Infrastructure as a Service - South Africa

  • South Africa
  • Revenue in the Infrastructure as a Service market is projected to reach US$0.99bn in 2024.
  • Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 18.87%, resulting in a market volume of US$2.35bn by 2029.
  • The average spend per employee in the Infrastructure as a Service market is projected to reach US$39.52 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

 
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Analyst Opinion

The Infrastructure as a Service market in South Africa has been experiencing significant growth in recent years, driven by customer preferences for flexible and scalable IT solutions, as well as local special circumstances and underlying macroeconomic factors. Customer preferences in South Africa are increasingly shifting towards Infrastructure as a Service (IaaS) solutions due to their numerous benefits. Businesses in the country are increasingly looking for IT solutions that are flexible and scalable, allowing them to easily adapt to changing business needs. IaaS offers the ability to quickly scale up or down computing resources based on demand, providing businesses with the agility they need to stay competitive in a rapidly changing market. Additionally, IaaS solutions eliminate the need for businesses to invest in and maintain their own physical infrastructure, reducing costs and freeing up resources for other business priorities. Trends in the IaaS market in South Africa are also being influenced by global and regional market developments. The increasing adoption of cloud computing and digital transformation initiatives worldwide has created a growing demand for IaaS solutions. As South African businesses look to modernize their IT infrastructure and leverage the benefits of cloud computing, the demand for IaaS services has surged. This trend is further fueled by the availability of reliable and high-speed internet connectivity in the country, which enables businesses to access and utilize IaaS solutions effectively. Local special circumstances in South Africa also contribute to the development of the IaaS market. The country has a large and growing population of small and medium-sized enterprises (SMEs) that are looking for cost-effective IT solutions. IaaS offers these businesses an affordable alternative to traditional IT infrastructure, allowing them to access enterprise-grade computing resources without the need for significant upfront investment. Additionally, South Africa has a vibrant startup ecosystem, with many entrepreneurs and innovators looking to leverage cloud-based technologies to launch and scale their businesses. The availability of IaaS solutions provides these startups with the necessary infrastructure to support their growth and success. Underlying macroeconomic factors in South Africa, such as the need for digital transformation, economic growth, and increasing internet penetration, are also driving the development of the IaaS market. The South African government has recognized the importance of technology and digital innovation in driving economic growth and job creation. As a result, there is a strong focus on promoting digital transformation initiatives and supporting the adoption of cloud computing and related technologies. This favorable environment, combined with the increasing internet penetration in the country, creates a conducive market for the growth of the IaaS sector. In conclusion, the Infrastructure as a Service market in South Africa is developing rapidly due to customer preferences for flexible and scalable IT solutions, global and regional market trends, local special circumstances, and underlying macroeconomic factors. As businesses in the country continue to embrace cloud computing and digital transformation, the demand for IaaS solutions is expected to grow further in the coming years.

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.

Overview

  • Revenue
  • Key Players
  • Analyst Opinion
  • Global Comparison
  • Methodology
  • Key Market Indicators
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