Data Center - Central Asia

Central Asia

Revenue in the Data Center market is projected to reach US$661.30m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$330.30m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 8.09%, resulting in a market volume of US$902.60m 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.

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Market

Region

Region comparison

Currency

Analyst Opinion

The Data Center market in Central Asia is experiencing significant growth and development, driven by various factors such as increasing demand for cloud services, digital transformation initiatives, and government support for data center infrastructure.

Customer preferences: Customers in Central Asia are increasingly adopting cloud services and digital technologies to drive business growth and improve operational efficiency. This has led to a surge in demand for data center services, as businesses seek secure and reliable infrastructure to host their applications and data. Additionally, customers are placing a greater emphasis on energy efficiency and sustainability in data center operations, leading to the adoption of green technologies and practices.

Trends in the market: One of the key trends in the Data Center market in Central Asia is the growth of colocation services. As businesses look to outsource their data center operations and focus on their core competencies, colocation providers offer a cost-effective solution by providing secure and reliable infrastructure. This trend is particularly evident in countries such as Kazakhstan and Uzbekistan, where the market for colocation services is rapidly expanding. Another trend in the market is the increasing adoption of edge computing. With the proliferation of Internet of Things (IoT) devices and the need for real-time data processing, businesses are looking to deploy data centers closer to the edge of their networks. This enables faster data processing and reduces latency, improving the overall user experience. As a result, there is a growing demand for edge data centers in Central Asia.

Local special circumstances: Central Asia is a region with diverse geopolitical and economic dynamics. Each country in the region has its own unique set of circumstances that influence the development of the Data Center market. For example, Kazakhstan, with its abundant natural resources and strategic location, has positioned itself as a regional hub for data center services. On the other hand, Uzbekistan, with its large population and growing digital economy, presents significant opportunities for data center providers.

Underlying macroeconomic factors: The Data Center market in Central Asia is also influenced by underlying macroeconomic factors. Economic growth, government policies, and investment climate play a crucial role in shaping the market dynamics. Countries with stable political environments and favorable investment policies are more attractive to data center providers. Additionally, the availability of skilled IT professionals and the presence of reliable power and telecommunications infrastructure are important factors for the growth of the market. In conclusion, the Data Center market in Central Asia is witnessing strong growth driven by increasing customer demand for cloud services, digital transformation initiatives, and government support. The adoption of colocation services and edge computing is on the rise, while each country in the region has its own unique circumstances that shape the market dynamics. The underlying macroeconomic factors such as economic growth, government policies, and investment climate also play a significant role in the development of 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.