Public Cloud - Africa

Africa

Revenue in the Public Cloud market in Africa is projected to reach US$10.12bn in 2024.
Platform as a Service is expected to dominate the market withAfrica with a projected market volume of US$3.14bn in 2024.
Revenue in Africa is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 20.26%, leading to a market volume of US$25.46bn by 2029.
In a global context, the majority of revenue will be generated the United States, amounting to US$388.50bn in 2024.
As African businesses increasingly embrace digital transformation, South Africa's public cloud market is rapidly evolving to support enhanced scalability and flexibility.

Key regions: United States, Germany, China, Japan, United Kingdom

Definition:

A public cloud is defined as the digital infrastructure and computing resources that are managed by a service provider. Examples of public cloud computing resources include virtual machines, storage, and services, all of which are available for purchase with flexible (e.g., pay as you go and subscription) business models. Such payment options make it possible for customers to access, scale, and utilize resources as needed. Public cloud solutions make it possible for users to save on IT costs, increase their efficiency, and take advantage of advanced technologies without having to invest in long-term IT solutions. Public cloud service providers own and maintain the physical infrastructure, hardware, and software. Users only need to pay for the computing resources that they require. The Public Cloud market refers to the companies that provide these cloud computing resources and services to individuals, businesses, and organizations.

Structure:

The Public Cloud market is structured into five markets based on the type of service models provided by the companies.

The Infrastructure as a Service (IaaS) market covers the resources and services related to the data center infrastructure.
The Platform as a Service (PaaS) market covers the resources and services related to the virtual environments used for software development.
The Software as a Service market (SaaS) market covers the resources and services related to software applications that can be accessed via a web browser.
The Business Process as a Service (BPaaS) market covers the resources and services related to the various business processes such as finance and accounting, human resources, customer service, and supply chain management, all delivered through the cloud.
The Desktop as a Service (DaaS) market covers the resources and services related to virtual desktop environments, which are accessible from any device with an internet connection.

Additional Information:

The public cloud market comprises revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players of the public cloud market include companies such as Amazon (Amazon web services), Microsoft (Azure), Google (Cloud), and IBM (Cloud).

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Analyst Opinion

The Public Cloud market in Africa is witnessing steady growth, fueled by factors such as increasing adoption of digital technologies, rising awareness about cloud services, and the convenience offered by online platforms. The market is expected to grow at an average rate, influenced by factors such as government initiatives, technological advancements, and growing demand for cost-effective solutions.

Customer preferences: As digital transformation continues to gain momentum in Africa, there has been a noticeable increase in demand for public cloud services. This is driven by a growing preference for cost-efficient and scalable solutions, especially among small and medium-sized businesses. Additionally, the rise of remote work and e-commerce has led to a greater need for reliable and secure cloud infrastructure for data storage and management. Furthermore, the growing adoption of mobile devices and internet access has made it easier for individuals and businesses to access and utilize public cloud services.

Trends in the market: In Africa, the Public Cloud Market is experiencing a significant increase in adoption due to the rising demand for digital transformation and data storage solutions. This trend is expected to continue as more businesses and government agencies turn to the cloud for cost savings, scalability, and flexibility. Furthermore, there is a growing focus on cybersecurity in the region, leading to a surge in the use of cloud-based security solutions. This presents opportunities for cloud providers to offer tailored solutions and expand their market share in Africa.

Local special circumstances: In Africa, the Public Cloud Market is experiencing significant growth due to the continent's increasing internet penetration and government initiatives promoting digital transformation. However, challenges such as unreliable power supply and limited infrastructure in some regions hinder market development. Additionally, cultural differences and varying data privacy regulations across different countries in Africa influence the adoption of public cloud services. These factors, along with the region's unique market dynamics, shape the growth trajectory of the Public Cloud Market in Africa.

Underlying macroeconomic factors: The growth of the Public Cloud Market is also influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with strong government support and investments in digital technologies are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Additionally, the increasing adoption of cloud computing in various industries and the growing demand for cost-effective and flexible IT solutions are driving the growth of the public cloud market in Africa.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the money spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of telecommunications infrastructure. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.