Public Cloud - MENA

MENA

Revenue in the Public Cloud market is projected to reach US$17.44bn in 2024.
Platform as a Service dominates the market with a projected market volume of US$5.40bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 18.57%, resulting in a market volume of US$40.87bn 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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Market

Region

Region comparison

Currency

Analyst Opinion

The MENA region's Public Cloud market is witnessing significant growth, driven by factors such as increasing adoption of digital technologies, growing awareness about cloud services, and the convenience offered by online solutions. The market's average growth rate is influenced by various sub-markets such as Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery as a Service. Factors like government initiatives, digital transformation, and increasing demand for cost-effective solutions are impacting this growth rate.

Customer preferences: There has been a noticeable increase in demand for public cloud services in the MENA region, driven by a growing preference for remote work and a need for cost-effective solutions. This trend is further accelerated by the region's large population of tech-savvy millennials, who are accustomed to using digital tools and services for their personal and professional needs. Additionally, the preference for self-service and on-demand access to data and applications has led to a rise in the adoption of public cloud solutions among businesses of all sizes.

Trends in the market: In the MENA region, the Public Cloud Market is experiencing a surge in demand due to the growing trend of digital transformation and the need for remote work solutions. This trend is expected to continue as more businesses and organizations embrace cloud-based technologies for increased efficiency and flexibility. Additionally, with the rise of e-commerce and online services, the Public Cloud Market is becoming increasingly crucial for companies to store and manage their data. This has significant implications for industry stakeholders, as it presents opportunities for growth and innovation in the region's technology sector. Furthermore, it also highlights the need for strong cybersecurity measures and data privacy regulations to protect sensitive information stored in the cloud.

Local special circumstances: In the MENA region, the Public Cloud market is experiencing significant growth due to the increasing adoption of cloud-based technologies by businesses and governments. This trend is fueled by the region's rapid digital transformation and the push for modernization in industries such as healthcare, finance, and education. The unique local factors that differentiate the MENA market include varying levels of internet penetration, cultural attitudes towards technology, and government regulations. These factors heavily influence the dynamics of the Public Cloud market in the MENA region, creating a unique landscape for cloud service providers to navigate.

Underlying macroeconomic factors: The Public Cloud Market in MENA is heavily influenced by macroeconomic factors such as economic stability, government policies, and investment in digital infrastructure. Countries with favorable economic conditions and supportive policies for digital transformation are experiencing significant growth in the market. In contrast, regions with economic challenges and limited investment in digital infrastructure are facing slower market growth. Moreover, the increasing adoption of cloud-based solutions by businesses and the growing demand for data storage and processing are driving the growth of the Public Cloud Market in the region.

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.