Infrastructure as a Service - Africa

Revenue in the Infrastructure as a Service market is projected to reach US$2.96bn in 2024.
0.0 dominates the market with a projected market volume of 0.0 in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 22.45%, resulting in a market volume of US$8.15bn by 2029.
In global comparison, most revenue will be generated United States (US$77.05bn in 2024).

Definition:

Infrastructure as a Service (IaaS) refers to the type of public cloud service that provides virtualized computing resources. IaaS offers on-demand access to virtual machines, storage, and networking components, thus allowing users to build, deploy, and manage IT infrastructure without the need to invest in physical hardware. IaaS offers scalability, flexibility, and cost-efficiency by requiring users to pay only for the resources they consume. The IaaS market includes the companies that provide these types of public cloud resources and services to individuals, businesses, and organizations. A typical example of this type of service is Amazon Web Services (AWS). AWS provides a wide range of virtual machines, storage, and networking resources that users can access on demand to build and manage their IT infrastructures.

Additional Information:

The Infrastructure as a Service (IaaS) 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 IaaS market include companies such as Amazon (Amazon web services), Microsoft (Azure), Google (Cloud), and IBM (Cloud).

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Server capabilities, such as Amazon Elastic Compute Cloud (EC2), Azure IaaS, and Google Compute Engine (GCE)
Computing resources, such as Amazon Elastic Compute Cloud (EC2), Azure IaaS, and Google Compute Engine (GCE)
Storage resources, such as Amazon Elastic Block Store (EBS), Azure Blob Storage, and Google Cloud
Network capabilities, such as Google Cloud Interconnect and Alibaba Cloud Express Connect

Business-Process-as-a-Service (BPaaS), such as payroll management and accounting solutions via ADP Workforce Now, Intuit QuickBooks Online, Workday, and Oracle NetSuite
Desktop-as-a-Service (DaaS), such as Amazon WorkSpaces, Microsoft Windows Virtual Desktop, VMware Horizon Cloud, and Citrix Virtual Apps and Desktops
Platform-as-a-Service (PaaS), such as Heroku, AWS Elastic Beanstalk, Google App Engine, Microsoft Azure App Service, and IBM Cloud Foundry
Software-as-a-Service (SaaS), such as Google Workspace, Microsoft 365, Salesforce, Zoom, and Slack
System infrastructure software, such as Microsoft Windows Server, Linux distributions, VMware for virtualization, and Cisco’s networking software
Private cloud services, such as IBM Cloud Private, Microsoft Azure Stack HCI, and VMware vCloud Suite

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.

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.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Together with platform as a service (PaaS) and infrastructure as a service (IaaS), software as a service (SaaS) is one of the three primary tiers of cloud computing. It allows businesses to redirect resources away from IT hardware, software, and personnel expenses, and towards other business needs. Currently, the most prominent companies in the SaaS market are Microsoft, Salesforce, Oracle, SAP, and Google.