Public Cloud - Egypt

Egypt

In Egypt, revenue in the Public Cloud market is projected to reach US$699.20m in 2024.
Platform as a Service dominates the market in Egypt with a projected market volume of US$259.70m in 2024.
Revenue in this market is expected to show an annual growth rate (CAGR 2024-2029) of 26.92%, resulting in a market volume of US$2,303.00m by 2029.
In global comparison, most revenue will be generated the United States, with a forecast of US$388.50bn in 2024.
Egypt's public cloud market is experiencing significant growth as businesses increasingly adopt digital transformation strategies to enhance operational efficiency and service delivery.

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

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Analyst Opinion

The Public Cloud market in Egypt is seeing steady growth, driven by factors such as increasing adoption of digital technologies and rising awareness of the convenience of online services. However, the minimal growth rate may be impacted by factors such as limited infrastructure and challenges in data security and privacy.

Customer preferences: The COVID-19 pandemic has accelerated the adoption of public cloud solutions in Egypt, as businesses and organizations seek to enable remote work and maintain continuity. This has led to an increase in demand for cloud-based collaboration tools, virtual event platforms, and remote access solutions. Additionally, there has been a growing trend towards utilizing public cloud services for data storage and management, as companies look to streamline and secure their data in a cost-effective manner.

Trends in the market: In Egypt, the Public Cloud Market is experiencing a surge in demand for cloud-based services, particularly in the government and education sectors. This trend is driven by the government's efforts to modernize and digitize its services, as well as the growing adoption of e-learning platforms in the education sector. This trajectory is significant as it indicates a shift towards more efficient and cost-effective solutions, with potential implications for industry stakeholders such as cloud service providers and IT companies. It also highlights the increasing importance of digital transformation in Egypt's economy and its potential to drive growth and innovation in various sectors.

Local special circumstances: In Egypt, the Public Cloud Market is rapidly growing due to the country's increasing digitalization efforts and investments in technology infrastructure. This has led to a surge in demand for cloud services, particularly among small and medium-sized enterprises who are seeking cost-effective and scalable solutions. Additionally, the government's initiatives to promote entrepreneurship and support the startup ecosystem have also contributed to the growth of the market. Furthermore, the country's strategic location and favorable business climate make it an attractive destination for multinational companies looking to expand their operations in the region.

Underlying macroeconomic factors: In Egypt, the growth of the Public Cloud Market is influenced by macroeconomic factors such as government investments in digital infrastructure, regulatory support for cloud technology, and the country's overall economic stability. As Egypt continues to experience economic growth and modernization, there is a growing demand for cloud services to support businesses and government operations. Additionally, the country's strategic location and growing technology sector make it an attractive market for international cloud providers. However, challenges such as limited internet penetration and cybersecurity concerns may hinder the market's growth potential.

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.