Dublin, Oct. 15, 2019 (GLOBE NEWSWIRE) -- The "Data Center Market in Africa - Industry Outlook and Forecast 2019-2024" report has been added to ResearchAndMarkets.com's offering.
The African data center market is expected to grow at a CAGR of over 13% during the period 2018-2024.
Key Market Insights
- This report provides the following insights into the market for the forecast period 2019-2024.
- It offers comprehensive insights into current industry trends, trend forecast, and growth drivers about the market.
- The report provides the latest analysis of market share, growth drivers, challenges, and investment opportunities.
- It offers a complete overview of market segments and the regional outlook of the market.
- The report offers a detailed overview of the vendor landscape, competitive analysis, and key market strategies to gain competitive advantage.
The increasing procurement of renewable energy sources is expected to be a significant driver for the Africa data center market. The growth in power consumption and the need for reliable power sources are also driving hyperscale service providers to purchase clean and renewable energy sources to power their facilities in Africa. Therefore, the availability of renewable energy sources in Africa sources is expected to drive hyperscale data center to adopt renewable energy infrastructure.
The concept of developing smart cities in Africa is likely to increase the demand for on-premise modular data center solutions in Africa. The Transform Africa Summit unveils the Smart Cities' Blueprint, which showcases the commitment of countries such as Rwanda, Nigeria, Ghana, and Ethiopia to develop and build smart cities. Huawei, a Chinese Telecom provider, along with Kenya government, has commenced a smart city initiative in Kenya, which will bring modular facilities in various locations across the city. Hence, these initiatives in the African continent are expected to drive the data center market in Africa.
The following factors are expected to contribute to the growth of the Africa data center market during the forecast period:
- Digitization Fuelling Investment in Data Centers
- Cloud Adoption Propelling Investment in Data Centers
- Migration from Server Rooms to Colocation and Managed Services
- Adoption of Hyperconverged and Converged Infrastructure Platforms
- Investments to Improve Broadband Connectivity
Africa Data Center Market: Segmentation
This research report includes detailed market segmentation by IT infrastructure, electrical infrastructure, mechanical infrastructure, general construction, tier standards, and geography. The Africa data center market by severs is growing at a significant pace due to increased internet penetration.
The government initiatives to establish the digital economy in Africa is likely to act as a strong catalyst for the adoption of IT infrastructure, especially severs. In Africa, the growing data generation will continue to increase the demand for high-performance storage infrastructure solutions. The increase in the data traffic and the decline in the price of 10GE switches are the major drivers for the Africa data center market by the network segment.
The UPS market in Africa is expected to witness growth as these systems are critical for continuous operations, and the prevention of infrastructure failures. The generator market in Africa will continue to grow due to the increased construction of large and mega data center facilities and the unreliable in the power grid connectivity. The increased construction of data center solutions in Africa is expected to increase the demand for transfer switches and switchgears during the forecast period. However, the use of switches will vary significantly based on capacity, cost, mean time between failures (MTBF), switching time, and design.
The data center facilities in Africa support free cooling systems. The market for cooling systems in Africa is likely to depend on the construction of mega and hyperscale facilities, especially 10 MW capacity. The adoption of cooling systems depends on the IT load, system capacities, expenditure, and future requirements.
While several small facilities in Africa use DX-based CRAC units that operate at a low rack power density of around 3 kW, medium and large data center install CRAH units. With facilities now being built to handle more than 5 MW of IT load, the use of multiple CRAC & CRAH units in data halls is growing. Also, the adoption of air-cooled CRAC systems installed in line with cooling units that uses refrigerant or glycol-based cooling is expected to grow during the forecast period.
The Africa data center market is currently witnessing an increase in the construction of Greenfield projects. The development of mega facilities in Africa will drive the market for sustainable building development. Also, the growing investment in submarine cable projects will increase the need to establish point-of-presence facilities that are modular.
The increased awareness of the use of redundant infrastructure has significantly led to the decline of Tier I facilities in the past five years. While Tier II facilities in Africa have minimum redundancy, particularly in UPS and PDU systems, the colocation cost is low. Several under-developed projects in Africa largely fall in the tier III category. This trend is expected to continue during the forecast period.
Stringent environment regulations and the need to follow sustainable business practices are driving new facilities to be designed as per Tier III standards with a minimum of N+1 redundancy. The growth in the rack power density and critical data center applications is expected to shift many service operators to the Tier IV category during the forecast period. The incorporation of flexible designs is expected to configure up to 2N+1 redundancy in the tier IV data center in Africa.
Africa Data Center Market: Geography
South Africa is witnessing major development in Africa. Cities such as Cape Town and Johannesburg are the most preferred locations for data center construction. The South Africa data center market is expected to witness major investments during the forecast period due to the increasing number of smartphone users and strong internet penetration. Also, the market is seeing increased adoption of cloud-based solutions among enterprises. With the highest internet penetration, Kenya is emerging as a critical destination for investment.
Key Vendor Analysis
The Africa data center market is in the nascent stage, and it has strong growth potential as many enterprises are migrating from server rooms to cloud or colocation platforms. Cisco, Dell Technologies, HPE, Huawei, Lenovo, and IBM are the leading players in the market. The competition is mostly based on pricing as several enterprises are procuring IT infrastructure under stringent budget constraints. The adoption of converged and hyperconverged infrastructure solutions is likely to increase during the forecast period.
Key Topics Covered
1 Research Methodology
2 Research Objectives
3 Research Process
4 Scope & Coverage
4.1 Market Definition
4.2 Base Year
4.3 Scope of the study
4.4 Market Segments
4.4.1 Market Segmentation by Infrastructure
4.4.2 Market Segmentation by IT Infrastructure
4.4.3 Market Segmentation by Electrical Infrastructure
4.4.4 Market Segmentation by Mechanical Infrastructure
4.4.5 Market Segmentation by Cooling Systems
4.4.6 Market Segmentation by General Construction
4.4.7 Market Segmentation by Tier Standards
4.4.8 Market Segmentation by Geography
5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation
6 Market at a Glance
7 Introduction
7.1 Data Center Site Selection Criteria
7.1.1 Key
7.2 Growth of Internet Users in Africa
7.3 Growth of Smartphone users in Africa
7.4 Broadband Speed in Africa
7.5 Renewable Energy Capacity Installation in Africa
7.6 Data Center Projects in Africa
8 Market Dynamics
8.1 Market Growth Enablers
8.1.1 Growing Digitization Fueling Data Center Investment
8.1.2 Cloud Adoption Propelling Data Center Investment
8.1.3 Big Data and IoT Spending to Fuel Data Center Investment
8.1.4 Migration from Server Rooms to Colocation and Managed Services
8.2 Market Growth Restraints
8.2.1 Data Center Power Outages and Lack of Reliability
8.2.2 Dearth of Skilled Workforce
8.2.3 Location Constraints for Data Center Construction
8.3 Market Opportunities and Trends
8.3.1 Growing Emphasis on Renewable Energy in Data Centers
8.3.2 Smart City Initiatives to Grow Modular/Edge Data Center Deployment
8.3.3 Increased Adoption of Hyperconverged and Converged Infrastructure Platforms
8.3.4 Investments to Improve Broadband Connectivity
8.3.5 Faster Penetration of All Flash and Hybrid Storage in Africa
9 Market Landscape
9.1 Market Overview
9.2 Market Size & Forecast
9.3 Five Forces Analysis
10 Market By Infrastructure
10.1 Market Snapshot & Growth Engine
10.2 Market Overview
10.3 IT Infrastructure
10.4 Electrical Infrastructure
10.5 Mechanical Infrastructure
10.6 General Construction
11 IT Infrastructure
11.1 Market Segment Snapshot & Growth Engine
11.2 Server Infrastructure
11.3 Storage Infrastructure
11.4 Network Infrastructure
12 Electrical Infrastructure
12.1 Market segment Snapshot & Growth Engine
12.2 UPS Systems
12.3 Generators
12.4 Transfer Switches & Switchgears
12.5 Rack Power Distribution Units
12.6 Other Electrical Infrastructure
13 Mechanical Infrastructure
13.1 Market segment Snapshot & Growth Engine
13.2 Cooling Systems
13.3 Racks
13.4 Other Mechanical Infrastructure
14 Cooling Systems
14.1 Market segment Snapshot & Growth Engine
14.2 CRAC & CRAH Units
14.3 Chiller Units
14.4 Cooling Towers & Dry Coolers
14.5 Other Cooling Units
15 Cooling Technique
15.1 Market segment Snapshot & Growth Engine
15.2 Air-Based Cooling Techniques
15.3 Liquid-Based Cooling Techniques
16 General Construction
16.1 Market segment Snapshot & Growth Engine
16.2 Building Development
16.3 Installation & Commissioning Services
16.4 Building Design
16.5 Physical Security
16.6 DCIM
17 Tier Standards
17.1 Market segment Snapshot & Growth Engine
17.2 Overview of Tier Standards
17.3 Tier I & II
17.4 Tier III
17.5 Tier IV
18 Geography
18.1 Regional Snapshot & Growth Engine By Investment
18.2 Regional Snapshot & Growth Engine By Area
18.3 Regional Snapshot & Growth Engine By Power Capacity
19 South Africa
20 Nigeria
21 Kenya
22 Other African Countries
23 Competitive Landscape
23.1 Key Market Participants
23.1.1 IT Infrastructure
23.1.2 Electrical Infrastructure
23.1.3 Mechanical Infrastructure
23.1.4 General Construction
24 Prominent Data Center Critical (IT) Infrastructure Providers
24.1 Cisco
24.2 Dell Technologies
24.3 Hewlett Packard Enterprise (HPE)
24.4 Huawei
24.5 IBM
24.6 Arista Networks
24.7 Atos
24.8 Broadcom
24.9 Lenovo
24.10 NetApp
25 Prominent Data Center Support Infrastructure Providers
25.1 ABB
25.2 Caterpillar
25.3 Cummins
25.4 Eaton
25.5 Schneider Electric
25.6 Stulz
25.7 Rittal
25.8 Shenzhen Envicool Technology
25.9 KINOLT (EURO-DIESEL)
25.10 Hitec Power Protection
25.11 LEGRAND Group
25.12 MTU Onsite Energy (Rolls-Royce Power Systems AG)
25.13 Vertiv
26 Prominent Data Center Contractors
26.1 Aveng Grinaker
26.2 Atkins
26.3 Concor
26.4 Future-Tech
26.5 Huawei
26.6 Edarat Group
26.7 ETIX Everywhere
26.8 Harinsa Qatar
27 Prominent Data Center Investors
27.1 Africa Data Centers
27.2 MainOne
27.3 Icolo.io
27.4 Teraco Data Environments
27.5 Internet Solutions
27.6 Cloud Exchange
27.7 Medasys
27.8 Medallion Communications
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