Software as a Service - Kenya

Kenya

Revenue in the Software as a Service market is projected to reach US$190.10m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 21.70%, resulting in a market volume of US$507.60m by 2029.
The average spend per employee in the Software as a Service market is projected to reach US$7.16 in 2024.
In global comparison, most revenue will be generated in the United States (US$190.10bn in 2024).

Key regions: Japan, United Kingdom, United States, Italy, Germany

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Analyst Opinion

The Software as a Service market in the Public Cloud Market in Kenya is experiencing modest growth due to factors like increasing adoption of digital technologies and rising demand for online services. This growth is impacted by factors such as limited internet access and slow adoption of technology in certain industries.

Customer preferences: As the public cloud market continues to grow in Kenya, there has been a notable shift towards Software as a Service (SaaS) solutions. With the rise of remote work and online collaboration, businesses and organizations are seeking cloud-based tools for efficient and flexible operations. This trend is further fueled by the increasing availability of reliable internet connectivity and a tech-savvy workforce. Additionally, the convenience and cost-effectiveness of SaaS models are appealing to budget-conscious consumers.

Trends in the market: In Kenya, the Software as a Service Market within the Public Cloud Market is experiencing a surge in demand as more businesses and organizations shift towards cloud-based solutions for their software needs. This trend is driven by the increasing availability and affordability of high-speed internet, as well as the need for remote work capabilities during the COVID-19 pandemic. It is expected that this trend will continue to grow in the coming years, with significant implications for industry stakeholders. As more businesses adopt SaaS solutions, there will be a shift towards subscription-based models, leading to a steady revenue stream for SaaS providers. This, in turn, will drive innovation and competition in the market, resulting in better and more affordable solutions for customers. Additionally, the shift towards cloud-based solutions will also lead to increased data security and flexibility for businesses, as well as improved productivity and cost savings.

Local special circumstances: In Kenya, the Software as a Service Market within the Public Cloud Market is experiencing significant growth due to the country's rapid digital transformation. With a large and tech-savvy youth population, there is a high demand for cloud-based solutions, especially in the education and healthcare sectors. Additionally, the government's focus on creating a supportive environment for startups and promoting innovation is fueling the market's expansion. However, limited internet connectivity and infrastructure in remote areas pose challenges for widespread adoption.

Underlying macroeconomic factors: The Software as a Service Market within the Public Cloud Market in Kenya is affected by macroeconomic factors such as economic stability, government policies, and technological advancements. With a stable economy and supportive government policies, there is a growing demand for cloud-based solutions, leading to market growth. However, limited access to reliable internet services and high data costs may hinder market growth. Additionally, the increasing adoption of digitalization in various sectors, such as education and healthcare, is driving the demand for Software as a Service solutions, further contributing to market growth.

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.