Middle East Data Center Rack Market Size
| Study Period | 2024 - 2030 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2030 |
| CAGR | 16.90 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Middle East Data Center Rack Market Analysis
The Middle East data center rack market reached value of around USD 2.1 million in previous year and it is further projected to grow and register a CAGR of 14.74%.
- The upcoming IT load capacity of the Middle East data center market is expected to reach 2,059.5 MW by 2029.
- The region's construction of raised floor area is expected to increase 9.7 million sq. ft by 2029.
- The region's total number of racks to be installed is expected to touch around 500,000 units by 2029. Saudi Arabia is expected to house the maximum number of racks by 2029.
- There are close to 13 submarine cable systems connecting the Middle East, and many are under construction. One such submarine cable that is estimated to start service in 2024 is Blue, which stretches over 4696 Kilometers with a landing point in Tel Aviv.
Middle East Data Center Rack Market Trends
End-User Outlook
- The most significant market shares among end-user industries are projected to come from the cloud, telecom, e-commerce, and BFSI end users. As a result, the banking, financial services, and insurance (BFSI) sector, one of the key pillars of the region's economy, increased projects focusing on Industry 4.0.
- The region is witnessing several digital transformations, advancing the cloud industry. These initiatives, as well as similar others, are being carried out by the United Arab Emirates, Saudi Arabia, Israel, and the Rest of the Middle East.
- In Qatar, 60 new factories started operating in 2021, and the industrial sector generated over USD 15 billion in GDP during that year. The Qatar National Manufacturing Strategy focuses on developing advanced manufacturing value chains that utilize cutting-edge technologies to increase manufacturing and production, including robotics, artificial intelligence, augmented reality, 3D printing, and the Internet of Things.
- The telecom sector is expected to continue to rule due to the rising adoption of 5G networks. The expected 5G mobile data speed increase by 2029 is enormous, reaching 921 Mbps, thus boosting the demand for data center servers. The nation's deployment of 4G also creates a need for data centers.
- Moreover, the number of Internet subscribers in UAE increased drastically, reaching 3,740 thousand subscribers in June 2022. The growing demand is expected to increase the demand for servers in the market.
- The demand will likely increase during the forecast period due to the quick installation and growth of IT infrastructure. Israel was one of the eight Middle East and North Africa (MENA) nations to introduce commercial 5G by the end of March 2022. The country's telecom sector would expand due to the industry-wide demand for low latency rates. The need for data centers to provide a platform would increase as 5G gets popularity among the general public, easing the system requirements for the same.
Saudi Arabia is the largest Country
- In the coming years, the Middle East region is expected to increase its investment in the data center market. Several factors are facilitating the expansion of data centers in the area. The region's governments' smart city ambitions are driving a shift in how modern communities are built. Cities of the future, supported by digital technologies, are expected to generate massive amounts of data. It is critical to optimize data capture, storage, and processing.
- Domestic data growth and the emergence of 5G networks drive demand for localized data centers to speed up data transfer. Uncertain data sovereignty regulations in certain jurisdictions, including the Gulf Cooperation Council (GCC), drive data center investments. This emphasizes the importance of organizations such as banks retaining customer data within the country.
- The United Arab Emirates has been a prime location for data centers in the region as one of the frontrunners in the race to establish a robust and competitive digital economy. According to Arcadis' Data Centre Location Index, the UAE's "well-established fiber broadband network" helped the country secure the top spot for mobile broadband penetration. At the same time, the ease of obtaining construction permits and new smart city initiatives make it an emerging location for data center investment.
- Saudi Arabia launched a USD 18 billion strategy in July 2021 to establish a nationwide network of large-scale data centers. According to the Saudi Ministry of Communications and Information Technology, the first batch of investment partners includes local firms Gulf Data Hub, Al-Moammar Information Systems, and Saudi FAS Holding.
Middle East Data Center Rack Industry Overview
The Middle East Data Center Rack Market is fairly consolidated with significant players such as Rittal GMBH & Co.KG, Schneider Electric SE, Legrand SA, Dell Inc., and Hewlett Packard Enterprise.
Middle East Data Center Rack Market Leaders
Rittal GMBH & Co.KG
Schneider Electric SE
Legrand SA
Dell Inc.
Hewlett Packard Enterprise
*Disclaimer: Major Players sorted in no particular order
Middle East Data Center Rack Market News
- October 2022: In contrast to the smaller installations provided by the iRack solution, NetRack created iRack Block to cater to large requirements primarily. The rack was a step toward intelligent infra capsules or modular data centers because it includes self-cooking, self-powered, and self-contained capabilities.
- June 2022: To deliver streamlined, zero-touch edge computing, data centers enabled the next wave of industrial innovation. Schneider Electric, the leader in the digital transformation of energy management and automation, announced its partnership with Stratus Technologies, a global leader in simplified, protected, and autonomous edge computing platforms, and Avnet Integrated.
Table of Contents
1. INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Deployment of Data Center Facilities
4.2.2 Growing Cloud Computing Adoption Leading to Investment in Hyperscale Data Centers
4.2.3 BFSI Sector Expected to Hold a Significant Share
4.3 Market Restraints
4.3.1 Increasing Utilization of Blade Servers
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Bargaining Power of Buyers/Consumers
4.5.2 Bargaining Power of Suppliers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of COVID-19 Impact
5. MARKET SEGMENTATION
5.1 By Rack Size
5.1.1 Quarter Rack
5.1.2 Half Rack
5.1.3 Full Rack
5.2 By End User
5.2.1 IT & Telecommunication
5.2.2 BFSI
5.2.3 Government
5.2.4 Media & Entertainment
5.2.5 Other End Users
5.3 By Country
5.3.1 Israel
5.3.2 Saudi Arabia
5.3.3 United Arab Emirates
5.3.4 Rest of Middle East
6. COMPETITIVE LANDSCAPE
7. Company Profiles
7.1 Eaton Corporation
7.2 Black Box Corporation
7.3 Rittal GMBH & Co.KG
7.4 Schneider Electric SE
7.5 Vertic Group Corp.
7.6 Dell Inc.
7.7 nVent Electric PLC
7.8 Hewlett Packard Enterprise
7.9 Legrand SA
7.10 Fujitsu Corporation
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Middle East Data Center Rack Industry Segmentation
A data center rack is a physical enclosure made up of usually steel housing electronic framework. It is designed to house servers, networking and communication devices, cables, and other data center computing peripherals.
The Middle Eastern data center rack market is segmented by Rack Size (Quarter Rack, Half Rack, and Full Rack), End-user Industry (BFSI, IT, Telecom, Government, Media, and Entertainment), and Country (Israel, Saudi Arabia, United Arab Emirates and Rest of Middle East). The market sizes and forecasts are provided in terms of volume (units) for all the above segments.
| By Rack Size | |
| Quarter Rack | |
| Half Rack | |
| Full Rack |
| By End User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Media & Entertainment | |
| Other End Users |
| By Country | |
| Israel | |
| Saudi Arabia | |
| United Arab Emirates | |
| Rest of Middle East |
Frequently Asked Questions
What is the current Middle East Data Center Rack Market size?
The Middle East Data Center Rack Market is projected to register a CAGR of 16.90% during the forecast period (2024-2030)
Who are the key players in Middle East Data Center Rack Market?
Rittal GMBH & Co.KG, Schneider Electric SE, Legrand SA, Dell Inc. and Hewlett Packard Enterprise are the major companies operating in the Middle East Data Center Rack Market.
What years does this Middle East Data Center Rack Market cover?
The report covers the Middle East Data Center Rack Market historical market size for years: . The report also forecasts the Middle East Data Center Rack Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Middle East Data Center Rack Industry Report
Statistics for the 2024 Middle East Data Center Rack market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Middle East Data Center Rack analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
