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Market Research Report

Middle East & Africa (MENA) Data Center Construction Market Outlook 2019-2035 : Growth Opportunities | Share-Size | COVID-19 Impact Analysis

Published Date :

2021-02-24

Report Pages :

429

Format :

PDF

Region Covered :

Middle East and Africa

Middle East & Africa (MENA) Data Center Construction Market Overview

The Middle East and Africa market is seen on the pediment of improvement. There is lot of transformation taking place in the world economy with the advent of internet.  Increasing use of smartphones, growing broadband connectivity, rising adoption of new technologies and colocation services are the growing factors propelling the growth of data centers construction market. The growth of internet penetration in the Middle East and Africa is the driving force which has led to the construction of data centers in the country. There are significant investments which are seen in the way to data centers construction. The investments in the data center market in the Middle East and Africa region is growing at a steady pace which is aided by construction of data center facilities by telecommunication providers , enterprises , government , cloud and colocation service providers. There are lots of investments done by the government in the data center market. Initiatives are taken and reforms are done in the data center market which will help the development of the economy as a whole. The providers of telecommunication are setting up their data centers with the hope to develop their business.

In the last few years, the Middle East data center construction market has witnessed the entry of hyper scale data center service providers. The recent trend in the yester years also shows the entry of other various data centers in the Middle East and Africa region. The growing application of cloud based SAAS solutions will be the predominant driver for increased hyper scale investments in the market. The investments are basically done with the view point of generation of revenue which can be of profitable nature for the economy as a whole. There are lots of brands who are playing well in the data center construction market. Middle East and Africa region have opened their doors for Alibaba, Amazon Web services and Microsoft for the construction of cloud services in the market. These brands are coming up with the newer concept to set up their data centers in the Middle East. Cloud deployment in the Middle East and Africa region is not well developed as compared to the other parts of the world but the service providers are rushing into a lucrative market. These bodies aim for economic and regional development as cloud technology is unlocking its potential of new technology such as block chain and artificial intelligence.

Data Center Construction Market Segmentation

Breakup by Construction Type:

  • Electrical Construction
  • UPS
  • Rack PDU (Power Distribution Unit)
  • Generators
  • Transfer Switches and Switchgears
  • Others
  • Mechanical Construction
  • Cooling Systems
  • Racks
  • Others

Breakup by Data Center Type:

  • Mid-Size Data Centers
  • Enterprise Data Centers
  • Large Data Centers

Breakup by Tier Standards:

  • Tier I & II
  • Tier III
  • Tier IV

Breakup by Vertical:

  • Public Sector
  • Oil & Energy
  • Media & Entertainment
  • IT & Telecommunication
  • Banking, Financial Services and Insurance (BFSI)
  • Healthcare
  • Retail
  • Others

Market Dynamics ( Growth Drivers, Restraints, Trends )

Growth Drivers

  • Cloud Adoption propelling the growth of Data Center Investment: There is huge investment in cloud done by different organizations. The government is taking initiatives to led the growth of cloud services in the region. The public cloud services market in the region is growing at a steady speed of 22.2 percent in 2017 and a total of $1.2 billion from 2016.The growth in PAAS and SAAS are indicators that the migration of application and workloads from on premises data centers have shifted to cloud .The development of cloud applications are fueling the growth in the cloud space. Research after the analysis proves that “Software vendors will continue to shift investments from on-premises license-based software to cloud-based offerings. “Modernization is also gaining momentum for the Middle East to go digital as far as cloud services are concerned.

  • Migration from Server Room to Colocation & Managed Services: There has been a transition from server room to colocation and managed services which are at peak in the market. The customers prefer to use managed services these days. There is streamline digital transformation with the most logical venue for hybrid IT services. Plus, make remote management efficient with our software and smart hands

  • Support from Government to Grow Digital Economy: There is lot of support from the government to initiate a data center. The government is funding the data centers for the technological growth of the country. Many reforms and initiatives have been taken by the government for the starting up of data centers. Public enterprises also play an important role for the same.

  • Big Data and IOT to Fuel Additional Growth: The cloud services also comes with a long Big Data and IOT which are adding fuel to fire. There are recent advancements in IOT and Big Data coming up strongly in the market. The momentum of the market is quiet high and the region is developing positively. The growth driver is quiet strong but it has been observed that the growth is not so strong as compared to other regions in the world.

Restraints:

  •  Location constraints for data centers: Due to the growing construction trend and urbanization and industrialization following the pace, there is lack of space in the construction of data centers. They require huge space as there is shortage of space in the region. There are other kinds of developments/ activities which are going on in the economy for the international / domestic progression. Data centers are in less number in the region. Space shortage is one of the restraining factors for Middle East and Africa region.

  • Issues with Power Outages and Fluctuations: There are shortages of power and electricity in the region. Due to this it is difficult to set up a data center in the Middle East and Africa region. These countries are still developing and there is less demographics as compared to the developing regions. The setting up of data center requires continuous power and electrification process. This is the most important restraining factor which is stopping its growth.

  • Budget constraints and Investment Support: Though the Middle East and Africa are the one of the richest countries of the world but simultaneously they are poor and have poor growth rate. The countries budget is allocated for other developments which are of utmost importance. The organizations do not support the growth and construction of data centers in these regions. Developing of other sectors is of highest priority.

Market Opportunities & Trends:

  • Increased Adoption of Prefabricated Data Center Solutions: There is opportunity for growth of data centers and solutions. The government is increasingly investing in the technological sector. There are huge opportunities for the adoption of data solutions for cloud services.

  • Investments to Improve Broadband Connectivity: There is a trend for making the city more internet proof. The penetration of the internet is of huge importance and there are greater opportunities for the scope of improvement in internet connectivity.

  • Rising Investments in Hyper scale Facilities: There are increased and rising investments in Hyper Scale data centers. The government is emphasizing on the growth of hyper scale data centers with cloud facilities. This is the rising trend which is seen in the present years.

  • Growing Emphasis on Renewable Energy in Data Centers: There is most important trend which is seen is that of data centers using renewable energy. The trend was an opportunity once and the natural resources are in abundant supply in the economy so the owners and government prefer to use renewable sources of energy.

Geographical Market (Dominate Market, Target Opportunities, etc)

Middle East and Africa center construction market by geography is fragmented into GCC, South Africa, Nigeria, Kenya and other rest Middle East countries. Africa is expected to witness a high CAGR growing round 13%.The growing internet penetration will lead to increase in cloud adoption across enterprises in Africa. Thereby we can say that the ever increasing e-commerce industry is expected to boost big data adoption in the region. Operators in the data centers countries such as UAE and South Africa will continue to drift towards renewable sources of energy to run their operations. Research after the analysis says that there is abundant supply of natural resources in the region due to which the data centers can run economically. South Africa is the leading player in the data center market in Africa with the presence of other multiple data centers in other African Countries like Nigeria, Angola, Morocco and Egypt etc. The demand for cloud services and smart city initiatives by the enterprises and government agencies is driving growth in big data and IOT technology thereby propelling the demand for Middle East and Africa data center construction market. Other countries which are interested in the data center investments are Kenya, Nigeria, Turkey and Saudi Arabia in the Middle east and Africa region. The target geographies are successful in the implementation.

Vendors' initiatives toward cost reduction of efficient infrastructure are expected to increase market growth in the MEA region. Infrastructure resellers and distributors are expected to compete with each other in the region. The demand for modular datacenters that reduce space in datacenters and support high-density operations is expected to grow during the forecast period. Partnerships with local and modular datacenter service providers will increase revenues for global vendors operating in the market. The need for installation, commissioning, and maintenance services will generate local job opportunities in the market.

COVID-19 impact on "Middle East & Africa (MENA) Data Center Construction Market"

The report analyses and includes complete detailed chapter of 50-70 pages about the short term & long terms impact of COVID-19 outbreak on each segment of "Middle East & Africa (MENA) Data Center Construction Market" along with government measures to support the sector. It also showcases the current market landscape during COVID, impact of the virus on leading companies, expected demand schedule and supply chain in the industry and other various major factors. This will help you identify those companies that may benefit from this pandemic as well as those that will lose out.

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Key questions answered in this research report

  • What is the total market size by 2035 and what would be the expected growth rate of sales?
  • What are the total sales in 2018-19 and what would be the expected demand over the forecast period?
  • What are the recent developments and business strategy of companies?
  • What are the market opportunities for the existing and entry level players?
  • What are the key market trends?
  • What are the factors which are driving this market?
  • What are the major barriers to market growth?
  • Who are the key vendors in this market space?

Reasons to buy this market study

  • Middle East & Africa (MENA) Data Center Construction Market Facilitate decision-making based on strong historic and forecast data for
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  • Position yourself to gain the maximum advantage of the Reasons to buy this market study
  • Middle East & Africa (MENA) Data Center Construction Market Facilitate decision-making based on strong historic and forecast data for
  • Develop strategies based on the latest regulatory framework
  • Position yourself to gain the maximum advantage of the Middle East & Africa (MENA) Data Center Construction Market’s growth potential
  • Identify key partners and business development avenues across the globe
  • Respond to your competitor’s business structure, strategy and prospects’s growth potential



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Middle East & Africa (MENA) Data Center Construction Market Outlook 2019-2035 : Growth Opportunities | Share-Size | COVID-19 Impact Analysis

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