Infrastructure as a Service - Eastern Africa

Eastern Africa

In Eastern Africa, revenue in the 0 market is projected to reach US$0.78bn in 2025.
The Infrastructure as a Service market dominates the market with a projected market volume of 0 in 2025.
Revenue in Eastern Africa is expected to exhibit an annual growth rate (CAGR 2025-2029) of 23.25%, leading to a market volume of US$1.80bn by 2029.
In a global context, the majority of revenue will be generated the United States, which is expected to reach US$93,990.00m in 2025.
As Ethiopia continues to invest in digital infrastructure, the demand for Infrastructure as a Service in the Public Cloud market is steadily increasing.

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

Market

Region

Region comparison

Currency

Analyst Opinion

The Infrastructure as a Service Market in Eastern Africa is experiencing considerable growth, driven by the increasing adoption of digital technologies, rising awareness of the benefits of cloud services, and the convenience of online infrastructure solutions. This growth rate is impacted by the region's growing economy, technological advancements, and the need for efficient and cost-effective infrastructure solutions.

Customer preferences: As more businesses in Eastern Africa shift towards digital transformation, there is a growing demand for Infrastructure as a Service (IaaS) solutions in the Public Cloud Market. This is driven by the need for flexible and scalable infrastructure to support the region's rapidly evolving business landscape. Additionally, cultural values of efficiency and cost-effectiveness are driving the adoption of IaaS, as it allows organizations to only pay for the resources they need, rather than investing in costly on-premise infrastructure.

Trends in the market: In Eastern 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 computing. This trend is driven by the region's rapid economic growth and the need for cost-effective and scalable IT solutions. Additionally, there is a growing emphasis on digital transformation and data-driven decision making, leading to a rise in demand for cloud-based infrastructure services. This trajectory is significant as it presents opportunities for industry stakeholders to expand their market presence and tap into the region's potential. However, it also poses challenges as there is a lack of adequate infrastructure and skilled workforce in the region. To address these implications, collaborations and investments in infrastructure development and upskilling initiatives are crucial to sustain the growth of the Infrastructure as a Service Market in Eastern Africa.

Local special circumstances: In Eastern Africa, the Infrastructure as a Service Market within the Public Cloud Market is gaining momentum due to the region's growing internet connectivity and the government's focus on digital transformation. With a large young population and a growing tech-savvy workforce, the demand for cloud-based solutions is on the rise. Moreover, the unique challenges faced by the region, such as limited IT infrastructure and skilled workforce, are driving the adoption of Infrastructure as a Service, making it a key player in the region's digital economy.

Underlying macroeconomic factors: The Infrastructure as a Service Market within the Public Cloud Market in Eastern Africa is largely influenced by macroeconomic factors such as government investments in digital infrastructure and policies promoting the adoption of cloud technology. Countries with strong economic growth and stable political environments are experiencing higher adoption rates of public cloud services, as businesses are more likely to invest in cost-effective and scalable solutions in favorable economic conditions. Additionally, the growing demand for digital transformation and the rise of data-intensive industries such as e-commerce and fintech are driving the need for efficient and flexible cloud infrastructure in the region.

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.