Data Center - Israel

Israel

Revenue in the Data Center market is projected to reach US$1.67bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$1.05bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.64%, resulting in a market volume of US$2.16bn 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 Israel has been experiencing significant growth in recent years.

Customer preferences: Customers in Israel are increasingly demanding reliable and secure data center services to support their growing digital infrastructure needs. With the rise of cloud computing, big data analytics, and the Internet of Things (IoT), businesses in Israel are generating and storing vast amounts of data. As a result, there is a strong demand for data centers that can provide high-performance computing and storage capabilities, as well as robust security measures to protect sensitive information.

Trends in the market: One of the key trends in the Data Center market in Israel is the increasing adoption of colocation services. Many businesses in Israel are opting to outsource their data center operations to third-party providers, rather than building and managing their own facilities. This trend is driven by several factors, including the need for cost-effective solutions, access to specialized expertise, and the ability to scale infrastructure as needed. Colocation providers in Israel are expanding their facilities and investing in advanced technologies to meet the growing demand. Another trend in the market is the growing focus on sustainability and energy efficiency. Data centers are known for their high energy consumption, and as businesses in Israel become more conscious of their environmental impact, they are seeking data center solutions that are energy-efficient and environmentally friendly. Data center operators in Israel are investing in technologies such as advanced cooling systems, renewable energy sources, and energy-efficient hardware to reduce their carbon footprint.

Local special circumstances: Israel is known for its vibrant startup ecosystem and innovative technology sector. The country has a high concentration of tech companies and research institutions, which generate a significant amount of data. This has created a strong demand for data center services in Israel, as businesses require reliable and secure infrastructure to store and process their data. Additionally, Israel's geopolitical situation and the need for data sovereignty have also contributed to the growth of the Data Center market. Many businesses in Israel prefer to store their data within the country's borders to ensure compliance with local regulations and to mitigate the risk of data breaches.

Underlying macroeconomic factors: Israel's strong economy and favorable business environment have played a key role in the development of the Data Center market. The country has a highly skilled workforce, a robust technology sector, and a supportive regulatory framework that encourages innovation and investment. Additionally, the Israeli government has been actively promoting the development of the data center industry through various initiatives and incentives. These factors have attracted both domestic and international data center operators to establish a presence in Israel, further fueling the market growth. In conclusion, the Data Center market in Israel is experiencing significant growth due to customer preferences for reliable and secure data center services, the adoption of colocation services, the focus on sustainability and energy efficiency, the country's vibrant startup ecosystem, the need for data sovereignty, and the favorable macroeconomic factors. As businesses in Israel continue to generate and store increasing amounts of data, the demand for data center services is expected to further accelerate in the coming years.

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.