Public Cloud - Eastern Africa

Eastern Africa

Revenue in the Public Cloud market is projected to reach US$1,902.00m in 2024.
Infrastructure as a Service dominates the market with a projected market volume of US$635.30m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 22.18%, resulting in a market volume of US$5,179.00m by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$8.49 in 2024.
In global comparison, most revenue will be generated in the United States (US$388.50bn in 2024).

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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Market

Region

Region comparison

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Analyst Opinion

The Public Cloud market in Eastern Africa is seeing considerable growth, driven by factors such as increasing adoption of digital technologies, growing awareness of the benefits of online services, and the convenience offered by various cloud offerings. This growth is fueled by the sub-markets of Infrastructure, Platform, Software, Business Process, and Desktop as a Service, making it a diverse and rapidly expanding market. Factors such as improved internet connectivity and a growing tech-savvy population are also contributing to the market's growth rate in the region.

Customer preferences: As more businesses and organizations in Eastern Africa embrace digital transformation, there is a growing demand for public cloud services. This trend is driven by the need for efficient and cost-effective solutions for data storage, collaboration, and remote work. Additionally, the rise of e-commerce and online banking in the region has led to an increased adoption of cloud-based platforms for secure and seamless transactions. Furthermore, the growing tech-savvy population in Eastern Africa is fueling the demand for public cloud services, as consumers become more comfortable with using digital solutions for their daily needs.

Trends in the market: In Eastern Africa, the Public Cloud Market is experiencing significant growth, with more businesses and organizations adopting cloud-based solutions for their operations. This trend is being driven by the increasing availability of reliable internet connectivity and the need for scalable and cost-effective IT solutions. As a result, there is a growing demand for cloud service providers in the region. This trend is expected to continue in the coming years, with the potential to transform the IT landscape in Eastern Africa. It also presents opportunities for industry stakeholders, such as cloud service providers, to expand their market presence and offerings in the region. Additionally, this trend has the potential to drive digital transformation and innovation in various industries, leading to increased efficiency and competitiveness. However, it also poses challenges, such as the need for robust cybersecurity measures and the potential for data privacy concerns. Overall, the trajectory of this trend is towards a more digitized and interconnected business landscape in Eastern Africa, with significant implications for industry stakeholders and the region's economy.

Local special circumstances: In Eastern Africa, the Public Cloud Market is growing rapidly due to the region's strong digital infrastructure and increasing adoption of cloud-based solutions. However, unique factors such as limited internet connectivity and regulatory challenges present barriers to market growth. The diverse cultural and linguistic landscape also influences the market dynamics, with local players catering to specific language and cultural needs. Additionally, government initiatives promoting digital transformation and the growth of e-commerce are driving the demand for public cloud services in the region.

Underlying macroeconomic factors: The growth of the Public Cloud Market in Eastern Africa is heavily influenced by macroeconomic factors such as government initiatives, economic stability, and digital transformation efforts. Countries with supportive government policies and stable economic conditions are witnessing a higher adoption of public cloud services. Moreover, the increasing focus on digitalization and modernization of IT infrastructure in the region is fueling the demand for public cloud solutions. Additionally, the rapid growth of small and medium enterprises in Eastern Africa is creating a favorable market landscape for public cloud providers to expand their services and drive market growth.

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.