Servers - South Africa

  • South Africa
  • Revenue in the Servers market is projected to reach US$271.70m in 2024.
  • Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 5.94%, resulting in a market volume of US$342.20m by 2028.
  • The average Spend per Employee in the Servers market is projected to reach US$10.94 in 2024.
  • In global comparison, most revenue will be generated in the United States (US$36,230m in 2024).

Key regions: Japan, Europe, Indonesia, United Kingdom, China

 
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Analyst Opinion

The Servers market in South Africa is experiencing significant growth and development.

Customer preferences:
Customers in South Africa are increasingly demanding servers that offer high performance, scalability, and reliability. They are looking for servers that can handle large amounts of data and support advanced applications and technologies such as cloud computing, big data analytics, and virtualization. Additionally, customers are also placing a strong emphasis on energy efficiency and sustainability, as they seek to reduce their carbon footprint and lower operating costs.

Trends in the market:
One of the key trends in the Servers market in South Africa is the increasing adoption of cloud computing. Many businesses in the country are transitioning from traditional on-premises infrastructure to cloud-based solutions, which require robust and scalable servers. This trend is driven by the need for flexibility, cost savings, and improved accessibility to data and applications. As a result, there is a growing demand for servers that can support cloud deployments and provide high-performance computing capabilities. Another trend in the market is the rising popularity of virtualization technology. South African businesses are leveraging virtualization to optimize their server resources, improve efficiency, and reduce costs. Virtualization allows multiple virtual servers to run on a single physical server, enabling better utilization of computing resources. This trend is driving the demand for servers that can handle virtualization workloads and provide the necessary performance and scalability.

Local special circumstances:
South Africa has a rapidly growing technology sector, with a strong focus on innovation and digital transformation. The country is home to many startups and tech companies that are driving the demand for servers. Additionally, the government is actively promoting the adoption of digital technologies and investing in infrastructure development, which further fuels the demand for servers. However, the Servers market in South Africa also faces some challenges. The country has a relatively small IT budget compared to developed economies, which can limit the adoption of high-end servers. Additionally, there is a shortage of skilled IT professionals in the country, which can impact the implementation and management of server infrastructure.

Underlying macroeconomic factors:
The growth of the Servers market in South Africa is supported by several macroeconomic factors. The country has a growing economy and a rising middle class, which is driving the demand for digital services and technology solutions. Additionally, South Africa has a young and tech-savvy population, which is increasingly connected and reliant on digital technologies. The government's focus on digital transformation and investment in infrastructure also contribute to the growth of the Servers market. In conclusion, the Servers market in South Africa is experiencing significant growth and development, driven by customer preferences for high-performance, scalable, and energy-efficient servers. The increasing adoption of cloud computing and virtualization technology are key trends in the market. The local special circumstances, such as the growing technology sector and government support for digital transformation, further fuel the demand for servers. The underlying macroeconomic factors, including a growing economy and a young population, support the growth of the Servers market in South Africa.

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.

Overview

  • Revenue
  • Key Players
  • Analyst Opinion
  • Global Comparison
  • Methodology
  • Key Market Indicators
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