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 has seen a slow growth rate due to factors such as limited investment in IT infrastructure and rising competition from neighboring regions. Despite this, the market is expected to experience a gradual increase in demand for servers, storage, and network infrastructure as businesses continue to adopt digital technologies and prioritize data management. Additionally, the region's increasing focus on improving healthcare services and advancements in technology are also driving the growth of the data center market.

Customer preferences: The Data Center Market in Western Asia is experiencing a shift towards sustainable and energy-efficient solutions, driven by growing environmental concerns and stricter regulations. This has led to a rising demand for green data centers that utilize renewable energy sources and adopt efficient cooling technologies. Additionally, there is an increasing preference for cloud-based services, as they offer cost savings, scalability, and reduced energy consumption. This trend is influenced by the region's growing tech-savvy population and the need for reliable and secure data storage and management.

Trends in the market: In Western Asia, the Data Center Market is experiencing a trend towards increased adoption of cloud computing. This is driven by the need for greater efficiency, scalability, and cost savings in data management. Additionally, there is a growing focus on data security and compliance, leading to the implementation of advanced security measures in data centers. These trends are significant as they are shaping the future of data center operations in the region, with a shift towards a more digital and connected landscape. This has important implications for industry stakeholders, as they must adapt to meet the changing demands of their customers and ensure they remain competitive in the market.

Local special circumstances: In Western Asia, the Data Center Market is growing due to the region's strategic location between Europe, Asia, and Africa, making it a hub for international businesses. Additionally, the increasing government investments in ICT infrastructure and favorable regulatory policies have contributed to the market's growth. Moreover, the cultural importance placed on data security in the region has led to the implementation of advanced security measures in data centers, making Western Asia a preferred location for businesses looking for secure data storage options.

Underlying macroeconomic factors: The Data Center Market in Western Asia is heavily impacted by macroeconomic factors such as technological progress, government policies, and infrastructure development. Countries with strong investment in digital infrastructure and supportive regulations are experiencing a robust growth in the data center market. In contrast, nations with regulatory challenges and limited funding for digital infrastructure face slower market growth. Furthermore, the increasing demand for data storage and processing capabilities, driven by the growing use of cloud-based technologies and the digitization of businesses, is also contributing to the growth of the data center market in Western Asia. These factors, combined with favorable economic conditions, are expected to drive the growth of the data center 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.