Data Center - Africa

Africa

Revenue in the Data Center market is projected to reach US$5.76bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$2.87bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 7.14%, resulting in a market volume of US$7.59bn by 2028.
In global comparison, most revenue will be generated in the United States (US$99.16bn 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.

For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

The Data Center market in Africa is experiencing significant growth and development in recent years.

Customer preferences: Customers in Africa are increasingly demanding reliable and high-quality data center services. With the growing adoption of cloud computing, big data analytics, and Internet of Things (IoT) technologies, businesses are generating vast amounts of data that need to be stored, processed, and accessed in a secure and efficient manner. As a result, there is a rising demand for data centers that can provide scalable infrastructure, robust connectivity, and advanced security features to meet the diverse needs of businesses across various industries.

Trends in the market: One of the key trends in the Data Center market in Africa is the expansion of international data center providers into the region. Global companies are recognizing the untapped potential of the African market and are investing in building data centers to cater to the growing demand. This trend is driven by the need to establish a local presence in order to offer low-latency services and comply with data sovereignty regulations. Additionally, there is a rise in partnerships and collaborations between local and international data center providers, enabling knowledge sharing and technology transfer.

Local special circumstances: Africa presents unique challenges and opportunities for the Data Center market. The continent has a diverse landscape, with varying levels of infrastructure development and connectivity across different countries. This necessitates the need for tailored solutions and localized data center facilities to cater to the specific needs of each region. Furthermore, Africa is experiencing a rapid growth in mobile and internet penetration, leading to an increased demand for data center services to support the digital transformation initiatives of businesses and governments.

Underlying macroeconomic factors: The growth of the Data Center market in Africa is also influenced by several macroeconomic factors. The continent is witnessing a steady economic growth and urbanization, which is driving the demand for digital services and creating a favorable environment for data center investments. Additionally, government initiatives to promote digitalization and attract foreign investment are playing a crucial role in shaping the data center landscape. Furthermore, the increasing focus on renewable energy sources and sustainability is driving the adoption of green data center practices in Africa. In conclusion, the Data Center market in Africa is experiencing significant growth and development due to customer preferences for reliable and high-quality data center services, the expansion of international data center providers into the region, unique local circumstances, and underlying macroeconomic factors. As businesses in Africa continue to embrace digitalization and generate massive amounts of data, the demand for data center services is expected to further increase, creating opportunities for both local and international players in the 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.