driving growth in this market.

Customer preferences: As the demand for data storage and processing continues to grow in Western Asia, there has been a noticeable shift towards sustainability and energy efficiency in the Data Center Market. This is driven by the region's focus on reducing carbon emissions and increasing renewable energy usage. As a result, there has been an increase in the adoption of green data center solutions, such as using renewable energy sources and implementing energy-efficient cooling systems, to meet the region's growing data needs while also reducing its environmental impact. This trend is expected to continue as the region prioritizes sustainable development and addresses climate change concerns.

Trends in the market: In Western Asia, the Data Center Market is experiencing a surge in demand for cloud services, driven by the increasing adoption of digital transformation strategies by businesses. This trend is expected to continue as more companies prioritize agility and scalability in their operations. Additionally, the region is witnessing a rise in edge computing, allowing for faster data processing and reduced latency. These developments have significant implications for industry stakeholders, as they must keep up with the evolving technology landscape to remain competitive. Furthermore, the growing reliance on data centers for critical business operations highlights the need for robust security measures and reliable infrastructure. As a result, there is a growing demand for advanced solutions such as AI-powered security systems and energy-efficient data center designs.

Local special circumstances: In Western Asia, the Data Center Market is heavily influenced by the region's high demand for digital services and the government's initiatives to promote technology adoption. The market is also shaped by cultural factors, such as the preference for local data centers and the importance placed on data privacy. Additionally, the regulatory landscape in Western Asia, which varies from country to country, plays a significant role in shaping the market and creating unique challenges for data center providers. These factors contribute to the constantly evolving and dynamic nature of the Data Center Market in Western Asia.

Underlying macroeconomic factors: The data center market in Western Asia is heavily impacted by macroeconomic factors such as economic stability, government policies, and infrastructure investments. Countries with strong economic growth and stable political environments, such as the United Arab Emirates and Saudi Arabia, are witnessing significant growth in the data center market due to increased investments in digital infrastructure. Additionally, the growing demand for cloud computing and big data analytics is driving the growth of the data center market in the region, as businesses seek to improve their digital capabilities and stay competitive in the global 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.