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Africa Data Center Networking Market Size (2024 - 2029)

The African data center networking market is experiencing significant growth, driven by the increasing adoption of internet and public cloud services across the continent. This expansion is characterized by a rising demand for commercial hosting capacity, which is doubling every three years. Despite the reliance on content delivery network nodes outside Africa, there is a notable shift towards utilizing cloud destinations within the continent, reducing latency issues. The market's infrastructure is set to expand substantially, with a significant increase in IT load capacity, raised floor area, and the number of racks installed. Additionally, the development of submarine cable systems, such as the upcoming Africa-1, is expected to enhance connectivity, further supporting the market's growth trajectory.

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Market Size of Africa Data Center Networking Industry

Africa Data Center Networking Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period 2019 - 2022
CAGR (2024 - 2030) 13.40 %
Market Concentration Medium

Major Players

Africa Data Center Networking Market Major Players

*Disclaimer: Major Players sorted in no particular order

Africa Data Center Networking Market Analysis

The Africa Data Center Networking Market is expected to register a CAGR of 13.40% during the forecast period.

The African data center networking market reached a value of USD 302.7 million in the previous year, and it is further projected to register a CAGR of 13.4% during the forecast period.

  • Africa's commercial hosting capacity has surged and is now doubling every three years. Internet and public cloud adoption has been growing all over the world, and major cloud providers have a growing presence in Africa. Clients in Africa mostly use content delivery network (CDN) nodes located outside the continent, resulting in higher latencies. It has also been observed some clients are making use of longer routes to cloud destinations within Africa.
  • The upcoming IT load capacity of the Africa data center construction market is expected to reach 1226 MW by 2029. The region's construction of raised floor area is expected to increase 5.2 million sq. ft by 2029. The region's total number of racks to be installed is expected to reach 260K units by 2029. South Africa is expected to house the maximum number of racks by 2029.
  • There are close to 70 submarine cable systems connecting Africa, and many are under construction. One such submarine cable that is estimated to start service in 2024 is Africa-1, which stretches over 10,000 Kilometers with a landing point in Port Said and Ras Ghareb, Egypt.

Africa Data Center Networking Industry Segmentation

Data center networking refers to the set of technologies, protocols, and hardware used to connect physical and network-based devices and manage the network infrastructure, storage, and processing of applications and data. Data center networking is very critical for 100% uptime of data centers. In the current web-connected world, business workloads are executed on single computers, hence leading to the need for data center networking. Networks provide servers, clients, applications, and middleware with a standard plan to stage the execution of workloads and also to manage access to the data produced.

The African data center networking market is segmented by component type (product (ethernet switches, router, storage area network (SAN), application delivery controller (ADC), and other networking equipment) and services (installation & integration, training & consulting, and support & maintenance)) and end-user (IT & telecommunication, BFSI, government, media & entertainment, and other end-users)

The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Component
By Product
Ethernet Switches
Router
Storage Area Network (SAN)
Application Delivery Controller (ADC)
Other Networking Equipment
By Services
Installation & Integration
Training & Consulting
Support & Maintenance
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-Users
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Africa Data Center Networking Market Size Summary

The Africa Data Center Networking market is experiencing significant growth, driven by the increasing demand for cloud services and the rapid adoption of advanced telecommunications technologies such as 4G and 5G. The region's commercial hosting capacity is expanding rapidly, with major cloud providers enhancing their presence to meet the growing needs. South Africa stands out as the most developed cloud market in sub-Saharan Africa, attracting substantial investments from global data center operators and local facilities. The deployment of 5G networks is expected to further accelerate the expansion of data center networking, necessitating extensive fiber infrastructure and advanced technologies to support ubiquitous broadband connectivity. The market is characterized by a high degree of fragmentation, with key players like Huawei Technologies, Cisco Systems, and F5 Networks actively expanding their customer base through strategic collaborations and innovative solutions.

The market's growth is also fueled by the increasing adoption of software-defined networking (SDN) and virtualization technologies, which offer enhanced network management and configuration capabilities. Companies like Cisco are providing solutions that streamline network operations, while virtualization vendors like Veeam are seeing significant revenue growth in the region. The presence of nearly 70 submarine cable systems connecting Africa, along with the construction of new cables, is enhancing connectivity and reducing latency issues. Telecom providers play a crucial role in driving content delivery and mobile services, with high connectivity requirements for telecom data centers. The introduction of advanced networking equipment, such as Moxa's Ethernet switches and TP Link's high-performance routers, underscores the market's focus on improving infrastructure to support the burgeoning demand for data center networking solutions.

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Africa Data Center Networking Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Need of Cloud Storage

      2. 1.2.2 Increasing Cyberattacks Among Enterprises

    3. 1.3 Market Restraints

      1. 1.3.1 Increasing Network Complexity

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Component

      1. 2.1.1 By Product

        1. 2.1.1.1 Ethernet Switches

        2. 2.1.1.2 Router

        3. 2.1.1.3 Storage Area Network (SAN)

        4. 2.1.1.4 Application Delivery Controller (ADC)

        5. 2.1.1.5 Other Networking Equipment

      2. 2.1.2 By Services

        1. 2.1.2.1 Installation & Integration

        2. 2.1.2.2 Training & Consulting

        3. 2.1.2.3 Support & Maintenance

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-Users

Africa Data Center Networking Market Size FAQs

The Africa Data Center Networking Market is projected to register a CAGR of 13.40% during the forecast period (2024-2030)

Huawei Technologies Co. Ltd., Cisco Systems Inc., F5 Networks Inc., H3C Holding Limited and NEC Corporation are the major companies operating in the Africa Data Center Networking Market.

Africa Data Center Networking Market Report Snapshots

Africa Data Center Networking Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)