Market Size of Israel Data Center Server Industry
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.77 Billion |
| Market Size (2030) | USD 1.64 Billion |
| CAGR (2024 - 2030) | 13.40 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Israel Data Center Server Market Analysis
The Israel Data Center Server Market size is estimated at USD 0.77 billion in 2024, and is expected to reach USD 1.64 billion by 2030, growing at a CAGR of 13.40% during the forecast period (2024-2030).
The Israel data center server market reached a value of USD 604.1 million in previous years, and it is further projected to register a CAGR of 13.4% during the forecast period. The increasing demand for cloud computing among small and medium-sized enterprises (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.
Under Construction IT Load Capacity: The upcoming IT load capacity of the Israel data center rack market is expected to reach 277 MW by 2029.
Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 0.9 million sq. ft by 2029.
Planned Racks: The country's total number of racks to be installed is expected to reach above 49,700 units by 2029. Tel Aviv is expected to house the maximum number of racks by 2029.
Planned Submarine Cables: There are close to 4 submarine cable systems connecting Israel, and many are under construction. In July 2023, Israel announced the construction of a submarine power cable project to meet the country's growing energy needs in the central and northern parts of the country and connect the country's power grid to that of Europe and the Gulf States.
Israel Data Center Server Industry Segmentation
A data center server is basically a high-capacity computer without peripherals like monitors and keyboards. It is a hardware unit installed inside a rack, having a central processing unit (CPU), storage, and other electrical and networking equipment, making them powerful computers that deliver applications, services, and data to end-user devices.
The Israel data center server market is segmented by form factor (blade server, rack server, tower server) and by end-user (IT and telecommunication, BFSI, government, media and entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Form Factor | |
| Blade Server | |
| Rack Server | |
| Tower Server |
| End-User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Media & Entertainment | |
| Other End-User |
Israel Data Center Server Market Size Summary
The Israel data center server market is experiencing significant growth, driven by the increasing demand for cloud computing, particularly among small and medium-sized enterprises, and the need for enhanced data security regulations. The market is also benefiting from substantial investments by domestic players and the expansion of telecommunications infrastructure, including the development of submarine cable systems. The adoption of advanced technologies such as artificial intelligence, cloud computing, and IT services is propelling the use of servers in data centers, with a notable focus on blade servers due to their efficient space utilization despite higher costs and cooling requirements. The rise in e-commerce and digital transactions is further fueling the demand for data center services, as more consumers engage in online shopping through various devices, leading to increased data traffic.
The competitive landscape of the Israel data center server market is characterized by the presence of major players like Dell Inc., Intel Corporation, Hewlett Packard Enterprise, Supermicro Computer Inc., and Cisco Systems Inc. These companies are actively enhancing their offerings to meet the evolving needs of data centers, with innovations such as energy-efficient servers and advanced infrastructure solutions. The market's growth is also supported by government initiatives to promote digital technologies, including 5G, AI, and IoT, which are expected to drive the demand for scalable IT infrastructure. Collaborations between government agencies and private IT and telecommunications providers are further strengthening the sector, as seen in plans to phase out older network technologies and the strategic acquisitions by tech giants to expand their capabilities in the region.
Israel Data Center Server Market Size - Table of Contents
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1. Market Dynamics
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Significant investment in IT infrastructure
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1.2.2 Rapid Expansion in 5G network
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1.3 Market Restraints
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1.3.1 Increasing number of Data Security Breaches
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1.4 Value Chain / Supply Chain Analysis
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1.5 Industry Attractiveness - Porter's Five Forces Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 Assessment of COVID-19 Impact
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2. MARKET SEGMENTATION
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2.1 Form Factor
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2.1.1 Blade Server
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2.1.2 Rack Server
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2.1.3 Tower Server
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2.2 End-User
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2.2.1 IT & Telecommunication
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2.2.2 BFSI
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2.2.3 Government
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2.2.4 Media & Entertainment
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2.2.5 Other End-User
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Israel Data Center Server Market Size FAQs
How big is the Israel Data Center Server Market?
The Israel Data Center Server Market size is expected to reach USD 0.77 billion in 2024 and grow at a CAGR of 13.40% to reach USD 1.64 billion by 2030.
What is the current Israel Data Center Server Market size?
In 2024, the Israel Data Center Server Market size is expected to reach USD 0.77 billion.
