Middle East public cloud market is expected to remain sturdy: Poised to reach USD 9,965.0 Million by 2027
Published | 03 June 2021
A study
recently conducted by the strategic consulting and market research firm BlueWeave Consulting revealed
that the Middle East public cloud market reached USD 2,660.0 million in 2020.
The market is further expected to reach USD 9,965.0 million by 2027 and is projected
to grow at a CAGR of 20.7% during 2021-2027 (forecast period). The growth of
the Middle
East public cloud market has been positively impacted by the exponential
rate of IT spending for cloud computing in the Middle East. Additionally, the
rising adoption of technologies like the internet of things (IoT), edge computing, 5G,
real-time analytics enabled by AI, and ML have also
contributed to the growth of the Middle East public cloud market.
Increasing
penetration of cloud services among SMEs Driving
the Middle East Public Cloud Market
Cloud adoption among
SMEs in the Middle East has been boosted by government efforts such as Smart
Dubai, Smart Abu Dhabi, and Bahrain's Cloud First Policy of 2019. Cloud
investment is being driven by organizations' transformation to digital
business, with the cloud serving as a crucial enabler and platform for digital
technologies. It has had a favorable impact on the Middle East public cloud
market. The Middle East's collective economic goal of becoming more technology
and data-centric has been a key factor in the region's rapid adoption of the
public cloud. Additionally, SMEs in the Middle East have been concentrating on their
efforts to deploy cloud services that will allow them to perform faster
business analytics and artificial intelligence, both of which are important
growth drivers for the Middle East public cloud market.
Increasing demand for
AI and Machine Learning across Middle Eastern countries driving market growth
The growing demand
for technologies such as artificial intelligence (Al), big data, machine
learning (ML), Internet of Things (IoT), and others are expected to propel the
Middle East public cloud market. These technologies have enabled users in the
Middle East public cloud market to monitor, analyze, and visualize unprocessed
data seamlessly. By combining these developing technologies with cloud
solutions, businesses can improve their visualization capabilities while also
making complex data more accessible. Since public cloud services come equipped
with such technologies the enterprises have benefited from the adoption of Al
and ML technologies thereby contributing to the growth of the Middle East
public cloud market.
Middle East Public Cloud Market COVID Impact Analysis
Adoption of cloud computing is accelerating in
the Middle East, fueled by the pandemic, government spending on huge smart city
and public administration projects, and the availability of an expanding range
of data center and managed service options to support enterprise adoption of
emerging technology. Hyperscale and regional providers alike are rushing to
meet the demand for cloud services. Additionally, data centers from major
players including Microsoft, Amazon Web Services (AWS), Oracle, and IBM have also
sprouted up across the Middle East over the past few years, adding to the
existing cloud presence of Alibaba, SAP, and other regional providers.
As businesses in the Middle East embrace remote working, the onset of
the coronavirus pandemic has contributed to an acceleration of cloud adoption.
The COVID-19 pandemic and its economic consequences have expedited digital
transformation in the region, resulting in an extraordinary demand for
contactless services, cloud solutions, and collaborative apps. The outbreak
triggered a massive shift to remote work, increasing the usage of digital
communications technologies and emphasizing the essential role that cloud
technology may play in business continuity.
SMEs occupy the
largest share in the organization size segment of the Middle East public cloud
market
Based on organization
size, the Middle East public cloud market is segregated into large enterprises
and small and medium enterprises (SMEs). Among these, SMEs make up a major
portion of the private sector in the Middle East, particularly in nations with
extensive informal economies. For SMEs, public cloud computing has emerged as
the most reliable and cost-effective solution. As a result, SMEs in the Middle
East are increasingly migrating from traditional on-premise deployment to cloud
deployment. Large enterprises have already moved their operations to the cloud.
As a result of the widespread acceptance of cloud deployment, the segment is
expected to grow at a moderate rate over the projection period.
Middle East Public Cloud Market: Regional Insights
Based on region, the Middle East public cloud market has been segmented into
Cyprus, Syria, Israel, Iraq, Iran, Jordan, Egypt, Libya, Saudi Arabia, Kuwait,
Yemen, Oman, Bahrain, Qatar, United Arab Emirates and the rest of Middle East. Among
these, Saudi Arabia accounted for the largest share in the Middle East public
cloud market. The country is further projected to record a strong CAGR over the
forecast period owing to rising government plans for the public cloud services
in the region. Furthermore, the implementation of a cloud-first strategy has
fueled the country's digital transformation, encouraging the use of
cutting-edge technologies such as AI and Industry 4.0 technologies such as IoT,
among others.
Middle East Public
Cloud Market Competitive Landscape
The leading players in the Middle East public
cloud market are AWS Inc., IBM
Corporation, Microsoft Corporation, Google LLC, VMWare Inc., Oracle, Cisco
Systems Inc., Salesforce.com, Inc., Fujitsu Limited, CoreSite Realty
Corporation, Hewlett Packard Enterprise Company, Citrix Systems, Inc.,
Cloudflare, Inc., Rackspace Technology, Inc., Equinix Inc., and other prominent
players. The Middle East Public Cloud
market is highly fragmented with many key players holding a good stake in the
market. The companies are also looking forward to investing in mergers and
acquisitions for cutting the competition and increase their market share in the
Middle East Public Cloud market.
In February 2021: Saudi Ground Service (SGS), selected Oracle Cloud Infrastructure (OCI)
to migrate its IT services locally, it will provide a rapid scale of
operations, capitalization on cost-effectiveness, and creating a future-ready
technology ecosystem.
In May 2021: In the first half of 2022, Amazon Web Services, Inc. announced its
plan to open a data center in the UAE
(United Arab Emirates). With the new AWS (Middle East) region, it will now
consist of 3 Availability Zones and will become AWS’s second region in the
Middle East with the existing AWS Region in Bahrain. This initiative will give
customers more choice and flexibility to leverage advanced technologies from
the world’s leading cloud.
Don’t miss the business opportunity of the Middle East
public cloud market. Consult our analysts to gain crucial insights and
facilitate your business growth.
The in-depth analysis
of the report provides information about growth potential, upcoming trends, and
statistics of the Middle East public cloud market. It
also highlights the factors driving forecasts of total market size. The report promises
to provide recent technology trends of the Middle East public cloud market and
industry insights to help decision-makers make sound strategic decisions.
Furthermore, the report also analyses the growth drivers, challenges, and
competitive dynamics of the market.
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