Data Center - Egypt

Egypt

Revenue in the Data Center market is projected to reach US$268.00m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$138.50m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 8.39%, resulting in a market volume of US$369.90m 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 Egypt has been experiencing significant growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Data Center market in Egypt have been shifting towards increased reliance on cloud computing and digital transformation. With the rise of e-commerce and online services, businesses in Egypt are increasingly looking to outsource their IT infrastructure to Data Centers. This allows them to focus on their core competencies while benefiting from the scalability, security, and cost-efficiency offered by Data Centers. Trends in the market indicate a growing demand for colocation services in Egypt. Colocation allows businesses to rent space in a Data Center facility and share resources, such as power and cooling infrastructure, with other tenants. This trend is driven by the need for cost optimization and flexibility, as businesses can scale their IT infrastructure according to their needs without incurring significant upfront costs. Another trend in the Data Center market in Egypt is the adoption of green technologies and energy-efficient practices. With increasing concerns about environmental sustainability, Data Center operators in Egypt are investing in renewable energy sources, energy-efficient cooling systems, and advanced power management technologies. This not only helps reduce operational costs but also positions Egypt as a sustainable and eco-friendly destination for Data Center services. Local special circumstances play a significant role in the development of the Data Center market in Egypt. The country's strategic location between Europe, Africa, and the Middle East makes it an attractive hub for international companies looking to establish a presence in the region. Egypt's robust telecommunications infrastructure, favorable business environment, and government support for the ICT sector further enhance its appeal as a Data Center destination. Underlying macroeconomic factors also contribute to the growth of the Data Center market in Egypt. The country's strong economic growth, increasing foreign direct investment, and government initiatives to promote digital transformation and smart cities create a favorable business environment for Data Center operators. Additionally, Egypt's large population and growing middle class drive the demand for online services, further fueling the need for Data Center infrastructure. In conclusion, the Data Center market in Egypt is experiencing significant growth due to customer preferences for cloud computing and digital transformation, the trend towards colocation and green technologies, local special circumstances such as Egypt's strategic location and favorable business environment, and underlying macroeconomic factors including strong economic growth and government initiatives. This growth is expected to continue as businesses in Egypt increasingly rely on Data Centers to meet their IT infrastructure needs.

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.