Israel Data Center - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
The Israel Data Center Market size is estimated at 174.8 MW in 2024, and is expected to reach 277.2 MW by 2029, growing at a CAGR of 9.66%. Further, the market is expected to generate colocation revenue of USD 573.1 Million in 2024 and is projected to reach USD 919.2 Million by 2029, growing at a CAGR of 9.91% during the forecast period (2024-2029).
Tier 3 data centers accounts for majority market share in 2023, and expected to maintain dominace during forecasted period
Tier 3 data center facilities accounted for an IT load capacity of 62.39 MW in 2022, which is projected to exhibit a CAGR of 2.25% to reach 72.89 MW in 2029.
The increasing demand for higher redundancy rates is pushing colocation service providers to introduce more Tier 3 and Tier 4 facilities. The IT load capacity contributed by the existing and upcoming Tier 4 data center colocation facilities in Israel would account for about 66.98 MW by 2029, which would considerably support the overall market growth.
The market would witness many cloud aggregators paying attention to the rising demand by Israeli users focusing on lesser latency and faster data transfer rates for highly responsive deployment of their software and cloud-based products.
Tier 1 and 2 facilities were not observed in the region, as the market grows in an already developed global portfolio of data centers and fiber connectivity, highlighting how the adequate number of Tier 3 facilities is supporting the growing demand for facilitating modern technologies in Israel. The Tier 3 facilities, coupled with their associated operations and customers, would also create strong grounds for more Tier 4 facilities to surface in Israel during the forecast period.
Several end-user service providers, including telecommunication service providers such as Bezeq International, utilize the capabilities of Tier 3 centers to cope with the rising data traffic and networking needs in Israel.
Israel Data Center Market Trends
Growing number of smartphone users, digitalization of different services, and increasing digital payments across the country boosts the market growth
The total data traffic per smartphone was 5.2 GB in 2022. It is expected to reach 32 GB in 2029, registering a CAGR of 29.64% during the forecast period.
Several end users witnessed an increase in mobile phones, which contributed to data traffic. For instance, the BFSI sector observed companies like Apple Pay and Google Pay entering the market in 2021. About two-thirds of Israel's terminals are capable of accepting wireless payments through such modes.
The growth can be observed through the significant subscriber penetration of 74% in 2021, which is expected to reach 78% by 2025. This indicates the user inclination and network density in Israel.
Similarly, the digitalization of different services would generate increased demands for data processing as data traffic increases. The e-commerce sector accounts for a penetration rate of 47% in Israel, which is expected to grow by 25% by 2025.
Increasing number of digital consumers boost the data center demand in country
The total number of smartphone users was 7.1 million in 2022.
It is expected to reach 8.4 million by 2029, registering a CAGR of 2.31% during the forecast period.
About 71% of the Israeli population had mobile internet subscriptions in 2021. However, 28% did not use it, and 1% did not have access to a subscription.
Smartphone usage in Israel was evident, with a prominent smartphone adoption rate of 84% in 2021, compared to a projected rate of 87% by 2025. This signifies growth potential, requiring an efficient network to facilitate device and service adoption.
With a strong number of 455 million mobile subscribers expected in 2025 in Israel, the number of smartphone users would force telecom service providers to opt for better and faster data center facilities to cope with the increasing performance demand in Israel.
Israel Data Center Industry Overview
The Israel Data Center Market is fragmented, with the top five companies occupying 37.68%. The major players in this market are Adgar Investments and Development Ltd (Adgar Data Center), Bezeq International General Partner Ltd, EdgeConneX Inc., Lian Group and ServerFarm LLC (sorted alphabetically).
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Tier 3 data centers accounts for majority market share in 2023, and expected to maintain dominace during forecasted period
Tier 3 data center facilities accounted for an IT load capacity of 62.39 MW in 2022, which is projected to exhibit a CAGR of 2.25% to reach 72.89 MW in 2029.
The increasing demand for higher redundancy rates is pushing colocation service providers to introduce more Tier 3 and Tier 4 facilities. The IT load capacity contributed by the existing and upcoming Tier 4 data center colocation facilities in Israel would account for about 66.98 MW by 2029, which would considerably support the overall market growth.
The market would witness many cloud aggregators paying attention to the rising demand by Israeli users focusing on lesser latency and faster data transfer rates for highly responsive deployment of their software and cloud-based products.
Tier 1 and 2 facilities were not observed in the region, as the market grows in an already developed global portfolio of data centers and fiber connectivity, highlighting how the adequate number of Tier 3 facilities is supporting the growing demand for facilitating modern technologies in Israel. The Tier 3 facilities, coupled with their associated operations and customers, would also create strong grounds for more Tier 4 facilities to surface in Israel during the forecast period.
Several end-user service providers, including telecommunication service providers such as Bezeq International, utilize the capabilities of Tier 3 centers to cope with the rising data traffic and networking needs in Israel.
Israel Data Center Market Trends
Growing number of smartphone users, digitalization of different services, and increasing digital payments across the country boosts the market growth
The total data traffic per smartphone was 5.2 GB in 2022. It is expected to reach 32 GB in 2029, registering a CAGR of 29.64% during the forecast period.
Several end users witnessed an increase in mobile phones, which contributed to data traffic. For instance, the BFSI sector observed companies like Apple Pay and Google Pay entering the market in 2021. About two-thirds of Israel's terminals are capable of accepting wireless payments through such modes.
The growth can be observed through the significant subscriber penetration of 74% in 2021, which is expected to reach 78% by 2025. This indicates the user inclination and network density in Israel.
Similarly, the digitalization of different services would generate increased demands for data processing as data traffic increases. The e-commerce sector accounts for a penetration rate of 47% in Israel, which is expected to grow by 25% by 2025.
Increasing number of digital consumers boost the data center demand in country
The total number of smartphone users was 7.1 million in 2022.
It is expected to reach 8.4 million by 2029, registering a CAGR of 2.31% during the forecast period.
About 71% of the Israeli population had mobile internet subscriptions in 2021. However, 28% did not use it, and 1% did not have access to a subscription.
Smartphone usage in Israel was evident, with a prominent smartphone adoption rate of 84% in 2021, compared to a projected rate of 87% by 2025. This signifies growth potential, requiring an efficient network to facilitate device and service adoption.
With a strong number of 455 million mobile subscribers expected in 2025 in Israel, the number of smartphone users would force telecom service providers to opt for better and faster data center facilities to cope with the increasing performance demand in Israel.
Israel Data Center Industry Overview
The Israel Data Center Market is fragmented, with the top five companies occupying 37.68%. The major players in this market are Adgar Investments and Development Ltd (Adgar Data Center), Bezeq International General Partner Ltd, EdgeConneX Inc., Lian Group and ServerFarm LLC (sorted alphabetically).
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 EXECUTIVE SUMMARY & KEY FINDINGS
2 REPORT OFFERS
3 INTRODUCTION
3.1 Study Assumptions & Market Definition
3.2 Scope of the Study?
3.3 Research Methodology
4 MARKET OUTLOOK
4.1 It Load Capacity
4.2 Raised Floor Space
4.3 Colocation Revenue
4.4 Installed Racks
4.5 Rack Space Utilization
4.6 Submarine Cable
5 KEY INDUSTRY TRENDS
5.1 Smartphone Users
5.2 Data Traffic Per Smartphone
5.3 Mobile Data Speed
5.4 Broadband Data Speed
5.5 Fiber Connectivity Network
5.6 Regulatory Framework
5.6.1 Israel
5.7 Value Chain & Distribution Channel Analysis
6 MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)
6.1 Hotspot
6.1.1 Tel Aviv
6.1.2 Rest of Isreal
6.2 Data Center Size
6.2.1 Large
6.2.2 Massive
6.2.3 Medium
6.2.4 Mega
6.2.5 Small
6.3 Tier Type
6.3.1 Tier 1 and
6.3.2 Tier
6.3.3 Tier
6.4 Absorption
6.4.1 Non-Utilized
6.4.2 Utilized
6.4.2.1 By Colocation Type
6.4.2.1.1 Hyperscale
6.4.2.1.2 Retail
6.4.2.1.3 Wholesale
6.4.2.2 By End User
6.4.2.2.1 BFSI
6.4.2.2.2 Cloud
6.4.2.2.3 E-Commerce
6.4.2.2.4 Government
6.4.2.2.5 Manufacturing
6.4.2.2.6 Media & Entertainment
6.4.2.2.7 Telecom
6.4.2.2.8 Other End User
7 COMPETITIVE LANDSCAPE
7.1 Market Share Analysis
7.2 Company Landscape
7.3 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
7.3.1 3SAMNET
7.3.2 Adgar Investments and Development Ltd (Adgar Data Center)
7.3.3 Bezeq International General Partner Ltd
7.3.4 Bynet Data Communications Ltd
7.3.5 EdgeConneX Inc.
7.3.6 Global Technical Realty (GTR)
7.3.7 Global Technical Realty SARL
7.3.8 HQserv
7.3.9 Lian Group
7.3.10 Med 1 IC-1 (1999) Ltd
7.3.11 ServerFarm LLC
7.4 LIST OF COMPANIES STUDIED
8 KEY STRATEGIC QUESTIONS FOR DATA CENTER CEOS
9 APPENDIX
9.1 Global Overview
9.1.1 Overview
9.1.2 Porter’s Five Forces Framework
9.1.3 Global Value Chain Analysis
9.1.4 Global Market Size and DROs
9.2 Sources & References
9.3 List of Tables & Figures
9.4 Primary Insights
9.5 Data Pack
9.6 Glossary of Terms
2 REPORT OFFERS
3 INTRODUCTION
3.1 Study Assumptions & Market Definition
3.2 Scope of the Study?
3.3 Research Methodology
4 MARKET OUTLOOK
4.1 It Load Capacity
4.2 Raised Floor Space
4.3 Colocation Revenue
4.4 Installed Racks
4.5 Rack Space Utilization
4.6 Submarine Cable
5 KEY INDUSTRY TRENDS
5.1 Smartphone Users
5.2 Data Traffic Per Smartphone
5.3 Mobile Data Speed
5.4 Broadband Data Speed
5.5 Fiber Connectivity Network
5.6 Regulatory Framework
5.6.1 Israel
5.7 Value Chain & Distribution Channel Analysis
6 MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)
6.1 Hotspot
6.1.1 Tel Aviv
6.1.2 Rest of Isreal
6.2 Data Center Size
6.2.1 Large
6.2.2 Massive
6.2.3 Medium
6.2.4 Mega
6.2.5 Small
6.3 Tier Type
6.3.1 Tier 1 and
6.3.2 Tier
6.3.3 Tier
6.4 Absorption
6.4.1 Non-Utilized
6.4.2 Utilized
6.4.2.1 By Colocation Type
6.4.2.1.1 Hyperscale
6.4.2.1.2 Retail
6.4.2.1.3 Wholesale
6.4.2.2 By End User
6.4.2.2.1 BFSI
6.4.2.2.2 Cloud
6.4.2.2.3 E-Commerce
6.4.2.2.4 Government
6.4.2.2.5 Manufacturing
6.4.2.2.6 Media & Entertainment
6.4.2.2.7 Telecom
6.4.2.2.8 Other End User
7 COMPETITIVE LANDSCAPE
7.1 Market Share Analysis
7.2 Company Landscape
7.3 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
7.3.1 3SAMNET
7.3.2 Adgar Investments and Development Ltd (Adgar Data Center)
7.3.3 Bezeq International General Partner Ltd
7.3.4 Bynet Data Communications Ltd
7.3.5 EdgeConneX Inc.
7.3.6 Global Technical Realty (GTR)
7.3.7 Global Technical Realty SARL
7.3.8 HQserv
7.3.9 Lian Group
7.3.10 Med 1 IC-1 (1999) Ltd
7.3.11 ServerFarm LLC
7.4 LIST OF COMPANIES STUDIED
8 KEY STRATEGIC QUESTIONS FOR DATA CENTER CEOS
9 APPENDIX
9.1 Global Overview
9.1.1 Overview
9.1.2 Porter’s Five Forces Framework
9.1.3 Global Value Chain Analysis
9.1.4 Global Market Size and DROs
9.2 Sources & References
9.3 List of Tables & Figures
9.4 Primary Insights
9.5 Data Pack
9.6 Glossary of Terms
