Infrastructure as a Service - South Africa

Revenue in the Infrastructure as a Service market is projected to reach US$977.10m 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 18.81%, resulting in a market volume of US$2.31bn 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 South Africa is experiencing considerable growth in the Public Cloud market, driven by factors such as the increasing adoption of digital technologies, growing awareness of the importance of digital health, and the convenience of online health services. This growth rate is expected to be sustained due to the high demand for efficient and scalable IT infrastructure solutions in the country.

Customer preferences: As more businesses and organizations in South Africa adopt cloud computing, there is a growing demand for Infrastructure as a Service (IaaS) solutions. This is driven by the need for efficient and cost-effective ways to manage and store data, as well as the increasing popularity of remote work. Furthermore, the rise of digital transformation initiatives, such as smart city projects and e-government services, is fueling the adoption of IaaS solutions in the public cloud market. Additionally, the growing number of young, tech-savvy individuals in the country is contributing to the shift towards cloud-based infrastructure, as they are more comfortable with using digital tools and services.

Trends in the market: In South Africa, the Infrastructure as a Service (IaaS) market within the Public Cloud Market is experiencing a surge in demand due to the country's rapidly growing digital economy. This trend is driven by the increasing adoption of cloud-based solutions by businesses and government organizations, as well as the need for cost-effective and scalable IT infrastructure. Additionally, there is a growing trend towards hybrid cloud solutions, combining the benefits of both public and private cloud. This trajectory is significant for industry stakeholders as it presents opportunities for service providers to expand their offerings and cater to the evolving needs of the market. It also highlights the importance of investing in infrastructure and developing robust cloud strategies to remain competitive in this fast-growing sector.

Local special circumstances: In South Africa, the Infrastructure as a Service Market within the Public Cloud Market is experiencing significant growth due to the country's rapidly expanding digital landscape. With the government's push for digital transformation and the increasing adoption of cloud technologies among businesses, the market is expected to see a surge in demand. Additionally, the country's unique geographical and regulatory circumstances, such as a highly developed telecommunications infrastructure and favorable data protection laws, play a vital role in shaping the market dynamics. These factors make South Africa a highly attractive market for public cloud providers, driving competition and innovation in the Infrastructure as a Service sector.

Underlying macroeconomic factors: The Infrastructure as a Service Market within the Public Cloud Market in South Africa is heavily influenced by macroeconomic factors such as technological advancements, government initiatives, and investment in digital infrastructure. With a rapidly growing digital economy and a supportive regulatory environment, South Africa is experiencing significant growth in the public cloud market. Furthermore, the country's strong fiscal policies and investments in digital infrastructure are driving the adoption of Infrastructure as a Service solutions, as businesses seek to improve efficiency and reduce operational costs. The increasing demand for digital services and the growing number of tech-savvy consumers are also contributing to the growth of the Infrastructure as a Service Market within the Public Cloud Market in South 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.