Data Center - Nigeria

Nigeria

Revenue in the Data Center market is projected to reach US$1.54bn in 2024.
Servers dominates the market with a projected market volume of US$0.63bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 9.33%, resulting in a market volume of US$2.20bn 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 Nigeria has been experiencing significant growth in recent years.

Customer preferences: Customers in Nigeria are increasingly demanding data center services to support their growing digital infrastructure. With the rise of e-commerce, online banking, and other digital services, businesses in Nigeria are relying more heavily on data centers to store and process their data. This has led to a higher demand for data center services, including colocation, cloud computing, and managed hosting.

Trends in the market: One of the key trends in the Nigerian Data Center market is the increasing adoption of cloud computing. Many businesses in Nigeria are realizing the benefits of cloud computing, such as cost savings, scalability, and flexibility. As a result, there is a growing demand for cloud services, which is driving the growth of the Data Center market in the country. Another trend in the Nigerian Data Center market is the focus on energy efficiency and sustainability. Data centers consume a significant amount of energy, and there is a growing awareness of the environmental impact of these facilities. As a result, data center operators in Nigeria are investing in energy-efficient technologies and adopting sustainable practices to reduce their carbon footprint.

Local special circumstances: One of the key special circumstances in the Nigerian Data Center market is the lack of reliable power supply. Nigeria has been grappling with power shortages for many years, and this poses a challenge for data center operators. To overcome this challenge, data center operators in Nigeria are investing in backup power systems, such as generators and uninterruptible power supply (UPS) systems, to ensure uninterrupted power supply to their facilities.

Underlying macroeconomic factors: The growth of the Data Center market in Nigeria is also influenced by underlying macroeconomic factors. Nigeria is the largest economy in Africa and has a growing middle class. This has led to an increase in consumer spending and a greater demand for digital services. Additionally, the Nigerian government has been implementing policies to promote the growth of the digital economy, which is driving the demand for data center services. In conclusion, the Data Center market in Nigeria is experiencing significant growth due to increasing customer preferences for data center services, such as cloud computing, and the focus on energy efficiency and sustainability. Special circumstances, such as the lack of reliable power supply, and underlying macroeconomic factors, such as the growing middle class and government policies, are also contributing to the growth 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.