Egypt Data Center Market - Industry Trends and Forecast to 2030

Egypt Data Center Market Analysis and Size

The Egypt data center market is fragmented in nature, as it consists of many global players and regional players as well. The presence of these companies produces competitive data center solutions, products, and services with various features and characteristics at a competitive price. Market players and businesses involved can offer products and services for different budgets due to the presence of these players at regional and international levels. Expanding digitalization in business operations and an increase in technological advancement across IT Sector in Egypt is expected to drive market growth. In addition, the growing popularity of cloud-based solutions is expected to further boost the market growth. However, the unreliable infrastructure of data centers in the country is expected to restrain market growth. Moreover, the high complexity involved in data center construction and hindrance in the data center supply chain is expected to pose a challenge to market growth. However, the rising importance of data analytics in industries and the emergence of 5G across the globe are expected to provide lucrative opportunities for market growth.

Data Bridge Market Research analyzes that the Egypt data center market is expected to reach USD 1,138.67 million by 2030 from USD 490.62 million in 2022, growing with a substantial CAGR of 12.8% in the forecast period of 2023 to 2030.

Market Definition

A data center is a facility composed of networked computers, storage systems, and processing equipment. It is a crucial asset for daily operations since a corporation often largely depends on the applications, services, and data it contains. Organizations use data centers to gather, analyze, store, and distribute massive amounts of data. In recent years, data centers have seen tremendous change as company IT requirements continue to shift toward on-demand services. Businesses are upgrading their data centers with modern architecture to allow this level of application agility and mobility. A modern data center uses virtualization, the cloud, and software-defined networking to provide application workloads everywhere, including physical data centers, multicloud environments, and hybrid environments. This evolution allows for flexible scaling to handle increasing network, storage, and computing demand.

Egypt Data Center Market Dynamics

This section deals with understanding the market drivers, advantages, opportunities, restraints, and challenges. All of this is discussed in detail below:

Drivers

•  Expanding Digitalization in Business Operations

The digitalization or the usage of digital processes to improve business operations is increasing with the usage of relevant components to modernize the business, leading to the evolution of the working process and revenue growth to achieve future success. Converting non-digital things into digital formats makes sharing, saving, and searching for information easier, which further leads to business operations automation by developing automatic workflows or marketing outreach sequences.

Digitalization has a wide range of benefits and requires proper maintenance and additional equipment and infrastructure to manage the working system properly.

• Increase in Technological Advancement Across IT Sector in Egypt

Technological advancements have risen and gained a prominent role in economic growth, national security, and international competitiveness. Technological advancement is evolving automation, retargeting, and many other advancements in the IT sector. The adoption of robotic technology connected with internet facilities is gaining a new trend.

Moreover, the key market players in the IT sector are actively developing various solutions and new products according to the evolution of technology. Moreover, the interplay between humans and technology is gaining higher interest in the market, resulting in the prevailing importance and major role in the IT sector of Artificial Intelligence (AI), cloud solutions, Machine Learning (ML), cyber security, voice assistant, and many others.

Restraint/Challenge

• Unreliable Infrastructure of Data Centers in the Country

The data center plays a significant part in IT needs to oversee and store the tremendous assets that are significant for any association's consistent work. As the name sounds, it appears that the data center is a solitary item yet plays a colossal part in the present business. The various specialized components have made it. The primary work of the data center is figuring, putting away, and organizing. While a large number of individuals deal with information and organization, these data centers make that work more straightforward, agreeable, and reliable. Dependability, effectiveness, security, and consistent advancement are the significant job of data centers.

Opportunity

• Surge in the Adoption of Artificial Intelligence and Machine Learning

Businesses across the Middle East have begun to move their concentration toward rising and popular innovations such as Artificial Intelligence and Machine Learning. It is possible that they can push ahead with the changing times or will be abandoned. AI represents an opportunity not only to transform private furthermore public areas, yet guarantees advantages to residents that could be significant in acknowledging individual desires moderately and at scale.

Recent Developments

• In December 2022, Amazon Web Services, Inc. announced the availability of AWS Outposts in Egypt, providing businesses with a powerful solution to extend their AWS infrastructure and services to on-premises and edge locations. AWS Outposts offers a fully managed, consistent hybrid experience, allowing workloads to benefit from low-latency access to local data processing and seamless migration of applications with system interdependencies. With Outposts, organizations in Egypt can now meet data residency requirements by running their workloads and data within the country's on-premises facilities while connecting to the nearest AWS Region for management and operations. This development significantly enhances AWS's presence in Egypt's data center market, providing businesses with greater flexibility and scalability for their cloud computing needs
• In April 2022, Telecom Egypt unveiled EG-IX, Egypt's inaugural open-access internet exchange, housed within its premier certified tier III data center in Smart Village, West Cairo. Leveraging over 25 years of AMS-IX's expertise, EG-IX positions Telecom Egypt as a leading player in the nation's digital landscape. This strategic move strengthens Egypt's connectivity and marks a significant leap towards advanced internet exchange services. This development increases the company's potential for the growing digital sector in the region.

Egypt Data Center Market Scope

The Egypt data center market is segmented into six notable segments based on type, infrastructure type, tier standard, size, location, and end user. The growth amongst these segments will help you analyze meager growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Colocation Data Centers
• Cloud Data Center
• Enterprise Data Center
• Managed Services Data Centers
• Hyperscale Data Center

On the basis of type, the market is segmented into colocation data centers, cloud data center, enterprise data center, managed services data centers, and hyperscale data center.

Infrastructure Type

• Electrical Infrastructure
• Mechanical Infrastructure
• General Infrastructure
• Services

On the basis of infrastructure type, the market is segmented into electrical infrastructure, mechanical infrastructure, general infrastructure, and services.

Tier Standards

• Tier I
• Tier II
• Tier III
• Tier IV

On the basis of tier standards, the market is segmented into tier III, tier IV, tier II, and tier I.

Size

• Large Data Center
• Medium Size Data Center
• Small Data Center

On the basis of size, the market is segmented into large data center, medium size data center, and small data center.

Location

• Brownfield
• Greenfield

On the basis of location, the market is segmented into brownfield and greenfield.

End User

• IT and Telecommunication
• Banking, Financial Services and Insurance (BFSI)
• Government and Defence
• Retail and E-Commerce
• Media and Entertainment
• Manufacturing
• Healthcare
• Energy and Utility
• Research and Academic
• Others

On the basis of end user, the market is segmented into IT and telecommunication, Banking, Financial Services and Insurance (BFSI), government and defence, retail and e-commerce, media and entertainment, manufacturing, healthcare, energy and utility, research and academic, and others.

Egypt Data Center Market Country Analysis/Insights

The Egypt data center market is analyzed, and market size insights and trends are provided by country, type, infrastructure type, tier standard, size, location, and end user as referenced above.

The country section of the report also provides individual market-impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like downstream and upstream value chain analysis, technical trends, and Porter’s five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of country brands and the challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Egypt Data Center Market Share Analysis

The Egypt data center market competitive landscape provides details of the competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, country presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, and application dominance. The above data points provided are only related to the companies' focus related to the market.

Some of the major players operating in the Egypt data center market are Oracle, IBM, SAP SE, Nippon Telegraph and Telephone Corporation, Hewlett Packard Enterprise Development LP, Microsoft, Amazon Web Services, Inc., Cisco Systems, Inc, Huawei Technologies Co., Ltd., Dell Inc.; ABB, Lenovo, Telecom Egypt, Link Datacenter, and Raya Data Center among others.

SKU-69020