Infrastructure as a Service - Africa

Africa

Revenue in the 0 market in Africa is projected to reach US$2.96bn in 2024.
Infrastructure as a Service market is expected to dominate the African market with a projected market volume of 0 in 2024.
Revenue in this market is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 22.45%, leading to a market volume of US$8.15bn by 2029.
In a global context, the majority of revenue will be generated the United States, which is expected to reach US$77,050.00m in 2024.
As African nations increasingly prioritize digital transformation, the Infrastructure as a Service market is rapidly evolving, particularly in South Africa's burgeoning tech ecosystem.

Key regions: United Kingdom, China, France, Netherlands, Germany

Market

Region

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Analyst Opinion

The Infrastructure as a Service market in the Public Cloud Market in Africa is experiencing average growth, driven by factors such as increasing digitalization, growing demand for online services, and rising awareness about the benefits of cloud computing. This growth is being impacted by the region's rapid adoption of digital technologies and the convenience offered by cloud services.

Customer preferences: With the increased adoption of cloud computing in Africa, there is a growing demand for Infrastructure as a Service (IaaS) solutions. This is driven by the need for scalable and cost-effective IT infrastructure to support the region's growing digital economy. Additionally, the rise of remote work and virtual collaboration during the COVID-19 pandemic has further accelerated the demand for IaaS, as businesses seek flexible and secure cloud-based solutions for their operations. This trend is expected to continue, as organizations in Africa increasingly prioritize digital transformation to stay competitive in the global market.

Trends in the market: In Africa, the Infrastructure as a Service Market within the Public Cloud Market is experiencing a surge in demand due to the increasing adoption of cloud-based services by businesses. There is also a growing trend of governments investing in digital infrastructure to improve connectivity and promote economic growth. Additionally, there is a shift towards hybrid cloud solutions, as organizations seek to balance cost-effectiveness with data security. These trends suggest a positive trajectory for the market, with potential implications for industry stakeholders such as cloud service providers and data center operators. They may need to adapt their offerings and infrastructure to cater to the unique needs and challenges of the African market, while also leveraging the growing demand for digital services in the region.

Local special circumstances: In Africa, the Infrastructure as a Service Market within the Public Cloud Market is heavily influenced by the region's unique infrastructure challenges. Limited access to reliable internet connectivity and electricity hinders the adoption of cloud services, leading to the development of innovative solutions such as solar-powered data centers and mobile-based cloud services. Additionally, the diverse cultural and regulatory landscapes across different African countries present a complex market for cloud service providers, with each country requiring tailored strategies for successful market entry and growth.

Underlying macroeconomic factors: The Infrastructure as a Service Market within the Public Cloud Market in Africa is heavily influenced by macroeconomic factors such as government initiatives to promote digital transformation, investment in ICT infrastructure, and favorable regulatory policies. Countries with strong economic growth, stable political environments, and supportive fiscal policies are experiencing higher adoption rates of public cloud services, particularly in the Infrastructure as a Service segment. Additionally, the increasing demand for cost-effective and scalable IT solutions, coupled with the growing trend of remote work, is driving the demand for Infrastructure as a Service in the public cloud market in Africa.

Methodology

Data coverage:

The data encompasses B2B and B2C enterprises. Figures are based on the money spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

The segment size is determined through a top-down approach. We use financial statements such as annual reports, quarterly earnings, and expert opinions to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP and level of telecommunications infrastructure.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the relevant segment. 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.