The MEA cloud infrastructure services market size is anticipated to reach $18.07 billion by 2025, according to a new report by Grand View Research. The market is anticipated to register a CAGR of 28.7 % during the forecast period.
Increasing government investments towards digital transformation have fostered market growth. Moreover, growing awareness among small and medium enterprises regarding the advantages of cloud technology in business is anticipated to boost the market growth.
In 2017, Platform as a Service (PaaS) was the largest cloud infrastructure service, holding a 26.4% share in the market.
The service allows the development, execution, and management of cloud-based applications without the need to build or maintain infrastructure. The dependency of the PaaS market on cloud infrastructure, for implementation, is expected to benefit the IaaS market over the forecast period.
The demand for Disaster Recovery as a Service (DRaaS) segment is expected to register the highest CAGR of 31.9% owing to increased demand for data security and recovery.
Public cloud segment was found to be the largest deployment type for the cloud infrastructure services. The public cloud saves time and money which enables customers to deploy resources faster and economically.
Private cloud is anticipated to expand at the highest CAGR of 32.4% from 2018 to 2025. The private clouds are mostly preferred by large organizations, as it ensures better security for digital assets and user’s financial data.
The hybrid cloud combines the benefits of public cloud and private cloud. The hybrid arrangement facilitates ease of deployment like in the case of the public cloud and also ensures optimum data security like the private cloud deployment. Hence, medium-sized businesses are broadly preferring hybrid cloud deployment.
The Small and Medium Enterprises (SME) segment accounted for USD 0.26 billion in 2017. Cloud computing has emerged as the most reliable and economical option for SMEs.
Thus, the trend of moving from traditional on-premise deployment to cloud deployment has been observed among the SMEs. Large organizations have already deployed their businesses on the cloud. Thus, owing to its wide adoption, the segment is expected to witness moderate growth over the forecast period.
The government initiatives, such as ‘Smart Dubai’ and ‘Smart Abu Dhabi’, in UAE are anticipated to bring in huge investments for the cloud technology segment. Many organizations are willing to expand their business in MEA and are considering UAE as the most promising country for growth.
Qatar is expected to witness the highest CAGR of 32.8% from 2018 to 2025, in terms of market expansion. It is because of the commitment of the local government towards technological development by 2020.
Further key findings from the study suggest:
- The MEA cloud infrastructure services market is expected to register a CAGR of 28.7% from 2018 to 2025
- PaaS was the largest service segment with $0.68 billion in 2017.
- The SME segment accounted for more than 24% market share in 2017. Increasing awareness regarding cloud adoption is expected to boost the segment growth further
- The Qatar market is anticipated to grow at the highest CAGR of 32.8% from 2018 to 2025, owing to increased government effort towards technical development through digitization
- Key companies including Amazon Web Services, Inc.; Microsoft Corporation; Google, Inc.; and IBM Corporation led the MEA cloud infrastructure services market while accounting for the majority revenue share in 2017.
The full report is available here.