UAE Data Center Market to be dominated by IT & Telecom industry till 2027
Growing demand for online
services and widespread adoption of IoT and cloud computing technology is
expected to drive the growth of the UAE data center market through the forecast
period, 2023-2027.
According to TechSci Research
report, “UAE Data Center Market
By Region, Competition Forecast & Opportunities, 2027”, the UAE data center market is expected
to witness impressive growth in 2023-2027. A data center is a facility composed
of storage systems, networked computers, and computing infrastructure that is
used by organizations to process, organize, store, and transmit large volumes
of data. High-end investments by the leading authorities for the development of
the IT sector and the availability of a skilled workforce that can handle the
complexities of the data center are the primary factors driving the growth of the
UAE data center market. Also, the market players are looking to improve the
efficiency of the data centers by streamlining the overall power usage. Modern
data centers need cooling solutions to ensure the proper functioning of the
servers, networking equipment, GPUs, and UPS systems, as the data center uses
more energy than the commercial spaces. The advent of solutions by the market
players that can enhance the performance of data centers is expected to
accelerate the demand for the UAE data center market over the next five years.
However, the high cost of data centers and data security and
privacy concerns may restrain the UAE data center market growth in the forecast
period.
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Data Center Market"
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The UAE data center market is
segmented into solution, type, end user industry, regional
distribution, and competitive landscape.
Based on the
solution, the market is divided into IT infrastructure, general infrastructure,
electrical infrastructure, mechanical infrastructure, and other infrastructure.
IT infrastructure is anticipated to hold the largest market share in the
forecast period owing to the rise in the investments made by public and private
market players for the advancement of the Information and Communication
Technology platform. IT infrastructure enhances the performance of the system
as it can make unique changes and make strategic changes as a response.
Based on the
type, the market is bifurcated into corporate and web hosting. The corporate
segment is projected to capture the highest market share in the forecast period.
The outbreak of COVID-19 resulted in the
shift of enterprises towards online sale platforms to stop the spread of novel
coronavirus. At present, many enterprises are using online sales platforms for
their operational works, which are expected to generate massive data volumes.
The need to efficiently manage the data at lower costs in organizations is
expected to fuel the segment growth over the next five years.
Based on the
end user industry, the market is divided into IT & telecom, government,
BFSI, healthcare, and others. The IT & telecom industry is the major
end-user of the data center market. They generate a large amount of data and
make the use of advanced technologies and equipment to manage their work. The
higher adoption of data center technology by small and medium enterprises and
the strong economic position of the country are expected to attract
international and national data center market players in the forecast period.
Major market
players operating in the UAE data center market are:
·
Khazna
Data Center
·
Equinix
·
UAE
telco Du
·
eHosting
DataFort
·
Etisalat
Telecommunication Company
·
Amazon
Web Services
·
Future
Digital Data Systems
·
Gulf
Data Hub
·
Moro
Hub
·
IBM
Corporation
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“The growing popularity of
e-commerce channels due to the digitization trend of the workplace and the
availability of high-speed internet connections in the UAE is generating large
data volumes. Data centers are considered a crucial part of the digital retail
industry. They help the e-commerce market players deliver digital solutions and
provide customers with a highly personalized shopping experience. Data centers
offer e-commerce channels with increased reliability, instant scalability,
always-on support, and a high level of security. The rise in the demand for the
online sales platform among consumers and massive data generation from
commercial websites is expected to propel the UAE data center market growth
till 2027” said Mr. Karan Chechi, Research Director with TechSci Research, a
research based global management consulting firm.
“UAE Data Center Market
By Solution (IT Infrastructure, General Infrastructure, Electrical
Infrastructure, Mechanical Infrastructure and Other Infrastructure), By Type
(Corporate and Web Hosting), By End User Industry (IT & Telecom,
Government, BFSI, Healthcare and Others), By Region, Competition Forecast &
Opportunities, 2027”, has evaluated the future
growth potential of UAE data center market and provides statistics &
information on market size, structure and future market growth. The report
intends to provide cutting-edge market intelligence and help decision makers
take sound investment decisions. Besides, the report also identifies and
analyzes the emerging trends along with essential drivers, challenges, and
opportunities in UAE data center market.
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