Data Center - United Arab Emirates

United Arab Emirates

Revenue in the Data Center market is projected to reach US$853.80m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$555.10m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.32%, resulting in a market volume of US$1,091.00m 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 United Arab Emirates has been experiencing significant growth in recent years.

Customer preferences: Customers in the United Arab Emirates are increasingly demanding high-quality and reliable data center services. They expect data centers to provide secure and scalable solutions to meet their growing business needs. Additionally, customers are seeking data centers that offer low latency and high-speed connectivity to ensure optimal performance for their applications and services.

Trends in the market: One of the key trends in the Data Center market in United Arab Emirates is the increasing demand for cloud services. As businesses in the country embrace digital transformation, there is a growing need for scalable and flexible cloud infrastructure. This trend is driven by factors such as the need for cost-effective solutions, improved data security, and the ability to access data from anywhere at any time. As a result, data center providers in the United Arab Emirates are expanding their cloud offerings to cater to this demand. Another trend in the market is the adoption of edge computing. With the proliferation of Internet of Things (IoT) devices and the need for real-time data processing, businesses are looking for data centers that are closer to the edge of their networks. This enables faster data processing and reduces latency, which is crucial for applications such as autonomous vehicles, smart cities, and industrial automation.

Local special circumstances: The United Arab Emirates has a strategic geographical location, making it an attractive hub for businesses operating in the Middle East and North Africa (MENA) region. This has led to an increase in demand for data center services in the country, as businesses seek to establish their presence in the region. Furthermore, the United Arab Emirates has made significant investments in digital infrastructure and technology. The government has launched initiatives such as the Dubai Data Initiative and the Abu Dhabi Economic Vision 2030, which aim to transform the country into a knowledge-based economy. These initiatives have created a favorable environment for data center providers, attracting both local and international companies to invest in the market.

Underlying macroeconomic factors: The growth of the Data Center market in United Arab Emirates can be attributed to several macroeconomic factors. The country has a strong and stable economy, driven by sectors such as oil and gas, tourism, and finance. This provides a solid foundation for businesses to invest in data center services. Additionally, the United Arab Emirates has a young and tech-savvy population, which is driving the demand for digital services. The government has also implemented policies to promote innovation and entrepreneurship, further fueling the growth of the data center market. In conclusion, the Data Center market in United Arab Emirates is experiencing significant growth due to customer preferences for high-quality and reliable data center services, the increasing demand for cloud services and edge computing, the strategic geographical location of the country, government initiatives to promote digital transformation, and a strong and stable economy. These factors have created a favorable environment for data center providers, attracting both local and international companies to invest in 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.