Market Forecast By Service Model (Infrastructure as a Service, Platform as a Service, Software as a Service), By Infrastructure as a Service (Primary Storage, Disaster Recovery and Backup, Archiving, Computer), By Platform as a Service (Application Development and Platforms, Application Testing and Quality, Analytics and Reporting, Integration and Orchestration, Data Management), By Software as a Service (Customer Relationship Management, Enterprise Resource Management, Human Capital Management, Content Management, Collaboration and Productivity Suites, Supply Chain Management, Others), By Organization Size (Large Enterprises, SMEs), By Deployment Model (Public Cloud, Private Cloud), By Verticals (BFSI, Telecommunication, IT & ITeS, Government & Public Sector, Retail & Consumer Goods, Manufacturing, Energy & Utility, Media & Entertainment) And Competitive Landscape
Product Code: ETC4427929 | Publication Date: Jul 2023 | Updated Date: Jan 2025 | Product Type: Report | |
Publisher: 6Wresearch | No. of Pages: 200 | No. of Figures: 90 | No. of Tables: 300 | |
Report Name | South Africa Cloud Computing Market |
Forecast period | 2025-2031 |
CAGR | 14.7% |
Growing Sector | BFSI |
The South Africa Cloud Computing Market report thoroughly covers the market By Service Model, By Infrastructure As a Service, By Platform As a Service, By Software As a Service, By Organization Size, By Deployment Model and By Verticals. The market report provides an unbiased and detailed analysis of the ongoing market trends, opportunities/high growth areas, and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.
The South Africa Cloud Computing market has been witnessing significant growth in recent years and is expected to continue growing in the coming years. This can be attributed to the increasing adoption of cloud computing solutions by various businesses and organizations, along with advancements in technology and digital transformation efforts.
According to 6Wresearch, South Africa Cloud Computing Market size is projected to rise at a CAGR of 14.7% during 2025-2031. This growth can be attributed to several factors, including the rising demand for cost-effective and scalable IT solutions, increasing internet penetration, and government initiatives towards digitalization. The growing trend of remote working and virtual collaboration has also contributed to the growth of the cloud computing market in South Africa, as it allows businesses to operate efficiently and securely from remote locations.
Additionally, the need for data storage and management solutions has increased with the growing volume of data generated by organizations, further driving the demand for cloud computing services. Further, while the market is expected to experience significant growth, there are also some challenges that might hinder its progress. One of the major challenges faced by the South Africa Cloud Computing Market is limited internet infrastructure and connectivity in some regions, which can impact the adoption of cloud-based solutions for businesses. Additionally, concerns about data security and privacy continue to be a barrier for some organizations when considering cloud computing services.
The South Africa cloud computing market is highly competitive, with a few dominant players and many emerging startups. Some of the leading players in the market are Microsoft Corporation, IBM Corporation, and Google LLC. These companies offer a range of cloud computing services such as Software-as-a-Service (Saas), Platform-as-a-Service (Paas), and Infrastructure-as-a-Service (Iaas). Other key players in the market include Amazon Web Services, Oracle Corporation, and SAP SE. These players have a significant presence in the country and have been investing heavily in expanding their cloud infrastructure and services to meet the growing demand.
The government in South Africa has been actively promoting the growth of the cloud computing industry in the country through various initiatives. One such initiative is the National Cloud Computing Strategy, which aims to establish South Africa as a leading hub for cloud computing services in Africa. The government has also implemented policies and regulations to support the adoption of cloud computing, such as data protection laws and cybersecurity protocols. Additionally, the government has launched programs to provide training and skills development for the local workforce in cloud computing technologies, further boosting the industry's growth. These initiatives have created a favorable environment for cloud service providers to operate in South Africa and have attracted foreign investments as well.
The future of the South African Cloud Computing Market looks promising, with significant growth potential. Furthermore, the growing trend of data analytics and big data applications is also expected to drive market growth. With more businesses shifting towards cloud-based solutions, there will be a higher demand for Infrastructure-as-a-Service (Iaas) and Software-as-a-Service (Saas) offerings. The market is also expected to witness advancements in cloud security solutions, addressing the growing concerns of data privacy and cybersecurity. Additionally, the increasing investments by major players in expanding their cloud infrastructure and services in South Africa will further fuel market growth in the coming years.
According to Ravi Bhandari, Research Head, 6Wresearch, Software as a Service (Saas) is the most popular service model in South Africa's cloud computing market. This can be attributed to factors such as cost-effectiveness, flexibility, and ease of implementation. Saas allows businesses to access and use software applications over the internet without having to invest in expensive infrastructure or hardware. This makes it an attractive option for small and medium enterprises (SMEs) who may not have the resources to set up their own in-house IT systems.
In terms of Infrastructure as a Service (Iaas) segment, the primary storage sector is currently leading in South Africa's cloud computing market. This can be attributed to the increasing demand for storage solutions due to the growing volume of data being generated by businesses. With Iaas, companies can store their data on a virtual server on the cloud, eliminating the need for physical storage devices and reducing costs.
The Application Development and Platforms sector is currently the most used in South Africa's Platform as a Service (Paas) segment. This is due to the increasing demand for customized software solutions by businesses in various industries. With Paas, companies can develop and deploy their own applications on the cloud without having to manage the underlying infrastructure.
The BFSI (Banking, Financial Services and Insurance) sector is currently leading in cloud adoption in South Africa. This can be attributed to the industry's focus on digital transformation and the need for secure data storage and management. Other leading industries include telecommunications, IT & ITeS, and government & public sector, all of which require efficient and scalable IT solutions to support their operations.
The report offers a comprehensive study of the subsequent market segments:
1 Executive Summary |
2 Introduction |
2.1 Key Highlights of the Report |
2.2 Report Description |
2.3 Market Scope & Segmentation |
2.4 Research Methodology |
2.5 Assumptions |
3 South Africa Cloud Computing Market Overview |
3.1 South Africa Country Macro Economic Indicators |
3.2 South Africa Cloud Computing Market Revenues & Volume, 2021 & 2031F |
3.3 South Africa Cloud Computing Market - Industry Life Cycle |
3.4 South Africa Cloud Computing Market - Porter's Five Forces |
3.5 South Africa Cloud Computing Market Revenues & Volume Share, By Service Model, 2021 & 2031F |
3.6 South Africa Cloud Computing Market Revenues & Volume Share, By Infrastructure as a Service, 2021 & 2031F |
3.7 South Africa Cloud Computing Market Revenues & Volume Share, By Platform as a Service, 2021 & 2031F |
3.8 South Africa Cloud Computing Market Revenues & Volume Share, By Software as a Service, 2021 & 2031F |
3.9 South Africa Cloud Computing Market Revenues & Volume Share, By Organization Size, 2021 & 2031F |
3.10 South Africa Cloud Computing Market Revenues & Volume Share, By Deployment Model, 2021 & 2031F |
3.11 South Africa Cloud Computing Market Revenues & Volume Share, By Verticals, 2021 & 2031F |
4 South Africa Cloud Computing Market Dynamics |
4.1 Impact Analysis |
4.2 Market Drivers |
4.3 Market Restraints |
5 South Africa Cloud Computing Market Trends |
6 South Africa Cloud Computing Market, By Types |
6.1 South Africa Cloud Computing Market, By Service Model |
6.1.1 Overview and Analysis |
6.1.2 South Africa Cloud Computing Market Revenues & Volume, By Service Model, 2021 - 2031F |
6.1.3 South Africa Cloud Computing Market Revenues & Volume, By Infrastructure as a Service, 2021 - 2031F |
6.1.4 South Africa Cloud Computing Market Revenues & Volume, By Platform as a Service, 2021 - 2031F |
6.1.5 South Africa Cloud Computing Market Revenues & Volume, By Software as a Service, 2021 - 2031F |
6.2 South Africa Cloud Computing Market, By Infrastructure as a Service |
6.2.1 Overview and Analysis |
6.2.2 South Africa Cloud Computing Market Revenues & Volume, By Primary Storage, 2021 - 2031F |
6.2.3 South Africa Cloud Computing Market Revenues & Volume, By Disaster Recovery and Backup, 2021 - 2031F |
6.2.4 South Africa Cloud Computing Market Revenues & Volume, By Archiving, 2021 - 2031F |
6.2.5 South Africa Cloud Computing Market Revenues & Volume, By Computer, 2021 - 2031F |
6.3 South Africa Cloud Computing Market, By Platform as a Service |
6.3.1 Overview and Analysis |
6.3.2 South Africa Cloud Computing Market Revenues & Volume, By Application Development and Platforms, 2021 - 2031F |
6.3.3 South Africa Cloud Computing Market Revenues & Volume, By Application Testing and Quality, 2021 - 2031F |
6.3.4 South Africa Cloud Computing Market Revenues & Volume, By Analytics and Reporting, 2021 - 2031F |