Infrastructure as a Service - United Arab Emirates

United Arab Emirates

Revenue in the Infrastructure as a Service market is projected to reach US$407.80m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 20.55%, resulting in a market volume of US$1,038.00m by 2029.
The average spend per employee in the Infrastructure as a Service market is projected to reach US$58.81 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 United Arab Emirates is experiencing significant growth and development.

Customer preferences: Customers in the United Arab Emirates are increasingly adopting Infrastructure as a Service (IaaS) solutions due to several reasons. Firstly, IaaS allows businesses to scale their IT infrastructure quickly and efficiently, which is particularly important in a fast-paced and dynamic market like the UAE. Secondly, IaaS provides businesses with the flexibility to pay for only the resources they need, enabling cost savings and improved budget management. Lastly, IaaS offers enhanced security features, ensuring that businesses can protect their critical data and infrastructure from cyber threats.

Trends in the market: One of the key trends in the IaaS market in the United Arab Emirates is the growing demand for cloud-native applications. As businesses in the UAE increasingly embrace digital transformation, there is a rising need for cloud-native applications that can leverage the scalability and agility of IaaS platforms. This trend is driven by the desire to improve operational efficiency, enhance customer experience, and enable innovation. Another trend in the market is the increasing adoption of hybrid cloud solutions. While public cloud services are gaining popularity, many businesses in the UAE still prefer to keep certain sensitive data and applications on-premises or in private clouds. Hybrid cloud solutions, which combine the benefits of both public and private clouds, provide businesses with the flexibility to choose the most suitable deployment model for their specific needs. This trend is driven by the need for data sovereignty, compliance requirements, and the desire to maintain control over critical infrastructure.

Local special circumstances: The United Arab Emirates has a rapidly growing digital economy and is positioning itself as a regional hub for technology and innovation. This has led to a high demand for advanced IT infrastructure and services, including IaaS solutions. The UAE government has also been actively promoting digital transformation and investing in initiatives to drive innovation and technology adoption across various sectors. These factors have created a favorable environment for the growth of the IaaS market in the country.

Underlying macroeconomic factors: The United Arab Emirates has a strong and diversified economy, with sectors such as finance, tourism, and logistics driving growth. This economic stability and diversification have contributed to the increased adoption of IaaS solutions by businesses in the country. Additionally, the UAE has a high rate of internet penetration and smartphone usage, which has created a conducive environment for the adoption of cloud-based services. The government's focus on developing a knowledge-based economy and attracting foreign investment has also played a significant role in driving the growth of the IaaS market in the country.

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.