Market Trends of nigeria data center Industry
increase in the use of smartphones, increasing use of online shopping platforms, and increase mobile internet data usage to boost market growth
- As companies were forced to switch to virtual platforms and related options for continuing work during the COVID-19 pandemic, it contributed to the increase in data usage among smartphone users.
- This could also be attributed to an increase in the use of smartphones as a preferred device to access the Internet. The data suggests that about 84.4% of Nigerians access the internet through smartphones and tablets, compared to 15.7% using desktops. Also, in 2020, Nigeria recorded online transactions worth about USD 12 billion through different media and platforms.
- Similar trends were observed in the buying trends of the customers, preferring online shopping platforms, which is another crucial factor contributing to the overall data traffic in the country. For instance, as of 2022, one of the major e-commerce service providers, jumia.com.ng, reported about 7.9 million visitors from Nigeria, comprising about 31% of the total visitors, despite its presence across 13 African countries. As a result, Nigerians prefer online platforms, indicating trends in data generation.
- In the third quarter of 2022, Nigeria recorded more than 5 million subscribers, adding to data consumption. The rate of subscriber addition with network upgrades and constant grid expansion adds to the overall mobile internet data usage. Network evolution, coupled with changing internet usage habits in Nigeria, would result in increased data traffic across smartphones.
Understand The Key Trends Shaping This Market
Download PDF
Increasing mobile phone penetration and increasing mobile phone subscriptions to boost market growth
- While the mobile phone penetration rate is increasing in Nigeria, smartphone users account for about 10-20% of the total users. The country requires better smartphone penetration or more platforms to reach the masses, contributing to the demand for data generation and analysis.
- According to a report, smartphone penetration is expected to increase from 44% in 2021 to about 64% by 2025, which is higher than the Sub-Saharan African average penetration rate of 61% in 2025. Being one of the most populous countries in Africa, the population and rate of development would surely help increase the penetration rate.
- The data also suggests that new mobile subscriptions play a vital role in setting these trends. Nigeria projects promising numbers of new mobile phone subscribers, contributing to the overall smartphone penetration. The data suggested an increase of about 18 million mobile subscribers in the total subscribers in 2021 (515 million), which is one of the largest additions compared to other African countries.
Understand The Key Trends Shaping This Market
Download PDF
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Upgradation of existing 2G sites to leverage 2G networks' vast coverage and introducing 4G and 5G networks to boost market growth
- Deployment of 5G and expansion programs to support rising demands through smart city initiatives including fiber connectivity to drive market growth
- Deployment of FTTH and maintenance of network infrastructure to drive market growth
