MEA Cloud Infrastructure Services Market Analysis Report, By Deployment, By Organization, By Service And Segment Forecasts From 2018 To 2025

Industry Insights

The MEA cloud infrastructure services market size was accounted for USD 2.57 billion in 2017. It is expected to witness growth with 28.7% CAGR over the forecasted years, 2018 to 2025. This growth can be associated with rising awareness about the usage of cloud technology among several organizations across the globe. Moreover, the surging investments being made in the technology sector are projected to drive the demand for such services in the upcoming years.

The deployment of such cloud services is being undertaken by many organizations for rapid, cost-effective, and reliable business development. This deployment is also being undertaken by several SMEs for protecting their digital assets owing to features like ease of access as compared to the on-premise deployment and low-cost storage.

Several large organizations are focusing on their expansion across the Middle East on account of rapid digitalization and boosting economic growth. For example, the establishment of data centers across cities like Dubai and Abu Dhabi is being undertaken by the Microsoft Corporation. They are being established across this region to cater to the rising demand for cloud technology.         

The GDP of countries across MEA is largely dependent on the adoption of advanced technologies. This region is expected to have around 160 million technology users, contributing to around 3.8% of the overall GDP. Several countries like KSA and UAE are constantly engaged in reducing their oil industry dependency for economic growth. Thus, they are shifting their focus on technology and a knowledge-based economy.

These countries have started investing heavily in the implementation of digital technologies for digitalizing their economy. For example, ‘Smart Abu Dhabi’ and ‘Smart Dubai’ projects are being undertaken by governing authorities to enhance the private-public relationship across the technology sector. Such initiatives are anticipated to drive market growth for cloud-based infrastructure services in the upcoming years.

Service Insights

The Middle East and Africa cloud infrastructure services market can be segmented into PaaS (Platform as a Service), IaaS (Infrastructure as a Service), CDN/ADN (Content Delivery Network/ Application Delivery Network), DRaaS, Colocation and Managed Hosting on the basis of service. In 2017, the PaaS (Platform as a Service) segment held the largest share across the market. This growth can be associated with its features like reduced time for application development, easy deployment, high agility and scalability, and no need for IT expertise for their operation.

On the other hand, the DRaaS segment is projected to register the fastest growth with 31.9% CAGR during the forecasted years. This growth can be attributed to the rising awareness among large organizations and SMEs about its feature of providing security to various IT assets.

Organization Insights

In 2017, the organization segment of SMEs held a share of 24.8% across the overall market. This growth can be attributed to features like scalable services and infrastructure being offered by the sector of cloud computing. This sector also offers additional services like resource pooling, self-service on-demand, broad access to network, time and cost flexibility, and updates regarding consumption rate to the customers. Moreover, its feature of reducing operational costs is anticipated to drive market growth in the upcoming years.

Several functions like data recovery and security play a vital role across large organizations. Thus, such organizations prefer the usage of the private cloud owing to its secured and reliable services. Further, technologies like big data analytics are being used by the service providers for providing the best services to their companies. As these services help in optimizing and enhancing the business processes across SMEs and large organizations, their market is anticipated to boost during the forecasted years.

Deployment Insights

In 2017, the public cloud deployment segment held the largest share across the market and generated revenue of USD 1.65 Billion. This can be associated with its rising usage across the majority of the SMEs owing to their low-cost features. Moreover, the flexibility of providing payments as per the individual user is also anticipated to drive market growth in the upcoming years.

Several large organizations have started adopting the private cloud due to add-on features like extra security being provided for financial data and IT assets. On the other hand, the segment for hybrid cloud is anticipated to witness a 30.9% CAGR from 2018 to 2025. This growth can be attributed to its usage as both public and private cloud, as per the organizational needs.

Country Insights

In 2017, KSA (Kingdom of Saudi Arabia) held the largest share across the Middle East & Africa cloud infrastructure services market. This can be associated with the rising presence of several major players coupled with its fast development as compared to other countries across this country. Moreover, the ‘National Transformation Program’ being undertaken by the government to promote the digitalization of governmental procedures is anticipated to drive demand for such services in the upcoming years.

In 2017, United Arab Emirates also accounted for a significant share of 27% across the overall MEA regional market. This growth can be attributed to the presence of technologically advanced and developed cities like Abu Dhabi and Dubai coupled with a rising proportion of FDI (Foreign Direct Investment) to boost growth in the technology sector. Further, Qatar is focusing on digitalizing the governmental processes until 2020 to gain traction across the ICT industry.

COVID-19 Impact Insights

The outbreak of the COVID-19 virus has positively impacted the MEA cloud infrastructure services market. The need for ensuring social distancing norms and contactless information exchange has triggered the adoption of cloud-based infrastructure and platforms. Also, the emergence of concepts like remote working and online education across countries like Qatar, KSA, and UAE has further boosted the demand for such services. Since, majority of the key players operating across this market like Google, Inc., Microsoft Corporation, and AWS (Amazon Web Services) have set up their data centers in this region, the market is expected to register significant growth over the post-pandemic period.

MEA Cloud Infrastructure Services Market Share Insights

This market includes key players like Microsoft Corporation; AWS; IBM; Alibaba; Fujitsu; Oracle; Google, Inc.; STC Cloud; Batelco, and Cloud4c.In 2017, these players accounted for more than 65% share across the market. These players are also facing competition on account of the emergence of several local players.

But, due to data security and reliability provided by these prominent players, the majority of the large enterprises still prefer their services as compared to those offered by new players. The key players are engaged in developing several innovative services for customer engagement.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2015 to 2025 in each of the sub-segments. For the purpose of this study, Million Insights has segmented the MEA cloud infrastructure services market report based on service, deployment, organization, and country:

• Service Outlook (Revenue, USD Billion, 2015 - 2025)
    • PaaS
    • IaaS
    • CDN/AND
    • Managed Hosting
    • Colocation
    • DRaaS

• Deployment Outlook (Revenue, USD Billion, 2015 - 2025)
    • Public Cloud
    • Private Cloud
    • Hybrid Cloud

• Organization Outlook (Revenue, USD Billion, 2015 - 2025)
    • SME
    • Large Organization

• Country Outlook (Revenue, USD Billion, 2015 - 2025)
    • Kingdom of Saudi Arabia
    • United Arab Emirates
    • Qatar