Public Cloud - Nigeria

Nigeria

Revenue in the Public Cloud market is projected to reach US$828.00m in 2024.
Infrastructure as a Service dominates the market with a projected market volume of US$288.90m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 27.38%, resulting in a market volume of US$2,777.00m by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$10.60 in 2024.
In global comparison, most revenue will be generated in the United States (US$388.50bn in 2024).

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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Market

Region

Region comparison

Currency

Analyst Opinion

The Public Cloud market in Nigeria is seeing moderate growth due to factors such as increasing demand for cloud-based services, rising awareness of digital transformation, and the convenience of accessing services online. This growth is primarily driven by the sub-markets of Infrastructure, Platform, Software, Business Process, and Desktop as a Service, which offer a range of options for organizations to streamline their operations and improve efficiency. However, the market growth is hindered by challenges such as limited internet infrastructure and data privacy concerns. Despite this, the market is expected to continue its mild growth in the coming years.

Customer preferences: The Public Cloud Market in Nigeria has seen a significant rise in demand for cloud-based solutions, driven by the need for remote work and collaboration tools. This trend is further amplified by the increasing adoption of digital technologies and the growing preference for flexible and scalable IT infrastructure. Additionally, with the rise of e-commerce and online services, there is a growing demand for secure and reliable cloud storage solutions to store and manage large amounts of data. This shift towards cloud-based solutions is also influenced by the need for cost-effective and efficient IT solutions, especially among small and medium-sized enterprises.

Trends in the market: In Nigeria, the public cloud market is experiencing a surge in demand due to the increasing adoption of digital transformation strategies by businesses. This trend is expected to continue as more companies recognize the benefits of moving to the cloud, such as cost savings, scalability, and improved efficiency. Additionally, the government's push for digitalization and the rise of fintech and e-commerce industries are also driving the growth of the public cloud market in Nigeria. These trends indicate a promising future for the cloud market in the country, with potential implications for industry stakeholders such as cloud service providers, businesses, and consumers.

Local special circumstances: In Nigeria, the Public Cloud Market is growing due to the increasing adoption of digital technologies across various industries. The country's large population and its status as a major business hub in Africa make it a prime market for public cloud services. Additionally, the Nigerian government has implemented initiatives to promote digital transformation, creating a favorable environment for the growth of the public cloud market. Furthermore, the country's diverse cultural landscape and unique regulatory environment play a crucial role in shaping the demand for public cloud services, making it a dynamic market to watch.

Underlying macroeconomic factors: The Public Cloud Market in Nigeria is heavily influenced by macroeconomic factors such as government policies, global economic trends, and national economic health. The country's recent push towards digital transformation and investment in ICT infrastructure has created an environment conducive for the growth of the public cloud market. Favorable government policies, such as tax incentives and initiatives to promote digitalization, have also contributed to the market's growth. Additionally, the increasing adoption of cloud-based solutions by businesses to improve operational efficiency and reduce costs has further fueled the market's expansion. However, challenges such as limited internet infrastructure and low technology adoption in certain sectors hinder the market's potential.

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.