Public Cloud - Kenya

Kenya

Revenue in the Public Cloud market is projected to reach US$849.40m in 2024.
Infrastructure as a Service dominates the market with a projected market volume of US$274.70m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 20.25%, resulting in a market volume of US$2,136.00m by 2029.
In global comparison, most revenue will be generated in the United States (US$388.50bn in 2024).

Key regions: United States, Germany, China, Japan, United Kingdom

Definition:

A public cloud is defined as the digital infrastructure and computing resources that are managed by a service provider. Examples of public cloud computing resources include virtual machines, storage, and services, all of which are available for purchase with flexible (e.g., pay as you go and subscription) business models. Such payment options make it possible for customers to access, scale, and utilize resources as needed. Public cloud solutions make it possible for users to save on IT costs, increase their efficiency, and take advantage of advanced technologies without having to invest in long-term IT solutions. Public cloud service providers own and maintain the physical infrastructure, hardware, and software. Users only need to pay for the computing resources that they require. The Public Cloud market refers to the companies that provide these cloud computing resources and services to individuals, businesses, and organizations.

Structure:

The Public Cloud market is structured into five markets based on the type of service models provided by the companies.

The Infrastructure as a Service (IaaS) market covers the resources and services related to the data center infrastructure.
The Platform as a Service (PaaS) market covers the resources and services related to the virtual environments used for software development.
The Software as a Service market (SaaS) market covers the resources and services related to software applications that can be accessed via a web browser.
The Business Process as a Service (BPaaS) market covers the resources and services related to the various business processes such as finance and accounting, human resources, customer service, and supply chain management, all delivered through the cloud.
The Desktop as a Service (DaaS) market covers the resources and services related to virtual desktop environments, which are accessible from any device with an internet connection.

Additional Information:

The public cloud 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 public cloud market include companies such as Amazon (Amazon web services), Microsoft (Azure), Google (Cloud), and IBM (Cloud).

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Analyst Opinion

The Public Cloud Market in Kenya is experiencing significant growth, driven by increasing adoption of digital technologies, growing awareness of the benefits of online services, and the convenience offered by cloud solutions. The market is expected to continue growing at an average rate due to factors such as the availability of multiple sub-markets and the increasing demand for disaster recovery services.

Customer preferences: As technology becomes more accessible and affordable in Kenya, consumers are increasingly turning to public cloud services for their data storage and computing needs. This trend is driven by the need for cost-effective and scalable solutions, particularly among small and medium-sized businesses. Additionally, the rise of remote work and online learning has further fueled the demand for public cloud services, as individuals and organizations seek flexible and collaborative solutions.

Trends in the market: In Kenya, there is a significant growth in the Public Cloud Market, with more businesses and organizations adopting cloud solutions to improve efficiency and reduce costs. This trend is expected to continue as the country's digital economy expands and more companies embrace remote work. Additionally, there is a growing demand for cloud-based services in the education and healthcare sectors, with schools and hospitals turning to cloud solutions for improved data management and collaboration. These trends have significant implications for industry stakeholders, such as cloud service providers and IT companies, who will need to adapt to meet the changing needs of the market and capitalize on the growing demand for cloud services in Kenya.

Local special circumstances: In Kenya, the Public Cloud Market is experiencing significant growth due to the country's rapidly expanding digital infrastructure and government initiatives to promote digital transformation. Kenya's strong entrepreneurial culture and high adoption of mobile technology have also contributed to the market's success. Additionally, the country's favorable regulatory environment, with minimal restrictions on data storage and transfer, has attracted global cloud providers to establish a presence in Kenya. This has led to a competitive market with a wide range of offerings and pricing options, making it an attractive destination for businesses looking to adopt cloud solutions.

Underlying macroeconomic factors: The Public Cloud Market in Kenya is heavily impacted by macroeconomic factors such as technological advancements, government policies, and economic stability. The country's growing digital infrastructure and favorable regulatory environment have contributed to the rapid growth of the market. Additionally, the increasing adoption of cloud computing by businesses and the rising demand for cost-effective and scalable IT solutions are key drivers of market growth. Furthermore, the government's initiatives to promote digital transformation and investments in ICT infrastructure have also played a significant role in driving the expansion of the Public Cloud Market in Kenya.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the money spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of telecommunications infrastructure. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. 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.