Public Cloud - Southern Africa

Southern Africa

In Southern Africa, revenue in the Public Cloud market is projected to reach US$3,900.00m in 2024.
Platform as a Service is expected to dominate the market in this region with a projected market volume of US$1,255.00m in 2024.
Revenue in Southern Africa is anticipated to show an annual growth rate (CAGR 2024-2029) of 17.34%, resulting in a market volume of US$8,675.00m by 2029.
In a global comparison, the majority of revenue will be generated the United States, which is expected to reach US$388.50bn in 2024.
The public cloud market in South Africa is experiencing significant growth as businesses increasingly adopt digital transformation strategies to enhance operational efficiency.

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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Analyst Opinion

The Public Cloud market in Southern Africa is experiencing considerable growth, driven by factors such as increasing adoption of digital technologies, rising awareness of cloud services among businesses, and the convenience offered by online cloud solutions. This growth is also influenced by the various sub-markets within the region, with Infrastructure as a Service, Platform as a Service, and Software as a Service being the major contributors. Additionally, the growth rate is impacted by factors such as government initiatives promoting digital transformation and the growing demand for cost-effective and scalable cloud solutions in the region.

Customer preferences: As the digital landscape continues to evolve in Southern Africa, consumers are increasingly valuing the convenience and accessibility of public cloud services. This trend is driven by the growing demand for remote work and collaboration solutions, as well as the need for reliable data storage and security. Furthermore, with the rise of e-commerce and online transactions, businesses and individuals are turning to public cloud services to streamline processes and ensure seamless operations.

Trends in the market: In Southern Africa, the Public Cloud Market is experiencing a rise in adoption of cloud-based services, driven by a growing demand for digital transformation and cost-effective IT solutions. This trend is expected to continue as businesses in the region prioritize agility and scalability in the wake of COVID-19. This shift towards cloud computing presents significant opportunities for industry stakeholders, such as cloud service providers and data center operators, who are investing in expanding their presence in the region. Additionally, the increasing availability of reliable and high-speed internet connectivity is enabling the growth of the public cloud market in Southern Africa.

Local special circumstances: In Southern Africa, the Public Cloud market is influenced by the region's unique regulatory landscape, as well as its growing tech-savvy population. With a high demand for digital solutions, the market is seeing a rise in local cloud service providers catering to the specific needs of the region. This is also driven by the region's increasing adoption of mobile technology, making cloud services accessible to a wider population. Additionally, the market is heavily influenced by the region's diverse cultural and linguistic landscape, requiring providers to offer localized services to effectively cater to the needs of different communities.

Underlying macroeconomic factors: The Public Cloud Market in Southern Africa is heavily influenced by macroeconomic factors such as economic growth, government policies, and investment in digital infrastructure. Countries with stable economic growth and supportive policies for digital transformation are experiencing a higher adoption rate of public cloud services. In contrast, countries with economic challenges and limited investment in digital infrastructure face slower market growth. The increasing need for cost-effective and scalable IT solutions in both the public and private sectors is driving the demand for public cloud services in the region. Furthermore, the shift towards remote work and digitalization due to the COVID-19 pandemic has also accelerated the uptake of public cloud services in Southern Africa.

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.