Public Cloud - Bahrain

Bahrain

In Bahrain, revenue in the Public Cloud market is projected to reach US$119.60m in 2024.
Software as a Service is expected to dominate the market in Bahrain with a projected market volume of US$42.38m in 2024.
Revenue in this market is anticipated to show an annual growth rate (CAGR 2024-2029) of 18.23%, leading to a market volume of US$276.30m by 2029.
In global comparison, the majority of revenue will be generated the United States, with figures reaching US$388.50bn in 2024.
Bahrain is increasingly adopting public cloud solutions to enhance digital transformation initiatives, driven by a growing demand for agile and scalable IT infrastructure.

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 Bahrain is experiencing steady growth, driven by factors such as increasing adoption of digital technologies, rising awareness of the benefits of online services, and the convenience offered by cloud solutions. This growth is impacted by the average growth rate in sub-markets such as Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery as a Service. These sub-markets contribute to the overall expansion of the Public Cloud market in Bahrain.

Customer preferences: In Bahrain, there has been a notable increase in the adoption of public cloud services by organizations, driven by the need for remote work solutions and digital transformation. This trend is expected to continue as businesses prioritize agility and cost efficiency. Additionally, the rise of e-commerce and online shopping has led to a growing demand for cloud-based solutions to support online transactions and enable businesses to seamlessly manage their online operations. This shift towards digitalization is also influenced by the country's young and tech-savvy population, who are increasingly comfortable with utilizing digital services for various aspects of their daily lives. As a result, the public cloud market in Bahrain is expected to witness significant growth in the coming years, catering to the evolving needs and preferences of consumers in the country.

Trends in the market: In Bahrain, the public cloud market is experiencing a surge in demand, with more businesses and government agencies moving their data and operations to the cloud. This trend is driven by the country's efforts to modernize its infrastructure and promote digital transformation. As a result, there is a growing need for cloud-based solutions and services, including software-as-a-service (SaaS), platform-as-a-service (PaaS), and infrastructure-as-a-service (IaaS). This shift towards the cloud is expected to continue in the coming years, presenting significant opportunities for cloud service providers and technology companies. Industry stakeholders must stay updated on these trends and adapt their strategies to cater to the evolving needs of the market. This includes investing in robust and secure cloud infrastructure, offering a diverse range of cloud services, and staying compliant with data privacy and security regulations. Failure to do so could result in missed opportunities and losing out to competitors in this rapidly expanding market.

Local special circumstances: 'In Bahrain, the Public Cloud Market is experiencing rapid growth due to the country's small size and limited IT infrastructure, leading to a high demand for cloud services. Additionally, the government's initiatives to promote digital transformation and attract foreign investment have also contributed to the market's expansion. This is further amplified by the country's strategic location in the Middle East, making it a favorable hub for businesses looking to establish a presence in the region. Furthermore, the country's progressive regulatory environment and supportive government policies have created a favorable market for public cloud providers.

Underlying macroeconomic factors: The Public Cloud Market in Bahrain is heavily influenced by macroeconomic factors such as investment in digital infrastructure, regulatory support, and government policies promoting the adoption of cloud computing. With a strong focus on developing a digital economy, Bahrain has taken steps to attract foreign investment and encourage local businesses to adopt cloud technology. This has led to a rapid growth of the Public Cloud Market in the country, as organizations are increasingly recognizing the benefits of cloud computing in terms of cost savings, scalability, and efficiency. Additionally, the government's commitment to diversifying the economy and reducing dependence on oil revenues has also played a significant role in driving the growth of the Public Cloud Market in Bahrain.

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.