Infrastructure as a Service - Nigeria

Nigeria

Revenue in the Infrastructure as a Service market is projected to reach US$288.90m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 29.42%, resulting in a market volume of US$1,049.00m by 2029.
The average spend per employee in the Infrastructure as a Service market is projected to reach US$3.70 in 2024.
In global comparison, most revenue will be generated in the United States (US$78,280.00m in 2024).

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

Market

Region

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Analyst Opinion

The Infrastructure as a Service market in Nigeria is experiencing significant growth and development.

Customer preferences: Nigerian customers are increasingly turning to Infrastructure as a Service (IaaS) solutions for their business needs. This is due to several factors, including the need for scalable and flexible IT infrastructure, cost savings, and the desire to focus on core business activities rather than managing IT infrastructure. Nigerian businesses are recognizing the benefits of IaaS, such as on-demand access to computing resources, pay-as-you-go pricing models, and the ability to quickly scale up or down based on business needs.

Trends in the market: One of the key trends in the IaaS market in Nigeria is the increasing adoption of cloud computing solutions by small and medium-sized enterprises (SMEs). SMEs in Nigeria are recognizing the advantages of IaaS, such as reduced upfront costs, improved operational efficiency, and access to advanced IT infrastructure that was previously only available to larger organizations. This trend is driving the growth of the IaaS market in Nigeria as more SMEs embrace cloud computing solutions to meet their business needs. Another trend in the market is the growing demand for data security and compliance. Nigerian businesses are becoming more aware of the importance of data security and are seeking IaaS providers that can guarantee the protection of their sensitive data. This trend is driving the development of advanced security features and compliance certifications in the IaaS market in Nigeria.

Local special circumstances: Nigeria has a rapidly growing technology sector, with a large pool of skilled IT professionals. This has created a favorable environment for the development of the IaaS market in the country. Additionally, the Nigerian government has been actively promoting the adoption of cloud computing solutions as part of its national digital transformation agenda. This has resulted in increased awareness and adoption of IaaS solutions among Nigerian businesses.

Underlying macroeconomic factors: The growth of the IaaS market in Nigeria can also be attributed to favorable macroeconomic factors. Nigeria has a large and growing economy, with a significant number of businesses looking to leverage technology to improve their operations and competitiveness. Additionally, the increasing availability and affordability of internet connectivity in the country has made it easier for businesses to adopt cloud computing solutions. In conclusion, the Infrastructure as a Service market in Nigeria is experiencing significant growth and development. This is driven by customer preferences for scalable and flexible IT infrastructure, the increasing adoption of cloud computing solutions by SMEs, the growing demand for data security and compliance, the favorable local circumstances including a growing technology sector and government support, and the underlying macroeconomic factors such as a large and growing economy and improved internet connectivity.

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.