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Nigeria Data Center Networking Market Size (2024 - 2029)

The Nigeria data center networking market is poised for significant growth, driven by the expansion of data center facilities and the country's robust network interconnectivity. As one of Africa's leading nations in local traffic exchange, Nigeria's major cities face challenges with latency compared to other regions. The market's expansion is further supported by the anticipated increase in IT load capacity, raised floor area, and the number of racks installed. Additionally, the development of submarine cable systems enhances connectivity, contributing to the market's growth trajectory.

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Market Size of Nigeria Data Center Networking Industry

Nigeria Data Center Networking Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Market Size (2024) USD 88.19 Million
Market Size (2029) USD 231.03 Million
CAGR (2024 - 2030) 21.24 %
Market Concentration High

Major Players

Nigeria Data Center Networking Market Major Players

*Disclaimer: Major Players sorted in no particular order

Nigeria Data Center Networking Market Analysis

The Nigeria Data Center Networking Market size is estimated at USD 88.19 million in 2024, and is expected to reach USD 231.03 million by 2029, growing at a CAGR of 21.24% during the forecast period (2024-2029).

Nigeria is among the three countries in Africa with the most interconnected networks that have succeeded in exchanging 70-80 percent of their traffic locally. Nigeria's main cities, including Port-Harcourt, Lagos, Benin City, Kano, and Ibadan, experience higher latency compared to their counterparts in other African countries. With increasing data center facilities, the market is expected to grow.

  • The upcoming IT load capacity of the Nigeria data center rack market is expected to reach 220 MW by 2029. The country's construction of raised floor area is expected to increase to 0.6 million sq. ft by 2029.
  • The country's total number of racks to be installed is expected to reach 32,000 units by 2029. Johannesburg is expected to house the maximum number of racks by 2029. There are close to eight submarine cable systems connecting Nigeria, and many are under construction

Nigeria 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 Nigeria 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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Nigeria Data Center Networking Market Size Summary

The Nigeria data center networking market is experiencing significant growth, driven by the country's robust telecom infrastructure and increasing demand for data services. As one of Africa's most interconnected nations, Nigeria has successfully localized a substantial portion of its network traffic, although latency issues persist in major cities like Lagos and Port-Harcourt. The market is poised for expansion with the construction of new data center facilities and the anticipated increase in IT load capacity and raised floor area. The proliferation of submarine cable systems further enhances connectivity, supporting the growing need for data center networking solutions. The adoption of 5G technology and the rise of virtualization services are also contributing to the market's development, as companies seek to leverage advanced networking capabilities to optimize their IT investments.

The demand for data center networking equipment is expected to surge, fueled by investments in 5G spectrum and the expansion of cloud services. The Nigerian government's approval of 5G and subsequent spectrum auctions have paved the way for enhanced mobile and data services, driving the need for advanced networking infrastructure. Ethernet technology is gaining traction, with carrier Ethernet deployments enabling seamless connectivity between local and wide area networks. The presence of major cloud providers, such as Amazon Web Services, further underscores the market's potential, as they expand their services to improve latency and performance. The competitive landscape is marked by the presence of key players like Oracle, Huawei, and A10 Networks, who are actively expanding their market share through strategic collaborations and innovative product offerings.

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Nigeria 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 Rising Demand for Reliable Application Performance

      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

Nigeria Data Center Networking Market Size FAQs

The Nigeria Data Center Networking Market size is expected to reach USD 88.19 million in 2024 and grow at a CAGR of 21.24% to reach USD 231.03 million by 2029.

In 2024, the Nigeria Data Center Networking Market size is expected to reach USD 88.19 million.

Nigeria Data Center Networking Market Report Snapshots

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