Market Size of South Africa Data Center Server Industry
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2030 |
| Historical Data Period | 2019 - 2022 |
| CAGR (2024 - 2030) | 23.20 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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South Africa Data Center Server Market Analysis
The South Africa Data Center Server Market is expected to register a CAGR of 23.20% during the forecast period.
The South Africa data center server market reached a value of USD 1.9 billion in the previous year, and it is further projected to register a CAGR of 23.2% during the forecast period. The increasing demand for cloud computing among small and medium-sized enterprises (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.
- Under Construction IT Load Capacity: The upcoming IT load capacity of the South Africa data center market is expected to reach 828.92 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 Africa, which stretches over 45,000 Kilometers with landing points from Cape Town, Mtunzini, and Port Elizabeth in South Africa.
South Africa Data Center Server Industry Segmentation
A data center server is basically a high-capacity computer without peripherals like monitors and keyboards. It is a hardware unit installed inside a rack, having a central processing unit (CPU), storage, and other electrical and networking equipment, making them powerful computers that deliver applications, services, and data to end-user devices.
The South Africa data center server market is segmented by form factor (blade server, rack server, and tower server) and by end-user (it and telecommunication, BFSI, government, media and entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Form Factor | |
| Blade Server | |
| Rack Server | |
| Tower Server |
| End-User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Media & Entertainment | |
| Other End-User |
South Africa Data Center Server Market Size Summary
The South Africa data center server market is experiencing significant growth, driven by the increasing demand for cloud computing, particularly among small and medium-sized enterprises, and the need for enhanced data security regulations. The market is also benefiting from substantial investments by local players and the expansion of telecommunications infrastructure, including fiber and LTE networks. The transition to 5G technology is further propelling the market, with telecom vendors investing in data centers to support the growing penetration of 4G and the upcoming 5G wave. This technological advancement is expected to boost connectivity and digital services, thereby increasing the demand for data center servers.
The market is characterized by the adoption of advanced server technologies, such as blade servers, which offer space efficiency and cost-effectiveness, appealing to industry players. Major companies like Dell, HPE, Cisco, and Lenovo are focusing on expanding their server offerings to meet the growing needs of businesses adopting cloud computing, artificial intelligence, and IT services. The construction of new data centers and the expansion of existing ones are set to further drive market growth. The market is moderately consolidated, with key players maintaining a significant share and continuously innovating to cater to the evolving demands of the digital economy in South Africa.
South Africa Data Center Server Market Size - Table of Contents
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1. Market Dynamics
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Increasing Adoption of Cloud and IoT Services
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1.2.2 Fiber Connectivity Network Expansion in the Country
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1.3 Market Restraints
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1.3.1 Rising CapEx for data center construction
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1.4 Value Chain / Supply Chain Analysis
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1.5 Industry Attractiveness - Porter's Five Forces Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 Assessment of COVID-19 Impact
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2. MARKET SEGMENTATION
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2.1 Form Factor
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2.1.1 Blade Server
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2.1.2 Rack Server
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2.1.3 Tower Server
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2.2 End-User
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2.2.1 IT & Telecommunication
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2.2.2 BFSI
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2.2.3 Government
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2.2.4 Media & Entertainment
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2.2.5 Other End-User
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South Africa Data Center Server Market Size FAQs
What is the current South Africa Data Center Server Market size?
The South Africa Data Center Server Market is projected to register a CAGR of 23.20% during the forecast period (2024-2030)
Who are the key players in South Africa Data Center Server Market?
Dell Inc., Hewlett Packard Enterprise, Lenovo Group Limited, Cisco Systems Inc. and Fujitsu Limited are the major companies operating in the South Africa Data Center Server Market.
