Platform as a Service - Africa

Africa

Revenue in the Platform as a Service market is projected to reach US$3.14bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 19.62%, resulting in a market volume of US$7.69bn by 2029.
The average spend per employee in the Platform as a Service market is projected to reach US$6.09 in 2024.
In global comparison, most revenue will be generated in the United States (US$91,020.00m in 2024).

Key regions: United States, Italy, Australia, Netherlands, Japan

Market

Region

Region comparison

Currency

Analyst Opinion

The Platform as a Service market in Africa is witnessing significant growth and development due to several key factors.

Customer preferences: Customers in Africa are increasingly adopting Platform as a Service (PaaS) solutions to drive their digital transformation initiatives. PaaS offers a range of benefits such as scalability, flexibility, and cost-effectiveness, which align with the preferences of African businesses. Additionally, PaaS allows organizations to focus on their core competencies while outsourcing the management and maintenance of the underlying infrastructure to service providers.

Trends in the market: One of the key trends in the PaaS market in Africa is the growing demand for cloud-native applications. African businesses are increasingly looking to develop and deploy applications that are designed specifically for cloud environments. This trend is driven by the need for agility and scalability, as well as the desire to leverage the benefits of cloud computing, such as reduced infrastructure costs and improved time-to-market. Another trend in the market is the rise of low-code and no-code development platforms. These platforms enable business users with little to no coding experience to build and deploy applications quickly and easily. In Africa, where there is a shortage of skilled software developers, low-code and no-code platforms are gaining popularity as they allow organizations to accelerate their application development processes.

Local special circumstances: Africa has a unique set of circumstances that contribute to the growth of the PaaS market. One of the key factors is the rapid expansion of mobile connectivity across the continent. With the increasing availability of affordable smartphones and internet access, African businesses are embracing mobile applications and services. PaaS solutions enable organizations to develop and deploy mobile applications quickly and efficiently, catering to the growing demand for mobile services in the region. Another special circumstance in Africa is the prevalence of small and medium-sized enterprises (SMEs). SMEs form a significant portion of the African business landscape, and they often have limited resources and technical expertise. PaaS solutions provide SMEs with an affordable and accessible way to leverage advanced technology and compete with larger enterprises. This has led to a surge in the adoption of PaaS among SMEs in Africa.

Underlying macroeconomic factors: The PaaS market in Africa is also influenced by macroeconomic factors. The continent has experienced sustained economic growth in recent years, which has led to increased investment in technology infrastructure and digital transformation initiatives. Governments and businesses across Africa are recognizing the importance of technology in driving economic development and are investing in initiatives to boost digital connectivity and innovation. This favorable economic environment is creating opportunities for PaaS providers to expand their presence in the African market. In conclusion, the Platform as a Service market in Africa is experiencing significant growth and development driven by customer preferences for cloud-native applications and low-code/no-code development platforms. The local special circumstances of mobile connectivity and the prevalence of SMEs further contribute to the adoption of PaaS solutions. Additionally, the favorable macroeconomic environment in Africa, characterized by sustained economic growth and increased investment in technology, is creating opportunities for PaaS providers to thrive in the region.

Methodology

Data coverage:

The data encompasses B2B and B2C enterprises. Figures are based on the money spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

The segment size is determined through a top-down approach. We use financial statements such as annual reports, quarterly earnings, and expert opinions to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP and level of telecommunications infrastructure.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the relevant segment. 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.