Market Trends of south africa data center Industry
The growing average data volume per subscription and the rising subscription numbers for smartphones to boost market growth
- The total data traffic per smartphone in the country was 3.6 GB in 2022, and it is expected to witness a CAGR of 24.8% during the forecast period to reach a value of 17.2 GB by 2029.
- In South Africa, 35% of consumer internet traffic was mobile in 2017, and 56% of consumer internet traffic is expected to be mobile by 2022 due to the consumption of data by multiple end users. For instance, in 2022, online retail in South Africa reached 35%, bringing the total amount of online retail in South Africa to SAR 55 billion. This followed a 40% increase in 2021, which brought the amount to SAR 42.3 billion.
- The growing average data volume per subscription and the rising subscription numbers for smartphones of which are predominantly driven by a rise in video content consumption. For instance, video content exceeds half of South Africa's consumer internet traffic by the end of 2016. By 2022, it reached 50 billion minutes of video content across the Internet each month, which is 19,182 minutes of video streamed or downloaded every second, as most of the video content is streaming through smartphones only.
- Since the needs of the end-users are changing and the need for more data storage is resulting in the need for more servers in the data centers. Thus, contributing to the growth of the data center market in South Africa. Because end users' expectations are evolving and there is a growing demand for greater data storage, data centers require additional servers, hence, contributing to the expansion of South Africa’s data center market.
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Increasing mobile data subscriptions, adoption of internet and rising use of smartphone to boost market growth
- The total number of smartphone users in the country was 25.5 million in 2022 and is expected to witness a CAGR of 4.7% during the forecast period to reach a value of 35.2 million by 2029.
- Digital usage is expanding rapidly in South Africa. Consumer behavior has been impacted by the quick adoption of the internet and smartphone technology in various businesses. For instance, Smartphone penetration in South Africa went from 81.7% in 2018 to 91.2% in 2019.
- Mobile data subscriptions increased by 18.8%, from 65 million in 2018 to 78 million in 2019. Over five years, there was a 13.9% growth. This suggests a rise in number of smartphone users.
- At the start of 2022, there were 108.6 million cellular mobile connections in South Africa, which is equivalent to 179.8% of its population.
- The rising use of smartphones results in a constant increase in data, necessitating a growing amount of storage space to accommodate this uncontrollable flow of data. South Africa's market's preference for smartphones necessitates the expansion of data centers' capabilities in order to handle the increase in data. Smartphones generate a lot of data, which necessitates real-time processing and analysis. The data centers must manage the sheer amount of data. Thus, the requirement for extra racks in South African data centers may increase as the number of smartphone users rises.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Adoption of 5G network and increase 5G connections to boost market growth
- To promote digitization the government launched the South Africa Connect (SA Connect) initiative boosting market growth
- Increase FTTH/B subscriptions and fixed internet speeds in South Africa to boost market growth
