Market Trends of Nigeria Data Center Networking Industry
IT and Telecom to Hold Significant Growth
- Nigeria has one of the largest telecom markets in Africa, supported by the second-largest economy on the continent after South Africa. In February 2023, the Nigerian Communications Commission, the Nigerian telecom regulator, reported that the number of active mobile telecommunication plan subscriptions in the country reached about 222,571 million in December 2022, which shows the demand for mobile services in Nigeria. Overall, increasing network traffic is leading to major data center investment, leading to DC networking adoption.
- 5G networks can be sliced into uniquely purposed slices, and each virtual network slice could demand unique security capabilities based on various usage scenarios. The shipment of 5G-enabled devices increased by 26.9% to Nigeria and other Sub-Saharan African countries in the second quarter of 2022, according to the GSMA. This is following the recent launch of the 5G network in Nigeria. The Global Association of Telecommunication Firms disclosed that the availability and affordability of 5G devices would be crucial to 5G adoption in the region.
- Many firms offer virtualization services in Nigeria. They do so directly or through partner companies that are closer to client businesses. A player such as Layer3 has partnered with VMWare, one of the major leading providers of virtualization services, to deliver the virtual capabilities one business needs. From digital workspaces to virtual cloud networks, the range of solutions will enable us to maximize the resources and reap more from IT investments.
- In terms of investment, with increasing investment in spectrum 5G, the demand for data center networking equipment will increase significantly. In September 2021, the Nigerian government approved 5G in Nigeria. By December 2021, the Nigerian Communications Commission (NCC) had completed auctions for the 3.5GHz spectrum, awarding 5G operational licenses to MTN and MAFAB Communications. The NCC licensed Airtel a 5G spectrum on December 5, 2022.
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Ethernet Switches to Hold Significant Share
- In Nigeria, Ethernet is increasingly becoming an important sector for enterprises with the development of mobile communications and cloud computing. With the government's emphasis on the cloud and its wide application to end users, the demand for Ethernet adapters in the Ethernet market is on the rise.
- Carrier Ethernet extends ethernet from the local area network (LAN) to the wide area network (WAN), enabling companies to connect their ethernet LANs to service provider networks via the same ethernet interface they use to attach every device in the network. Carrier ethernet deployments are also growing in Nigeria. For Nigeria, mobile is an integral part of a Nigerian's life for both social networking as well as for education and to access services not readily available within communities.
- AFR-IX telecom has the most reliable and largest Metro Ethernet Pan African Network and offers global coverage services in Africa, including Nigeria. AFR-IX needed a top-notch carrier-neutral data center facility for their services and connectivity solutions, and they partnered with Rack Centre.
- To take benefit of such a market, various large cloud companies are adopting ethernet switches. The increase in hybrid cloud service providers creates demand for colocation services. These facilities help service providers make smarter decisions and analyze data. The indirect impact of the new data center facilities for cloud-based services provided by companies continues to boost the demand.
- Amazon Web Services (AWS) announced an expansion in Nigeria by launching a new edge location in Lagos. Customers in Nigeria can expect up to 20% improvement in latency, on average, for data delivered through the new edge location. The new AWS edge location brings the full suite of benefits provided by Amazon CloudFront, a highly distributed and scalable content delivery network (CDN) that delivers static and dynamic content, APIs, and live and on-demand video with low latency and high performance.
