Market Size of United Arab Emirates Data Center Networking Industry
| Study Period | 2018 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.17 Billion |
| Market Size (2029) | USD 0.34 Billion |
| CAGR (2024 - 2029) | 14.40 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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United Arab Emirates Data Center Networking Market Analysis
The United Arab Emirates Data Center Networking Market size is estimated at USD 0.17 billion in 2024, and is expected to reach USD 0.34 billion by 2029, growing at a CAGR of 14.40% during the forecast period (2024-2029).
- The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.
- Under Construction IT Load Capacity: The upcoming IT load capacity of the United Arab Emirates data center rack market is expected to reach 840 MW by 2029. Mega data center type is expected to witness the highest growth during the forecast period in the UAE. Players invest in the mega system and contribute to its growth. For example, Moro Hub, a subsidiary of Dubai energy company DEWA, has started building a solar-powered data center. The 100MW power plant was announced in May 2021.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 5.0 million sq. ft by 2029.
- Planned Racks: The country's total number of racks to be installed is expected to reach above 2,50,000 units by 2029. Abu Dhabi is expected to house the maximum number of racks by 2029.
- Planned Submarine Cables: There are more than 27 submarine cable systems connecting the United Arab Emirates, and many are under construction. For instance, in March 2023, The Telecommunications Corporation (EITC) announced plans to connect the United Arab Emirates and Oman via a newly opened 275-kilometer international fiber optic submarine cable named Oman Emirates Gateway (OEG).
United Arab Emirates 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 Korean data center networking market is segmented by product (ethernet switches, routers, storage area network (SAN), application delivery controllers (ADC), and other networking equipment), by services (installation & integration, training & consulting, and support & maintenance), and by 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.
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United Arab Emirates Data Center Networking Market Size Summary
The United Arab Emirates Data Center Networking Market is poised for significant expansion, driven by the increasing demand for cloud computing, stringent government regulations on data security, and substantial investments from local players. The market is characterized by the development of mega data centers, with notable projects like the solar-powered data center by Moro Hub. The country's infrastructure is set to grow with a substantial increase in IT load capacity, raised floor space, and the installation of numerous racks, particularly in Abu Dhabi. The expansion of submarine cable systems further enhances the connectivity and capacity of the UAE's data center networking landscape. The government's strategic initiatives to foster a knowledge-based economy and reduce oil dependency are pivotal in this growth, with digital transformation and AI integration being central to its economic and cultural vision.
The UAE's telecommunications sector, led by Etisalat and DU, plays a crucial role in the adoption of advanced technologies such as big data, AI, and blockchain, supporting the burgeoning data center market. The rapid rollout of 4G and the upcoming 5G technology are encouraging telecom vendors to invest heavily in data center facilities. Key players in the data center cooling market, including VMware Inc., Eaton Corporation, Cisco Systems Inc., Fujitsu Limited, and Schneider Electric, are actively enhancing their offerings through strategic partnerships and acquisitions. Innovations like NVIDIA's SpectrumXtreme and Juniper Networks' EX4100 series are set to improve cloud-based networking performance, underscoring the dynamic nature of the market. As the UAE continues to integrate AI across various sectors, the data center networking market is expected to experience robust growth, aligning with the country's ambitious economic diversification plans.
United Arab Emirates Data Center Networking Market Size - Table of Contents
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1. Market Dynamics
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Increasing Trend of High-Performance Computing across Europe
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1.2.2 Growing Investments in IT& Telecom Sector
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1.3 Market Restraints
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1.3.1 Regulatory constraints
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1.4 Value Chain / Supply Chain Analysis
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1.5 Industry Attractiveness - Porter's Five Forces Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 Assessment of COVID-19 Impact
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2. MARKET SEGMENTATION
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2.1 By Component
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2.1.1 By Product
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2.1.1.1 Ethernet Switches
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2.1.1.2 Routers
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2.1.1.3 Storage Area Network (SAN)
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2.1.1.4 Application Delivery Controller (ADC)
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2.1.1.5 Other Networking Equipment
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2.1.2 By Services
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2.1.2.1 Installation & Integration
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2.1.2.2 Training & Consulting
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2.1.2.3 Support & Maintenance
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2.2 End-User
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2.2.1 IT & Telecommunication
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2.2.2 BFSI
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2.2.3 Government
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2.2.4 Media & Entertainment
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2.2.5 Other End-Users
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United Arab Emirates Data Center Networking Market Size FAQs
How big is the United Arab Emirates Data Center Networking Market?
The United Arab Emirates Data Center Networking Market size is expected to reach USD 0.17 billion in 2024 and grow at a CAGR of 14.40% to reach USD 0.34 billion by 2029.
What is the current United Arab Emirates Data Center Networking Market size?
In 2024, the United Arab Emirates Data Center Networking Market size is expected to reach USD 0.17 billion.
