Public Cloud - Tanzania

Tanzania

Revenue in the Public Cloud market in Tanzania is projected to reach US$206.10m in 2025.
Infrastructure as a Service is expected to dominate the market in Tanzania with a projected market volume of US$68.31m in 2025.
Revenue in Tanzania is anticipated to show an annual growth rate (CAGR 2025-2029) of 23.62%, resulting in a market volume of US$481.30m by 2029.
In global comparison, the majority of revenue will be generated the United States, totaling US$466.10bn in 2025.
Tanzania's public cloud market is rapidly evolving, driven by increasing digital transformation initiatives among local businesses and government agencies.

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 Tanzania is experiencing steady growth, driven by factors such as increasing adoption of digital technologies, rising awareness of the benefits of online services, and the convenience of using cloud-based solutions. This growth is also influenced by the sub-markets of Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery as a Service. The average growth rate of the market is impacted by various factors, including the country's infrastructure, economic conditions, and government policies promoting digital transformation.

Customer preferences: As the use of technology continues to grow in Tanzania, there is a noticeable trend towards the adoption of public cloud services. This can be attributed to the rising demand for flexible and cost-effective solutions, especially among small and medium-sized businesses. Additionally, the increasing use of mobile devices and the internet has led to a shift towards cloud-based applications and services, making it easier for individuals and organizations to access and store data.

Trends in the market: In Tanzania, there is a growing demand for cloud-based services, particularly in the public sector. This trend is driven by the government's efforts to modernize and digitize its operations. As a result, there has been an increase in the adoption of public cloud solutions by government agencies, leading to a rise in demand for infrastructure and platform services. This trend is expected to continue in the coming years, with significant investments being made in building the necessary infrastructure. This will have significant implications for industry stakeholders, as it presents new opportunities for cloud service providers to expand their market share and cater to the evolving needs of the government sector. It also highlights the need for specialized, localized solutions to meet the unique requirements of the Tanzanian market.

Local special circumstances: In Tanzania, the Public Cloud Market is seeing significant growth due to the country's rapidly expanding telecommunications infrastructure, which has increased internet access and adoption of digital technologies. Additionally, the government's push for digital transformation and the rise of e-commerce have further fueled the demand for cloud services. The unique geographical and cultural landscape, as well as regulatory policies promoting digitalization, have played a crucial role in shaping the market dynamics. This has also led to a rise in local cloud service providers, catering to the specific needs of Tanzanian businesses and consumers.

Underlying macroeconomic factors: The Public Cloud Market in Tanzania is heavily impacted by macroeconomic factors such as global economic trends, national economic health, and fiscal policies. The country's economic growth, inflation rates, and currency stability can significantly affect the demand for public cloud services. Furthermore, the government's investment in ICT infrastructure and policies supporting digital transformation play a crucial role in driving market growth. As Tanzania's economy continues to develop, the demand for cost-effective and scalable cloud solutions is expected to rise, especially in sectors such as finance, healthcare, and manufacturing.

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.