Public Cloud - Kuwait

Kuwait

Revenue in the Public Cloud market in Kuwait is projected to reach US$201.40m in 2024.
Platform as a Service is set to dominate the market in Kuwait with a projected market volume of US$56.80m in 2024.
Revenue in this sector is expected to exhibit an annual growth rate (CAGR 2024-2029) of 16.27%, leading to a market volume of US$428.00m by 2029.
In a global context, the majority of revenue will be generated the United States, which is expected to reach US$388.50bn in 2024.
Kuwait's public cloud market is experiencing significant growth as businesses increasingly adopt digital transformation strategies to enhance operational efficiency and competitiveness.

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 Kuwait is experiencing steady growth, influenced by factors such as increasing demand for digital transformation, rising awareness of the benefits of cloud services, and the convenience of online solutions. The market's average growth rate is impacted by factors such as government initiatives to promote digitalization and the growing need for cost-effective and scalable IT solutions.

Customer preferences: The rise of remote work and virtual collaboration tools has accelerated the adoption of public cloud services in Kuwait. This trend is driven by a growing preference for flexible and scalable solutions that can support remote work arrangements. Additionally, as businesses in Kuwait become more digital, there is a greater need for cloud-based tools to support data storage, management, and analysis. This shift towards cloud-based solutions is also influenced by the increasing use of mobile devices and the desire for seamless access to data and applications from any location.

Trends in the market: In Kuwait, the Public Cloud Market is experiencing a surge in demand for Software as a Service (SaaS) solutions, as businesses look to streamline their operations and reduce costs. This trend is expected to continue as more companies embrace digital transformation and the need for remote work solutions. With the government's push towards digitalization and the rise of startups, the Public Cloud Market is expected to witness significant growth in the coming years. This presents opportunities for industry stakeholders to tap into this market and offer innovative solutions to meet the evolving needs of businesses in Kuwait.

Local special circumstances: In Kuwait, the Public Cloud Market is steadily growing due to the government's focus on digital transformation and the country's high internet penetration rate. Additionally, the strong presence of global tech companies in Kuwait, along with the cultural inclination towards digital solutions, has further accelerated the adoption of public cloud services. Furthermore, the country's regulatory framework, which allows for 100% foreign ownership in the ICT sector, has attracted international cloud service providers, leading to a highly competitive market.

Underlying macroeconomic factors: The Public Cloud Market in Kuwait is greatly impacted by macroeconomic factors such as the country's economic stability, government policies, and global economic trends. Kuwait's strong economic growth and favorable business environment have attracted numerous international cloud service providers to enter the market. Moreover, the government's initiatives to promote digital transformation and the adoption of cloud-based technologies in various sectors, such as oil and gas, healthcare, and education, have further boosted the demand for public cloud services in the country. Additionally, the increasing digitalization of businesses and the need for cost-effective and scalable IT solutions have also contributed to the growth of the public cloud market in Kuwait.

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.