Public Cloud - Egypt

Egypt

Revenue in the Public Cloud market is projected to reach US$699.20m in 2024.
Platform as a Service dominates the market with a projected market volume of US$259.70m in 2024.
Revenue 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.
The average spend per employee in the Public Cloud market is projected to reach US$21.13 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

Currency

Analyst Opinion

The Public Cloud market in Egypt has been experiencing significant growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Egyptian businesses are increasingly turning to the Public Cloud for their IT infrastructure needs. This is due to several factors, including the need for scalability and flexibility in managing their data and applications. By adopting the Public Cloud, businesses can easily scale their resources up or down based on their needs, without the need for significant upfront investments in hardware or infrastructure. Additionally, the Public Cloud offers a wide range of services and solutions that can be customized to meet the specific requirements of different industries and businesses.

Trends in the market: One of the key trends in the Public Cloud market in Egypt is the growing adoption of Software-as-a-Service (SaaS) solutions. SaaS allows businesses to access and use software applications over the internet, eliminating the need for on-premises installations and maintenance. This trend is driven by the increasing demand for productivity and collaboration tools, such as customer relationship management (CRM) systems and enterprise resource planning (ERP) software. Another trend in the market is the rise of hybrid cloud solutions. Hybrid cloud combines the benefits of both public and private clouds, allowing businesses to leverage the scalability and cost-effectiveness of the Public Cloud while maintaining control over sensitive data and applications. This trend is particularly relevant for industries with strict data privacy and security regulations, such as healthcare and finance.

Local special circumstances: Egypt has a rapidly growing startup ecosystem, with a large number of innovative companies emerging in various sectors. These startups often have limited resources and budgets, making the Public Cloud an attractive option for their IT infrastructure needs. By leveraging the Public Cloud, startups can access enterprise-grade infrastructure and services at a fraction of the cost of building and managing their own data centers. Additionally, the Egyptian government has been actively promoting the adoption of cloud technologies as part of its digital transformation initiatives. This includes initiatives to modernize government services and improve the efficiency of public sector operations. The government's support and investment in cloud infrastructure have contributed to the growth of the Public Cloud market in Egypt.

Underlying macroeconomic factors: Egypt's strong economic growth and increasing internet penetration rates have played a significant role in driving the growth of the Public Cloud market. As the economy expands, businesses are looking for cost-effective and scalable solutions to meet their IT needs. The increasing internet penetration rates have also made it easier for businesses to access and utilize cloud services. Furthermore, the COVID-19 pandemic has accelerated the adoption of cloud technologies in Egypt. With remote work becoming the norm, businesses have had to quickly adapt their IT infrastructure to support remote collaboration and ensure business continuity. The Public Cloud has provided a flexible and scalable solution for businesses to meet these challenges. In conclusion, the Public Cloud market in Egypt is experiencing significant growth due to customer preferences for scalability and flexibility, the adoption of SaaS and hybrid cloud solutions, the presence of a vibrant startup ecosystem, government support, strong macroeconomic factors, and the impact of the COVID-19 pandemic. This trend is expected to continue as more businesses in Egypt recognize the benefits of cloud technologies for their operations.

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.