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$279.10m 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.
The average spend per employee in the Public Cloud market is projected to reach US$31.97 in 2024.
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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Market

Region

Region comparison

Currency

Analyst Opinion

The Public Cloud Market in Kenya is experiencing significant growth, driven by factors such as increasing adoption of digital technologies, rising awareness of the benefits of cloud services, and the convenience offered by online solutions. The market's average growth rate is impacted by factors such as the country's infrastructure, government regulations, and the availability of skilled professionals. These factors are influencing the adoption of different sub-markets, leading to the overall growth of the Public Cloud Market in Kenya.

Customer preferences: As technology becomes more accessible and internet penetration increases, consumers in Kenya are increasingly turning to public cloud solutions for their data storage and management needs. This trend is driven by the desire for convenience and cost-effectiveness, as well as the need for reliable and secure data storage. With the rise of remote work and digital collaboration, businesses and individuals alike are adopting public cloud services to streamline their operations and improve efficiency. This shift towards cloud-based solutions is expected to continue as Kenya's digital landscape continues to evolve.

Trends in the market: In Kenya, the Public Cloud Market is experiencing a surge in demand for cloud-based services, driven by the increasing adoption of digital technologies and the need for cost-effective solutions. This trend is expected to continue, with the government promoting digital transformation and businesses shifting towards cloud-based operations. Additionally, the rise of e-commerce and online services is fueling the demand for cloud infrastructure, with more companies needing scalable and secure platforms to support their online operations. These trends indicate a significant shift towards a more digital and connected economy in Kenya, creating opportunities for cloud service providers and technology companies.

Local special circumstances: In Kenya, the Public Cloud Market is largely driven by the country's growing technology sector and the government's push for digital transformation. With a high rate of mobile phone and internet penetration, there is a strong demand for cloud-based services, particularly among small and medium-sized enterprises. Additionally, the country's supportive regulatory environment and growing entrepreneurial culture have contributed to the rapid growth of the Public Cloud Market, making it a unique and attractive market for cloud service providers.

Underlying macroeconomic factors: The Public Cloud Market in Kenya is greatly impacted by macroeconomic factors like technological advancements, government policies, and overall economic stability. Kenya's economy has been steadily growing, with a strong focus on digital transformation and investment in IT infrastructure. This has created a favorable environment for the adoption of public cloud services, as businesses and organizations seek to streamline operations and reduce costs. Additionally, the country's tech-savvy population and growing demand for digital services have also contributed to the growth of the public cloud market. However, challenges such as limited internet penetration and inadequate data privacy regulations may hinder market growth in the long run.

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.