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South Africa Data Center Networking Market Size (2024 - 2029)

The South African data center networking market is experiencing significant growth, driven by increased investment in data centers due to the rising demand for cloud computing and insight-driven business models. This investment trend is expected to continue, contributing to a substantial expansion in the market's capacity and infrastructure. The market's expansion is further supported by the development of new submarine cable systems, enhancing connectivity and data processing capabilities.

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Market Size of South Africa Data Center Networking Industry

South Africa Data Center Networking Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period 2019 - 2022
CAGR (2024 - 2030) 13.60 %
Market Concentration Medium

Major Players

South Africa Data Center Networking Market Major Players

*Disclaimer: Major Players sorted in no particular order

South Africa Data Center Networking Market Analysis

The South Africa Data Center Networking Market is expected to register a CAGR of 13.60% during the forecast period.

The South African data center networking market reached a value of USD 181.6 million in the previous year, and it is further projected to register a CAGR of 13.6 % during the forecast period.

  • The demand for cloud-computing and insight-driven business models has sparked massive investment in data centers in South Africa over the last few years. Local data facilities enhance internet speeds and processing power for South African businesses.
  • There has been massive data center investment in Africa, particularly in South Africa, and this trend is expected to continue. It is estimated that investment in African data facilities will grow by a further 15% in the next four years, leading to major networking demand.
  • The upcoming IT load capacity of the South African data center market is expected to reach 828.92 MW by 2029. The country's construction of raised floor area is expected to increase to 4.4 million sq. ft by 2029.
  • The country's total number of racks to be installed is expected to reach 220201 units by 2029. Johannesburg is expected to house the maximum number of racks by 2029. There are close to 9 submarine cable systems connecting South Korea, and many are under construction. One such submarine cable that is estimated to start service in 2023 is 2Africa, which stretches over 45,000 km with landing points from Cape Town, Mtunzini, and Port Elizabeth in South Africa.

South Africa 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 South African data center networking market is segmented by component type, including 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). It caters to various end-users such as IT & telecommunications, 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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South Africa Data Center Networking Market Size Summary

The South African data center networking market is experiencing significant growth, driven by the increasing demand for cloud computing and data-driven business models. This surge in demand has led to substantial investments in local data centers, which are enhancing internet speeds and processing power for businesses across the country. The market is characterized by a mild degree of fragmentation, with key players like Cisco Systems Inc., Juniper Networks Inc., and H3C Holding Limited actively expanding their presence through strategic partnerships and initiatives. The telecom sector, in particular, is witnessing a transformation with the rollout of 5G networks, necessitating advanced networking solutions such as application delivery controllers to meet evolving security and performance requirements.

The rise of the Internet of Things (IoT) and the development of mobile communications and cloud computing are further propelling the demand for data center networking solutions in South Africa. The market is seeing increased adoption of Carrier Ethernet, facilitating faster service integration and improved end-to-end performance monitoring. The country's status as the most developed cloud market in sub-Saharan Africa is attracting global cloud providers like Amazon Web Services, Google Cloud Platform, and Microsoft, who are investing in data center facilities to meet the growing demand for data storage. Notable advancements, such as NEC Corporation's implementation of the TIP Phoenix platform and Moxa's introduction of versatile Ethernet switches, underscore the ongoing innovation and competitive dynamics within the market.

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South Africa 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 Increasing Need of Cloud Storage

      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

South Africa Data Center Networking Market Size FAQs

The South Africa Data Center Networking Market is projected to register a CAGR of 13.60% during the forecast period (2024-2030)

Cisco Systems Inc., Juniper Networks Inc., H3C Holding Limited, VMware Inc. and Huawei Technologies Co. Ltd. are the major companies operating in the South Africa Data Center Networking Market.

South Africa Data Center Networking Market Report Snapshots

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