Data Center - Southern Africa

Southern Africa

Revenue in the Data Center market is projected to reach US$1.19bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$0.72bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 4.70%, resulting in a market volume of US$1.43bn 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 Southern Africa is experiencing significant growth and development.

Customer preferences: Customers in Southern Africa are increasingly demanding reliable and secure data center services to support their expanding digital infrastructure. They are looking for data centers that can provide high-speed connectivity, scalable solutions, and robust security measures to protect their valuable data. Additionally, customers are seeking data centers that are energy-efficient and environmentally friendly, as sustainability becomes a growing concern in the region.

Trends in the market: One of the key trends in the Data Center market in Southern Africa is the increasing adoption of cloud computing. As businesses in the region recognize the benefits of cloud-based solutions, they are relying on data centers to host their applications and store their data. This trend is driven by the need for flexibility, scalability, and cost-efficiency in IT infrastructure. Another trend in the market is the growing demand for edge data centers. With the proliferation of Internet of Things (IoT) devices and the need for real-time data processing, businesses in Southern Africa are looking for data centers that are closer to their operations. Edge data centers help reduce latency and improve the performance of applications and services, especially for industries such as healthcare, manufacturing, and logistics.

Local special circumstances: Southern Africa is a region with diverse economies and varying levels of technological development. While some countries in the region, such as South Africa, have well-established data center markets, others are still in the early stages of development. This presents both opportunities and challenges for data center providers operating in the region. In addition, the region faces unique challenges related to power supply and connectivity. Some countries in Southern Africa experience frequent power outages, which can disrupt data center operations. Furthermore, the availability and reliability of internet connectivity can vary across different parts of the region, impacting the quality of data center services.

Underlying macroeconomic factors: The growth of the Data Center market in Southern Africa is driven by several macroeconomic factors. The region is experiencing rapid urbanization and population growth, leading to increased demand for digital services and infrastructure. Furthermore, the expansion of e-commerce and digital banking in Southern Africa is driving the need for data centers to support these online transactions. In addition, the region is witnessing increased investment in renewable energy sources, such as solar and wind. This presents an opportunity for data centers to adopt sustainable energy solutions and reduce their carbon footprint. Overall, the Data Center market in Southern Africa is poised for continued growth as businesses in the region recognize the importance of digital transformation and the need for reliable and secure data center services. The adoption of cloud computing, the demand for edge data centers, and the focus on sustainability are driving the development of the market. However, challenges related to power supply and connectivity need to be addressed to ensure the long-term success of the data center industry in the region.

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.