MENA Market Insights on Cloud Infrastructure: Insights and Forecast, 2018-2024: Emphasis on Deployment Type (Public Cloud, Private Cloud), Public Cloud Services (SaaS, PaaS, IaaS, Cloud Advertising, BPaaS), End User (Banking, Financial Services and I

SKU ID : UMI- 13099223

Publishing Date : 01-Sep-2018

No. of pages : 135


  • The development of cloud computing plays pivotal role in bringing innovation and development of digital economies. Despite the predicted growth of cloud infrastructure in Middle East region, it is still an emerging technology in MENA region. Cloud has significantly removed the burden of manually upgrading hardware and managing data storage and simultaneously provides the employees with the global means of communicating with customers and access to multiple cloud providers and key data from any location. It has been estimated that total cloud spend in Middle East and North Africa was accounted at more than US$ 1 Billion during 2017 and will value at US$ 2 Billion by 2020 owing to drastic growth of Platform as a Service and Software as a Service.
    Moreover, the growing and influential role of businesses towards embracing innovative technologies such as Big data analytics, cloud , digital business are significantly contributing to fuel digital transformation. It has been estimated that by 2020 IT spending towards Data center systems in Middle East region will value US$5 Billion. In addition, accelerating IT investments and burgeoning digitization and widespread access to internet and smartphone penetration are also contributing towards booming cloud market of MENA region. It has been anticipated that by 2020 mobile connections will rise to 69% and smartphone will account for 463 Million by 2020. Owing to this, Middle East and North Africa cloud infrastructure market is expected to reach US$ 87.4 Billion in 2024 from US$ 28.8 billion in 2017 at a considerable CAGR of 16.4% during the forecasted period (2018-2024). However, low penetration of cloud among small and medium enterprises and absence of legal standards continue to hamper the growth of Middle East and North Africa cloud infrastructure market.
    Middle East and North Africa Cloud Infrastructure market is segmented based on deployment, services, service type and industrial verticals. Deployment (public and private cloud), public cloud services (software as a service, platform as a service, infrastructure as a service, business process as a service and cloud advertising), private cloud service type (managed hosting and co-location) and industry verticals such as banking, financial services and insurance, retail, telecom and IT, healthcare, media and entertainment, government agencies, education, energy, manufacturing and other industry verticals are considered while analyzing and defining the penetration of cloud infrastructure services in different geographies and countries.
    In 2017, deployment segment dominated the Middle East and North Africa cloud infrastructure market with public cloud capturing maximum share in terms of revenue. Public cloud is further classified on the basis of SaaS, PaaS and IaaS. Owing to best economies of scale, enhanced scalability and wide adoption among SME’s due to its low cost, public cloud held 80% share in 2017. With fostering information technology, private cloud is also gaining traction. Since it offers similar benefits and entails same features as of public cloud, it is dedicated to single organization and aims to address the data security related concerns. Moreover, it also offers greater control which lags in public cloud. During 2017, cloud advertising held prominent share as it has drastically become the essential part of digital lives of many organizations. Moreover, with the remarkable growth of internet, SaaS is also anticipated to represent itself as one of the most adopted cloud services and account for 21% market share by 2024 attributed to scalability and substantial surge in adoption rate of cloud among small and medium enterprises.
    Managed Hosting and Co-location are the two service types that are widely used across cloud computing landscape. The former category forms as a multi-billion dollar market that is growing rapidly owing to enhanced security and ownership over the data offered to organizations and reduced investments on IT infrastructure. Managed Hosting segment is projected to account US$ 14.6 Billion by 2024 displaying a phenomenon CAGR of 17.1% over 2018-2024. Cloud computing services are widely used across all the industry verticals. Among several industrial sectors, telecom and IT segment held the highest market share of 17.44% during 2017 accredited to rapid development of mobile internet, Internet of Things and explosive growth in variety of access devices and end user demands. It has been projected that segment will register US$ 13.5 Billion by 2024 growing at reasonable CAGR of 7% during the forecasted period (2018-2024).
    Furthermore, considering the geographical penetration across different countries in the region, the United Arab Emirates accounted for prominent share in Middle East and North Africa cloud infrastructure market in 2017 and is expected to remain dominant during the forecast period. Rising adoption trend of cloud among various industry verticals, regional government accepting innovation and cloud being embraced by small and medium enterprises and various other factors have fostered the growth prospects of Middle East and North Africa cloud market. United Arab Emirates cloud infrastructure market was valued at US$ 4.9 Billion in 2017 and is anticipated to flourish to US$ 16.2 Billion by 2024 growing at an exponential CAGR of 17.5% during the forecast period.
    The major players in this industry are Cisco System, Equinix, Google Inc., IBM,, AT&T, DXC Tehnology, AWS (Amazon Web Services), HP and Rackspace Hosting Inc. With an objective to enhance their geographical presence, the major market players have entered into various acquisitions and collaborations which further offers them growth opportunities in cloud domain.