Iraq Data Center Market – Industry Trends and Forecast to 2029

Iraq Data Center Market Analysis and Size

The data center is used for data management, smooth flow, and security purpose by ensuring that all resources are working at the correct time and in the correct location. Forecasting, scheduling, skills management, resource management, processing, computing, and classifying the data are all common aspects of data centers.

Solutions and Enterprise data centers are driving the data center market growth in every possible end-use industry worldwide. Currently, tier 3 data centers are in high demand in a wide range of industries such as IT and telecommunication, government and public sector, Banking, Financial Services, and Insurance (BFSI), and others. High-level competition in the global market demands rapid new product development in order to survive in the market. Continued demand for technological advancements such as technology, automation, the internet of things, and others helps in increasing the data centers demand.

Data Bridge Market Research analyses that the Iraq data center market is expected to reach the value of USD 1,021.73 million by 2029, at a CAGR of 20.3% during the forecast period. "Solutions" accounts for the largest components segment in the data center market that provides basic facilities and a wide range of features with different platforms.     

Market Definition

A data center is a cutting-edge facility that manages IT-related computer systems and equipment. The data centers connect infrastructure standards to the operational environment requirements of various end-user industries. The data center is outsourced from many companies across the globe that provides the facility based on the end user and customer requirement. These types of solutions or the services offered to the customers depend on the working conditions and the components used in the data centers, which use different types of technologies and electronic components based on the size of the data managed and stored. The data center market ensures the management, storage, processing, and computing of the data, including inclusive and the response time taken by the components to replicate the data flow.

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

• The rise in demand for digitalization in business operations

The need for digitalization has been growing across the region over the years, which has benefited the country people, and thus the demand will rise in the future. The adoption of digital transformation in the business will strive for separate infrastructures and tools for which some the enterprise choose to build and manage their information and work process related to digitalization, and others choose to outsource the facility. This replicates the adoption and the usage of the data centers across the region and showcases the expectation of the need for the data centers in the region.

• Technological advancements in the IT sector

The technological advancement has successfully created innovative solutions and products, which has impacted the demand for easy and smooth connectivity and hence requires the perfect amount of infrastructure named data centers. Moreover, the initiative is increasing to build data centers in Middle East countries following the development of technology in the IT sector, as mentioned in the above instance. Thus, technological advancement is expected to drive the data center market.

• The increasing popularity of cloud-powered solutions

The government of many Middle East countries is supporting a lot of initiatives for people to start a tech business which is driving small and medium businesses to transform digitally. The huge demand for cloud-powered solutions, and many industries and businesses are adopting cloud-based services and solutions not only in the Middle East and GCC countries but across the world. Hence the need for cloud-powered solutions is expected to drive the data center market.

• Rising demand for remote working and learning facilities

The pandemic has disturbed schooling in more than 150 nations and impacted 1.6 billion understudies. Accordingly, numerous nations carried out some type of remote learning. The education response during the beginning stage of COVID-19 focused on executing remote learning modalities as a crisis reaction. However were not effective all the time but as the pandemic has developed, so too have education responses.

Restraints

• Unreliable infrastructure in developing countries

Particularly in emerging nations, foundation frameworks keep on offering problematic types of assistance and be defenseless against outer shocks, including normal dangers. Furthermore, flooding frequently upsets the whole metropolitan economy, even past the straightforwardly impacted flood zones. As streets are overflowed, public transport and all traffic approach stop. Individuals can't arrive at their workplaces, supply chains have interfered, conveyances are missed, and deals are lost. The power supply is also frequently impacted, resulting in blackouts and ending financial action. Thus, unreliable infrastructure in developing countries is expected to restrain the data center market growth.

• Complexities involved in THE integration of different data center tools

The integration of the data centers and the big data involves a wide range of requirements and is associated with complex working strategies which cannot be eliminated but can be simplified through various tools and solutions, which require additional setup costs and maintenance frequently and thus integration of different data center tools involves complexities. It is expected to restrain the data center market.

Post COVID-19 Impact on Data Center Market

COVID-19 created a major impact on the data center market as almost every country opted for the shutdown of every production facility except the ones dealing in producing the essential goods. The government has taken some strict actions such as the shutdown of production and sale of non-essential goods, blocked international trade, and many more to prevent the spread of COVID-19. The only business which was dealing with this pandemic situation were the essential services that were allowed to open and run the processes.

COVID-19 has impacted the data center market. The limited investment costs and lack of employees hampered the sales and production of the data center. However, government and market key players adopted new safety measures for developing the practices. The advancements in technology escalated the growth rate of the data center market as it targeted the right audience. The data center construction market is expected to regain its pace during the post-pandemic scenario due to the easing of the restrictions.

Recent Developments

• In June 2022, Schneider Electric announced the new research about innovating IT infrastructures for net zero operations for the IT and the data center industry. This development will help the company to expose the action gap in the data centers and innovate new solutions to fill the gap and improve the efficiency of the data centers
• In December 2021, Equinix, Inc. announced a multi-year partnership with Nasdaq, Inc. to scale the data center usage for the company. This partnership will help the company to strengthen its market position and attract new customers by gaining trust because of partnership with an esteemed company

Iraq Data Center Market Scope

The data center market is segmented on the basis of offerings, type, tier type, size, technology, and end-user. The growth amongst these segments will help you analyse 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.

Offering

• Solutions
• Services

On the basis of offering, the Iraq data center market is segmented into solutions and services.

Type

• Enterprise Data Centers
• Colocation Data Centers
• Cloud Data Centers
• Hyperscale Data Centers

On the basis of type, the Iraq data center market is segmented into collocation data centers, enterprise data centers, cloud data centers, and hyperscale data centers.

Tier type

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

On the basis of tier type, the Iraq data center market is segmented into tier I, tier II, tier III, and tier IV.

Size

• Large Data Centers
• Small and Medium Data Centers

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

Technology

• Automation
• Artificial Intelligence
• Machine Learning
• Edge Computing
• Server Virtualization
• Others

On the basis of technology, the Iraq data center market is segmented into edge computing, server virtualization, automation, artificial intelligence, machine learning, and others.

End User

• IT and Telecommunication
• Government and Public Sector
• Banking, Financial Services, and Insurance (BFSI)
• Aerospace and Defense
• Media and Entertainment
• Manufacturing
• Retail & E-Commerce
• Healthcare and Life Sciences
• Others

On the basis of end-user, the Iraq data center market is segmented into IT and telecommunication, government and public sector, banking, financial services and insurance (BFSI), aerospace and defense, media and entertainment, manufacturing, retail & e-commerce, healthcare, and life sciences, and other.

Data Center Market Regional Analysis/Insights

The data center market is analysed, and market size insights and trends are provided by country, offering, type, tier type, size, technology, and end-user, as referenced above.

The country covered in the data center market report is Iraq.

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 down-stream 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 Middle East brands and their 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 Data Center Market Share Analysis

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

Some of the major players operating in the data center market are AL-NABAA, Equinix, Inc., FUTURE DIGITAL DATA SYSTEMS, Khazna, GIGA-BYTE Technology Co., Ltd., eHosting DataFort, Qualcomm Technologies, Inc., Advanced Micro Devices, Inc., Arista Networks, Inc., Quantum Switch, MEEZA, Delta Electronics, Inc., ABB, Siemens, Eaton, Schneider Electric, HCL Technologies Limited, Cisco Systems, Inc., Hewlett Packard Enterprise Development LP, Raya Data Center and Huawei Technologies Co., Ltd. among others.

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