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.
The average spend per employee in the Public Cloud market is projected to reach US$88.75 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 MENA region's Public Cloud market is experiencing steady growth, driven by factors such as increasing adoption of cloud technologies, rising awareness of its benefits, and the convenience of accessing various services online. The market's average growth rate is influenced by factors such as the development of different sub-markets and the evolving needs of businesses and consumers.

Customer preferences: The MENA region has witnessed a significant increase in the adoption of public cloud services, driven by a growing preference for digital solutions to meet personal and professional needs. This includes the rising demand for online collaboration tools, remote work solutions, and cloud-based communication platforms. Additionally, there has been a shift towards cloud-based storage and data management solutions, as individuals and businesses seek scalability, flexibility, and cost-effectiveness. This trend is further fueled by the region's growing tech-savvy population and the increasing availability of high-speed internet.

Trends in the market: In the MENA region, the Public Cloud Market is experiencing an increase in demand for Software-as-a-Service (SaaS) and Infrastructure-as-a-Service (IaaS) solutions. This trend is being driven by the growing digital transformation efforts and the need for cost-effective and scalable cloud services. As the market continues to mature, there is a shift towards hybrid and multi-cloud environments, allowing organizations to leverage the benefits of both public and private clouds. This trend is significant as it offers flexibility and agility to businesses, allowing them to optimize their IT infrastructure and improve overall efficiency. However, it also poses challenges for industry stakeholders in terms of managing and securing data across multiple cloud platforms. As a result, there is a growing need for cloud management and security solutions in the region.

Local special circumstances: In the MENA region, the Public Cloud Market is experiencing significant growth due to the rise in internet penetration and the increasing adoption of digital transformation initiatives by governments and businesses. However, the market is also influenced by unique factors such as strict data privacy regulations and cultural preferences for local data storage and service providers. This has led to the emergence of regional cloud providers, catering to the specific needs and preferences of the local market. Additionally, the region's geography and diverse cultures have also influenced the demand for cloud services, with certain industries and regions showing higher adoption rates than others. This has resulted in a complex and fragmented market dynamic, with local players competing with global giants for market share.

Underlying macroeconomic factors: The Public Cloud Market in MENA is heavily influenced by macroeconomic factors, such as government initiatives to promote digital transformation, favorable regulatory environments, and increasing investments in IT infrastructure. Countries with strong government support for cloud adoption and a growing technology sector are experiencing significant growth in the market. Additionally, the rising demand for cost-effective and scalable IT solutions in the region is driving the adoption of public cloud services. Furthermore, the growing digitalization of businesses and the increasing use of data analytics and AI are also contributing to the growth of the Public Cloud Market in MENA.

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.