Public Cloud - Nigeria

Nigeria

In Nigeria, revenue in the Public Cloud market is projected to reach US$828.00m in 2024.
Infrastructure as a Service dominates the market in Nigeria with a projected market volume of US$278.10m in 2024.
Revenue in Nigeria is expected to show an annual growth rate (CAGR 2024-2029) of 27.38%, resulting in a market volume of US$2,777.00m by 2029.
In global comparison, most revenue will be generated the United States (US$388.50bn in 2024).
Nigeria's public cloud market is rapidly evolving, driven by increasing digital transformation initiatives and a growing demand for scalable IT infrastructure solutions.

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

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Analyst Opinion

The Public Cloud market in Nigeria is seeing a moderate growth rate, influenced by factors such as the increasing demand for digital solutions, growing awareness of cloud technology, and the convenience of online services. These are driving the adoption of sub-markets such as Infrastructure, Platform, and Software as a Service, as well as Disaster Recovery and Desktop as a Service. The market's growth is also impacted by factors such as the country's digital infrastructure and government initiatives promoting digitalization.

Customer preferences: As the digital landscape continues to grow in Nigeria, there has been a noticeable increase in consumer demand for cloud-based solutions. This trend is driven by a growing preference for remote work and collaboration, as well as a need for secure data storage and accessibility. Moreover, the younger generation's tech-savvy mindset and the country's increasing internet penetration rate have also contributed to the rise of public cloud adoption. This has led to a shift towards more flexible and agile IT infrastructures, offering businesses cost-effective and scalable solutions.

Trends in the market: In Nigeria, the Public Cloud market is experiencing a surge in demand for cloud-based solutions, driven by the increasing adoption of digital transformation initiatives across all industries. This trend is expected to continue, with organizations relying more on cloud services for their IT infrastructure and data storage needs. This shift towards the cloud has significant implications for industry stakeholders, as it not only enables cost savings and scalability but also opens up opportunities for new business models and services. Furthermore, the rise of public cloud adoption in Nigeria is also creating a competitive landscape for cloud service providers, with players like Amazon Web Services, Microsoft Azure, and Google Cloud expanding their presence in the country. This trend is likely to accelerate the development of the public cloud market in Nigeria, making it a key market for cloud providers in the coming years.

Local special circumstances: In Nigeria, the Public Cloud Market is gaining traction due to the country's large population and growing digital economy. With a fast-growing tech sector and a rising number of internet users, there is a growing demand for cloud services among businesses and individuals. Additionally, the government has implemented policies to promote digital transformation, further driving the adoption of public cloud solutions. However, challenges such as unreliable internet infrastructure and data privacy concerns remain significant barriers to market growth.

Underlying macroeconomic factors: The Public Cloud Market in Nigeria is greatly impacted by macroeconomic factors such as the country's overall economic health, government policies, and global economic trends. With a growing economy and increasing government investment in technology, the demand for public cloud services is expected to rise. Furthermore, the rise of remote work and e-commerce due to the COVID-19 pandemic has also contributed to the growth of the market. However, challenges such as inconsistent power supply and limited internet infrastructure could hinder market growth. Overall, the market is expected to continue growing as the country's economy strengthens and more businesses adopt cloud-based solutions for their operations.

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.