Public Cloud - Ethiopia

Ethiopia

Revenue in the Public Cloud market is projected to reach US$383.30m in 2024.
Infrastructure as a Service dominates the market with a projected market volume of US$136.30m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 26.51%, resulting in a market volume of US$1,242.00m by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$6.09 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 Ethiopia is experiencing significant growth and development.

Customer preferences: In Ethiopia, there is a growing demand for Public Cloud services among businesses and organizations. This is primarily driven by the need for cost-effective and scalable IT solutions. Many companies in Ethiopia are realizing the benefits of moving their infrastructure and applications to the cloud, as it allows them to reduce their IT expenses and focus on their core business operations. Additionally, the flexibility and accessibility of Public Cloud services make it an attractive option for businesses of all sizes.

Trends in the market: One of the key trends in the Public Cloud market in Ethiopia is the increasing adoption of Software-as-a-Service (SaaS) solutions. This is driven by the need for businesses to access and use software applications without the need for extensive infrastructure and maintenance. SaaS solutions offer businesses the ability to streamline their operations and improve productivity. Another trend in the market is the growing demand for cloud storage and backup services. With the increasing amount of data being generated by businesses, the need for secure and reliable storage solutions is becoming more important.

Local special circumstances: Ethiopia has a rapidly growing technology sector, with many startups and tech companies emerging in recent years. These companies are leveraging Public Cloud services to build and scale their businesses. The government of Ethiopia is also playing a role in promoting the adoption of cloud computing. It has implemented policies and initiatives to encourage the use of cloud services, such as the establishment of data centers and the provision of incentives for businesses to migrate to the cloud.

Underlying macroeconomic factors: The growth of the Public Cloud market in Ethiopia is also influenced by several macroeconomic factors. The country has been experiencing strong economic growth in recent years, which has led to an increase in disposable income and investment in technology. Additionally, the government's focus on digital transformation and the development of the technology sector has created a favorable environment for the adoption of cloud services. Furthermore, the improving internet infrastructure and connectivity in Ethiopia have made it easier for businesses to access and utilize Public Cloud services. In conclusion, the Public Cloud market in Ethiopia is experiencing significant growth and development due to customer preferences for cost-effective and scalable IT solutions. The increasing adoption of SaaS solutions and the demand for cloud storage and backup services are key trends in the market. Local special circumstances, such as the emergence of the technology sector and government initiatives, are also driving the growth of the market. The underlying macroeconomic factors, including strong economic growth and improving internet infrastructure, further contribute to the development of the Public Cloud market in Ethiopia.

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.