Data Center - Zambia

Zambia

Revenue in the Data Center market is projected to reach US$26.91m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$12.35m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.38%, resulting in a market volume of US$36.66m 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 Zambia is experiencing minimal growth due to various factors such as limited adoption of digital technologies, low health awareness among consumers, and limited availability of online health services. These factors have hindered the overall growth rate of the market, especially in sub-markets such as Servers, Storage, and Network Infrastructure. However, with increasing government initiatives and investments in digital infrastructure, the market is expected to witness significant growth in the coming years.

Customer preferences: As the use of technology continues to grow in Zambia, there is a notable shift towards cloud-based data storage solutions in the Data Center Market. This is driven by the increasing demand for remote work and online learning, as well as the need for secure and reliable data management. Additionally, the rise of e-commerce and digital payment options has led to a higher demand for data center services to support these transactions. This trend is expected to continue as the country's digital landscape evolves and adapts to the changing needs of consumers.

Trends in the market: In Zambia, the Data Center Market is experiencing a rise in demand for cloud computing services, with more businesses opting for virtual infrastructure to minimize operational costs and improve scalability. This trend is significant as it highlights the country's growing digital economy and the need for reliable and secure data storage solutions. Furthermore, it presents opportunities for data center providers to expand their services and cater to the evolving needs of businesses in Zambia. Additionally, there is a growing trend of implementing green data center solutions, driven by the government's initiatives to reduce carbon emissions and promote sustainable development. This presents potential implications for industry stakeholders to invest in eco-friendly data center solutions and stay competitive in the market.

Local special circumstances: In Zambia, the Data Center Market is growing due to the country's increasing use of mobile and internet technologies, as well as the government's efforts to promote digitalization. The market is also influenced by the country's geographical location, with its landlocked status making it a strategic hub for data center services in the region. Additionally, Zambia's cultural diversity and regulatory environment play a role in shaping the demand for data center solutions and services.

Underlying macroeconomic factors: The Data Center Market in Zambia is heavily impacted by macroeconomic factors, such as the country's overall economic health and government policies. The global economic climate also plays a role, as it affects the demand for data center services and the availability of foreign investment. Additionally, fiscal policies, such as tax incentives and subsidies, can greatly influence the growth and competitiveness of the market. Other financial indicators, such as inflation rates and currency fluctuations, can also significantly impact the performance of the data center market in Zambia.

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.