Infrastructure as a Service - Southern Africa

Southern Africa

Revenue in the Infrastructure as a Service market is projected to reach US$1.03bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 18.83%, resulting in a market volume of US$2.44bn by 2029.
The average spend per employee in the Infrastructure as a Service market is projected to reach US$35.54 in 2024.
In global comparison, most revenue will be generated in the United States (US$78,280.00m in 2024).

Key regions: United Kingdom, China, France, Netherlands, Germany

Market

Region

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Currency

Analyst Opinion

The Infrastructure as a Service market in Southern Africa is experiencing significant growth and development.

Customer preferences: Customers in Southern Africa are increasingly opting for Infrastructure as a Service (IaaS) solutions due to their flexibility, scalability, and cost-effectiveness. With IaaS, businesses can easily scale their infrastructure up or down based on their needs, allowing them to adapt to changing market conditions. Additionally, the pay-as-you-go pricing model of IaaS allows businesses to only pay for the resources they actually use, reducing costs and improving efficiency.

Trends in the market: One of the key trends in the IaaS market in Southern Africa is the adoption of cloud computing by small and medium-sized enterprises (SMEs). In the past, SMEs often faced challenges in accessing and managing IT infrastructure due to limited resources. However, with the availability of IaaS solutions, SMEs can now leverage the benefits of cloud computing without the need for significant upfront investments. This trend is driving the growth of the IaaS market in the region. Another trend in the market is the increasing demand for data storage and processing capabilities. With the growth of digital transformation initiatives and the increasing volume of data generated by businesses, there is a need for scalable and secure infrastructure to store and process this data. IaaS providers in Southern Africa are offering solutions that cater to these needs, providing businesses with the necessary infrastructure to manage and analyze their data effectively.

Local special circumstances: Southern Africa is a region with diverse economies and varying levels of technological development. While some countries in the region, such as South Africa, have well-established IT infrastructure and a mature market for cloud services, other countries are still in the early stages of adoption. This presents both opportunities and challenges for IaaS providers in the region. In countries with more developed IT infrastructure, there is a higher demand for advanced IaaS solutions that can support complex workloads and provide high levels of performance and reliability. On the other hand, in countries with less developed IT infrastructure, there is a need for more basic IaaS solutions that can help businesses overcome the challenges of limited resources and technical expertise.

Underlying macroeconomic factors: The growth of the IaaS market in Southern Africa is also influenced by underlying macroeconomic factors. The region has been experiencing economic growth in recent years, which has led to increased investment in technology and digital transformation initiatives. This, in turn, has driven the demand for IaaS solutions as businesses look to leverage cloud computing to improve their operational efficiency and competitiveness. Furthermore, the COVID-19 pandemic has accelerated the adoption of cloud services in Southern Africa. With remote work becoming the norm, businesses have had to quickly adapt their IT infrastructure to support remote collaboration and ensure business continuity. IaaS solutions have played a crucial role in enabling businesses to quickly scale their infrastructure to meet the new demands of remote work and ensure the availability of critical applications and services. In conclusion, the Infrastructure as a Service market in Southern Africa is experiencing significant growth and development driven by customer preferences for flexibility and cost-effectiveness, the adoption of cloud computing by SMEs, the increasing demand for data storage and processing capabilities, local special circumstances, and underlying macroeconomic factors such as economic growth and the impact of the COVID-19 pandemic.

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.