Public Cloud

South Africa

Highlights

Revenue in the Public Cloud market is projected to reach US$3.76bn in 2024.
Platform as a Service dominates the market with a projected market volume of US$1.22bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 17.25%, resulting in a market volume of US$8.34bn by 2029.
In global comparison, most revenue will be generated United States (US$388.50bn in 2024).

Key regions:

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 definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Public Cloud market in South Africa is experiencing significant growth, driven by factors such as increasing adoption of digital technologies, rising awareness of the benefits of cloud services, and the convenience of accessing them online. The market's considerable growth rate can be attributed to the wide range of services offered, including Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery as a Service.

Customer preferences: With the increasing adoption of remote work and online learning in South Africa, there has been a growing demand for reliable and secure cloud solutions. This has fueled the growth of the public cloud market as businesses and individuals seek cost-effective and flexible options for data storage, collaboration, and access to online tools and resources. Additionally, the rise of mobile and internet penetration in the country has led to a preference for cloud-based applications and services, further driving the growth of the public cloud market.

Trends in the market: In South Africa, the Public Cloud Market is experiencing a surge in demand for cloud-based services, particularly in the government and financial sectors. This trend is driven by the need for cost-effective and scalable solutions, as well as the growing adoption of digital transformation strategies. With the country's increasing internet penetration and investments in infrastructure, the trajectory of this trend is expected to continue upwards. This has significant implications for industry stakeholders, as it presents opportunities for growth and innovation in the market. Additionally, it highlights the importance of strong cybersecurity measures and reliable connectivity for successful adoption of public cloud services.

Local special circumstances: In South Africa, the Public Cloud Market is growing rapidly due to the country's strong ICT infrastructure and government initiatives to promote digitalization. Additionally, the market is influenced by the unique regulatory landscape, with the Protection of Personal Information Act (POPIA) and the Electronic Communications and Transactions Act (ECTA) shaping data privacy and security practices. This has led to the emergence of local cloud service providers catering to these specific requirements, driving competition and innovation in the market. Furthermore, the country's diverse cultural landscape has resulted in a demand for cloud solutions that cater to different languages and cultural preferences, creating opportunities for localized cloud services. These unique factors contribute to the dynamic and evolving nature of the Public Cloud Market in South Africa.

Underlying macroeconomic factors: The Public Cloud Market in South Africa is greatly impacted by macroeconomic factors, such as the country's economic health, global economic trends, fiscal policies, and other relevant financial indicators. A strong and stable economy, along with favorable government policies and investments in technology infrastructure, can drive the growth of the Public Cloud Market. On the other hand, economic downturns and unfavorable policies can hinder market growth. With the increasing digitization of businesses and the growing adoption of cloud-based solutions, the Public Cloud Market in South Africa is expected to experience significant growth in the coming years.

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.