South Africa Data Center Rack Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2030 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 15.50 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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South Africa Data Center Rack Market Analysis
The South African data center rack market reached a volume of over 92,000 in the previous year, and it is further projected to register a CAGR of 15.5% during the forecast period. The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country/region.
- Under Construction IT Load Capacity: The upcoming IT load capacity of the South African data center market is expected to reach over 800 MW by 2029.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 4.4 million sq. ft by 2029.
- Planned Racks: The country's total number of racks to be installed is expected to reach 220201 units by 2029. Johannesburg is expected to house the maximum number of racks by 2029.
- Planned Submarine Cables: There are close to 9 submarine cable systems connecting South Korea, and many are under construction. One such submarine cable that is estimated to start service in 2023 is 2Africa, which stretches over 45,000 Kilometers with landing points from Cape Town, Mtunzini, and Port Elizabeth in South Africa.
South Africa Data Center Rack Market Trends
IT & Telecommunication Holds the Major Share
- The need for telecommunications services in South Africa has increased significantly during the last five years. Recently, the country's emphasis has been on fiber and LTE networks and backup capacity to increase and improve internet service connectivity. Telkom, one of the prominent telecom operator, anticipates shutting down its copper network in 2024 due to the ongoing transition to fiber.
- The country has recently made significant efforts to improve 5G legislation and regulations. One recent instance is the launch of a three-stage 5G spectrum auction by the Independent Communications Authority of South Africa (ICASA). South Africa's efforts to expedite spectrum auctions and new spectrum allocations would maximize the economic benefits of cellular technology in the country.
- The rapidly increasing 4G penetration and the upcoming 5G wave are motivating telecom vendors to invest in the South African data center market. In October 2022, the South African telecom provider Telkom established the 5G high-speed internet network with the help of Huawei Technologies from China. Huawei continues to assist South Africa in developing its 5G networks. The prominent 5G network on the African continent has more than 2,800 base stations deployed.
- In September 2022, the US Department of Commerce's Market Development Cooperator Program (MDCP), run by the International Trade Administration, awarded the Wireless Infrastructure Association (WIA) a grant for its proposed Roadmap to 5G Success initiative. This project aims to accelerate the deployment of 5G in South Africa and boost business for US-based enterprises. South Africa has 109 million active mobile connections. Between 2021 and 2022, the share of individuals owning a mobile phone increased by 5%. Digital payments in South Africa are anticipated to grow from USD 14 billion to USD 25 billion during 2022-2027.
- Such developments, the growing population, and the ongoing demand for smartphones are, in turn, expected to boost the demand for data centers from the telecom segment leading to major demand for the racks during the forecast period.
Full Rack is Expected to Grow Significantly
- In South Africa, the demand for full rack is expected to increase due to preference for hyper-scale and wholesale data centers in the country. The need for the storing of the data has created a need for increasing installation of full racks in data centers.
- The adoption of cloud services has accelerated across industries, including some highly regulated sectors like government, healthcare, and finance, owing to cloud providers' constant investment in cloud data center capacity in South Africa. For instance, in June 2022, Africa Data Centers planned to establish a cloud interconnect data center in Cape Town. The new facility provides eight data halls, with 15,000 sq. m of space and 20 MW of additional power.
- The amount of time spent by South Africans on social media has been rising yearly since 2017. There were 28 million active social media users in South Africa as of January 2022, a three-fold rise from 9.8 million users in 2014. As of the third quarter of 2021, WhatsApp was the nation's most widely used social media application.
- The scope of e-commerce is increasing with the growing internet adoption and the expanding retail spaces and distribution centers around the hotspots. For instance, in October 2021, the Takealot Group, a South African online retailer, started constructing a new distribution center (DC) near Cape Town, which was planned to become operational in August 2022. The building spans 24,000 sq. ft and comprises 2,000 sq. ft of offices and 22,000 sq. ft of warehouse space. Also, in December 2021, TFG Ltd acquired Quench, a last-mile delivery service and on-demand online shopping platform, to expand its e-commerce business.
- Overall, with increasing digitalization in above end user sector is adhering a demand for more data center construction, leading to major demand for the full rack.
South Africa Data Center Rack Industry Overview
South Africa Data Center Rack market is consolidated among and has gained a competitive edge in recent years. Few major players, such as CPS Technologies, Schneider Electric Chile S A, Falcon Electronics (Pty) Ltd are currently leading the market. These major players with a prominent market share focus on expanding their customer base across the region. These companies leverage strategic collaborative initiatives and innovations to increase their market share and profitability.
- October 2022 - Eaton announced the launch of its Open Compute Project (OCP) Open Rack v3 (ORV3) compatible solutions. It is purpose-built and preconfigured with a focus on the efficient, and scalable delivery of critical power for their data centers seeking to deploy ORV3 racks. The rack will be distributed worldwide including South Africa.
South Africa Data Center Rack Market Leaders
CPS Technologies
Schneider Electric SE
Falcon Electronics (Pty) Ltd
Modac Data Centre Design
Eaton Corporation Plc
*Disclaimer: Major Players sorted in no particular order
South Africa Data Center Rack Market News
- August 2023 - Oracle announced its offering of single-rack Oracle Cloud system where customers can deploy on-premise in their own data centers. The system comes in a 42U rack configuration, weighing between 1,230lbs (559kg) and 1,752lbs (796kg) depending on the configuration.
- May 2022 - Legrand launched new Nexpand data center cabinet series. The new cabinet is built from environmentally friendly material, and provides airflow management. The doors have electronic tamper-proof locks and also have secure cable managment.
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 Penetration of Cloud Enterprises in the Country
4.2.2 Growing Adoption of 5G and FTTH/B subscriptions
4.3 Market Restraints
4.3.1 High CaPex for Building Data Center Along With Security Challenges
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 Rack Size
5.1.1 Quarter Rack
5.1.2 Half Rack
5.1.3 Full Rack
5.2 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
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 CPS Technologies
6.1.2 Schneider Electric SE
6.1.3 Falcon Electronics (Pty) Ltd.
6.1.4 Modac Data Centre Design
6.1.5 Eaton Corporation Plc
6.1.6 Legrand SA
6.1.7 Rittal GmbH & Co. KG
6.1.8 Oracle Corporation
6.1.9 Vertiv Group Corporation
6.1.10 Delta Power Solutions
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
South Africa 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 South Africa Data Center Rack Market is Segmented by Rack Size (Quarter Rack, Half Rack, Full Rack) and by End User (IT & Telecommunication, BFSI, Government, and Media and entertainment). The market sizes and forecasts are provided in terms of volume (units) for all the above segments.
| Rack Size | |
| Quarter Rack | |
| Half Rack | |
| Full Rack |
| End-User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Media & Entertainment | |
| Other End-Users |
Frequently Asked Questions
What is the current South Africa Data Center Rack Market size?
The South Africa Data Center Rack Market is projected to register a CAGR of 15.5% during the forecast period (2024-2030)
Who are the key players in South Africa Data Center Rack Market?
CPS Technologies , Schneider Electric SE, Falcon Electronics (Pty) Ltd, Modac Data Centre Design and Eaton Corporation Plc are the major companies operating in the South Africa Data Center Rack Market.
What years does this South Africa Data Center Rack Market cover?
The report covers the South Africa Data Center Rack Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South Africa Data Center Rack Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
South Africa Data Center Rack Industry Report
Statistics for the 2024 South Africa Data Center Rack market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Africa Data Center Rack analysis includes a market forecast outlook to for 2024 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
