Public Cloud - Eastern Africa

Eastern Africa

In Eastern Africa, revenue in the Public Cloud market is projected to reach US$2,403.00m in 2025.
Infrastructure as a Service dominates this market in the region, with a projected market volume of US$784.50m in 2025.
Revenue in Eastern Africa is expected to show an annual growth rate (CAGR 2025-2029) of 21.16%, resulting in a market volume of US$5,179.00m by 2029.
In a global comparison, the most revenue will be generated the United States, which is expected to reach US$466.10bn in 2025.
In Eastern Africa, particularly in Ethiopia, the public cloud market is experiencing rapid growth as businesses increasingly adopt digital transformation strategies to enhance operational efficiency.

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

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Analyst Opinion

The Public Cloud Market in Eastern Africa has been experiencing considerable growth, driven by factors such as increasing adoption of digital technologies, rising awareness of the benefits of cloud services, and the convenience offered by online solutions. This growth can be attributed to the various sub-markets within the region, which are seeing significant demand for Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery as a Service solutions.

Customer preferences: One emerging trend in the Eastern Africa region is the growing demand for public cloud services among small and medium-sized enterprises (SMEs). With the increasing adoption of digital technologies and the need for remote work solutions, SMEs are turning to public cloud providers for cost-effective and scalable IT infrastructure. This trend is also fueled by the region’s large youth population, who are digital natives and are comfortable with cloud-based solutions. Additionally, the rise of e-commerce and online banking in the region is creating a need for secure and reliable cloud storage and data management solutions.

Trends in the market: In Eastern Africa, the Public Cloud Market is experiencing a surge in demand due to the increasing adoption of digital technologies by businesses. This has led to a rise in the use of cloud-based services for data storage, software development, and collaboration. Moreover, there is a growing trend of leveraging public cloud platforms for cost-effective and efficient IT infrastructure. This trajectory is significant for industry stakeholders as it presents opportunities for growth and innovation. However, it also poses challenges in terms of data security and regulatory compliance. As such, industry players are investing in advanced security measures and compliance certifications to cater to the evolving needs of the market.

Local special circumstances: In Eastern Africa, the Public Cloud market is still in its early stages, but is expected to grow rapidly due to the region's increasing adoption of technology and government initiatives promoting digital transformation. However, factors such as limited internet infrastructure and low internet penetration rates may hinder market growth. Additionally, the region's diverse cultural and regulatory landscape may pose challenges for multinational cloud providers entering the market. For example, data privacy laws and cultural attitudes towards data sharing may require companies to adapt their services to meet local expectations.

Underlying macroeconomic factors: The Public Cloud Market in Eastern Africa is heavily influenced by macroeconomic factors such as economic stability, government policies, and technological advancements. Countries with strong economic growth and favorable policies towards digital transformation are experiencing a surge in demand for public cloud services. Additionally, the increasing adoption of digital technologies in various industries, such as healthcare, finance, and education, is driving the need for scalable and cost-effective cloud solutions. Furthermore, the ongoing investments in digital infrastructure and initiatives to promote digital literacy are creating a conducive environment for the growth of the public cloud market in the region.

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.