South Africa Data Center Rack Market Size (2024 - 2029)

The South African data center rack market is experiencing significant growth, driven by the increasing demand for cloud computing among small and medium-sized enterprises, government regulations for local data security, and rising investments from domestic players. This growth is reflected in the expansion of IT load capacity and raised floor space, as well as the planned installation of a substantial number of racks, particularly in Johannesburg. Additionally, the development of submarine cable systems is set to enhance connectivity, further supporting the market's expansion.

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Market Size of South Africa Data Center Rack Industry

South Africa Data Center Rack Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period 2019 - 2022
CAGR (2024 - 2030) 15.50 %
Market Concentration High

Major Players

South Africa Data Center Rack Market Major Players

*Disclaimer: Major Players sorted in no particular order

South Africa Data Center Rack Market Analysis

The South Africa Data Center Rack Market is expected to register a CAGR of 15.5% during the forecast period.

The South African data center rack market reached a volume of over 92,000 in the previous year, and it is further projected to register a CAGR of 15.5% during the forecast period. The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country/region.

  • Under Construction IT Load Capacity: The upcoming IT load capacity of the South African data center market is expected to reach over 800 MW by 2029.
  • Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 4.4 million sq. ft by 2029.
  • Planned Racks: The country's total number of racks to be installed is expected to reach 220201 units by 2029. Johannesburg is expected to house the maximum number of racks by 2029.
  • Planned Submarine Cables: There are close to 9 submarine cable systems connecting South Korea, and many are under construction. One such submarine cable that is estimated to start service in 2023 is 2Africa, which stretches over 45,000 Kilometers with landing points from Cape Town, Mtunzini, and Port Elizabeth in South Africa.

South Africa Data Center Rack Industry Segmentation

A data center rack is a physical enclosure made up of usually steel housing electronic framework. It is designed to house servers, networking and communication devices, cables, and other data center computing peripherals.

The South Africa data center rack market is segmented by rack size (quarter rack, half rack, full rack) and by end user (IT & telecommunication, BFSI, government, and media and entertainment). The market sizes and forecasts are provided in terms of volume (units) for all the above segments.

Rack Size
Quarter Rack
Half Rack
Full Rack
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-Users
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South Africa Data Center Rack Market Size Summary

The South African data center rack market is experiencing significant growth, driven by the increasing demand for cloud computing, government regulations on data security, and substantial investments from local players. The market is characterized by a shift towards hyper-scale and wholesale data centers, which is boosting the installation of full racks. The adoption of cloud services is accelerating across various sectors, including government, healthcare, and finance, further propelling the demand for data center infrastructure. The expansion of telecommunications services, particularly the rollout of fiber and LTE networks, along with the upcoming 5G wave, is also contributing to the market's growth. This surge in digital connectivity and the rising number of active mobile connections are expected to enhance the demand for data centers, thereby increasing the need for racks.

The market is consolidated, with key players like CPS Technologies, Schneider Electric Chile S A, and Falcon Electronics (Pty) Ltd leading the charge. These companies are focusing on expanding their customer base and enhancing their market share through strategic collaborations and innovations. Recent developments, such as Eaton's launch of the Open Compute Project Open Rack v3 compatible solutions and Oracle's offering of single-rack Oracle Cloud systems, highlight the ongoing advancements in data center technology. The increasing digitalization across various end-user sectors, coupled with the expansion of e-commerce and social media usage, is driving the demand for data center construction, leading to a robust market for data center racks in South Africa.

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South Africa Data Center Rack Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Penetration of Cloud Enterprises in the Country

      2. 1.2.2 Growing Adoption of 5G and FTTH/B subscriptions

    3. 1.3 Market Restraints

      1. 1.3.1 High CaPex for Building Data Center Along With Security Challenges

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Buyers/Consumers

      2. 1.5.2 Bargaining Power of Suppliers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Rack Size

      1. 2.1.1 Quarter Rack

      2. 2.1.2 Half Rack

      3. 2.1.3 Full Rack

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-Users

South Africa Data Center Rack Market Size FAQs

The South Africa Data Center Rack Market is projected to register a CAGR of 15.5% during the forecast period (2024-2030)

CPS Technologies, Schneider Electric SE, Falcon Electronics (Pty) Ltd, Modac Data Centre Design and Eaton Corporation Plc are the major companies operating in the South Africa Data Center Rack Market.

South Africa Data Center Rack Market Report Snapshots

South Africa Data Center Rack Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)