MEA Cloud Computing Market

[293 Pages Report] The MEA Cloud Computing Market size is expected to grow at a Compound Annual Growth Rate (CAGR) of 18.6 % during the forecast period, to reach USD  49.5 billion by 2028 from USD  21.1 billion in 2023. Cloud providers were offering advanced AI and machine learning services, making it easier for MEA organizations to leverage these technologies for insights and automation in various industries, including healthcare, finance, and manufacturing.

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MEA Cloud Computing Market Dynamics

Drivers: Growing Demand for Scalability and Flexibility

The increasing demand for scalability and flexibility in IT infrastructure is a key driver in the cloud computing market. Organizations across industries are leveraging cloud solutions to easily scale their computing resources up or down based on demand, optimizing costs and enhancing operational efficiency. This scalability also enables businesses to adapt quickly to changing market conditions, ensuring they can meet customer needs effectively. The MEA cloud computing market is driven by the increasing adoption of digital transformation initiatives across various industries in the region. Organizations are recognizing the need to modernize their IT infrastructure and leverage cloud services to enhance agility, scalability, and cost-efficiency.

Restraints: Security and Data Privacy Concerns

Security and data privacy concerns represent a significant restraint in the cloud computing market. Organizations worry about the safety of their sensitive data when migrating to the cloud, especially given the rising number of cyber threats and data breaches. Compliance with data protection regulations such as GDPR and HIPAA adds complexity and cost to cloud adoption, making it crucial for cloud service providers to continually enhance their security measures.

Opportunities: Integration of Emerging Technologies

The cloud computing market presents a significant opportunity in the integration of emerging technologies such as artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT). Cloud platforms provide the necessary infrastructure and tools for businesses to harness the potential of these technologies. By leveraging the cloud's computational power and scalability, organizations can process vast amounts of data, extract valuable insights, and automate processes. This integration enhances decision-making, enables the development of innovative products and services, and drives competitive advantage. As businesses recognize the transformative potential of AI, ML, and IoT, cloud providers that offer robust support for these technologies are well-positioned to capture a growing market share.

Challenges: Vendor Lock-In and Interoperability

Vendor lock-in and interoperability challenges represent formidable obstacles in the cloud computing landscape. Once an organization commits to a specific cloud service provider, migrating to another platform can be a complex and costly endeavor. This lock-in can limit an organization's flexibility and bargaining power, potentially leading to higher costs in the long run. Additionally, ensuring seamless integration and data portability across different cloud environments, including public, private, and hybrid clouds, is a complex task. To address this challenge, industry stakeholders must work towards standardization and the adoption of open-source technologies that promote interoperability. Organizations should also carefully evaluate their cloud strategies to minimize vendor lock-in risks and maintain the flexibility to adapt to changing business needs and technology trends.

MEA Cloud Computing Market Ecosystem

By IaaS ,Storage and warehouse segment to hold the largest market size during the forecast period

Storage and warehouse services in Infrastructure as a Service (IaaS) cloud computing refer to the scalable and on-demand provisioning of virtualized storage resources and data warehouses in the cloud. IaaS providers offer users the flexibility to store, manage, and retrieve data without the need to invest in physical hardware. These services encompass various storage options, such as block, object, and file storage, as well as data warehousing solutions designed for efficient data analysis and reporting.

By deployment mode , public cloud cloud segment to hold the largest market size during the forecast period

A public cloud in the context of cloud computing refers to a shared IT infrastructure and computing resources provided by a third-party cloud service provider. These resources are accessible to the general public or a wide range of customers via the internet. Public clouds offer advantages such as scalability, flexibility, and cost-efficiency, as they enable organizations to access and pay for computing services as needed, eliminating the need for them to own and manage physical infrastructure. Users can deploy, operate, and oversee applications, storage, and other IT assets within a highly scalable and virtualized environment. This makes public clouds a popular choice for businesses aiming to harness cloud technology for tasks like hosting websites and applications or managing data storage and analysis.

Middle East to grow at the highest CAGR during the forecast period

The Middle East has been experiencing significant growth in the field of cloud computing in recent years. This growth can be attributed to various factors, including increased adoption of digital technologies, government initiatives to promote cloud adoption, and a growing startup ecosystem. Several countries in the Middle East have launched initiatives to promote cloud adoption. For example, the United Arab Emirates (UAE) launched the "UAE Cloud First Policy" to encourage government entities to prioritize cloud solutions. Similarly, Saudi Arabia has its "Cloud-First" strategy, aiming to accelerate the adoption of cloud services across government agencies. Major cloud service providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud have established data centers or availability zones in the Middle East region. These data centers improve the availability and latency of cloud services, making it more attractive for businesses in the region to migrate to the cloud. The Middle East, based on countries such as Saudi Arabia, UAE, Qatar, Israel, Turkey and other countries (Oman, Kuwait, and Bahrain).

MEA Cloud Computing Companies

The MEA cloud computing market is dominated by companies such as Microsoft (US), AWS (US), IBM (US), Google (US), Alibaba Cloud (China), Oracle (US), SAP (Germany), Salesforce (US), Etisalat (UAE), eHosting DataFort (UAE), Injazat Data Systems (UAE), STC Cloud (Saudi Arabia), Insomea Computer Solutions (Tunisia), CloudBox Tech (SA), Ooredoo (Qatar), Gulf business Machines (UAE), Intertec Systems (UAE), Fujitsu (Japan), Huawei (China), Comprehensive Computing Innovations (Lebanon), Compro (Turkey), Teraco Data Environment (SA), Liquid Intelligence Technologies (SA), Zonke Tech (SA), Cloud4Rain (Egypt), Infosys (India), TCS(India), Malomatia (Qatar), Cicso (US), and Orixcom (UAE). These vendors have a large customer base and strong geographic footprint along with organized distribution channels, which helps them to increase revenues.

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Scope of the Report

This research report categorizes the MEA cloud computing market to forecast revenue and analyze trends in each of the following submarkets:

Based on the Offering:

• Service Model
  • IaaS
  • PaaS
  • SaaS

Based on the IaaS application:

• Computation
• Storage and warehousing
• Recovery & backup
• Others

Based on the PaaS application:

• Data management  
• Application development & platforms
• Analytics and reporting
• Integration and orchestration
• Application testing and quality
• Others

Based on the SaaS application:

• Customer relationship management
• Enterprise resource management
• Human capital management
• Others content management
• Collaboration and productivity suites
• Supply chain management
• Others

Based on the Deployment Mode:

• Public Cloud
• Private Cloud
• Hybrid Cloud

Based on the vertical:

• BFSI
• Telecommunications
• IT and ITeS
• Government and Public Sector
• Retail and Consumer Goods
• Manufacturing
• Energy and Utilities
• Media and Entertainment
• Healthcare and Life Sciences
• Other Verticals

Based on regions:

• Middle East
  • Saudi Arabia
  • UAE
  • Qatar
  • Israel
  • Turkey
  • Rest of Middle East
• Africa
  • South Africa
  • Egypt
  • Egypt
  • Nigeria
  • Rest of Africa

Recent Developments

• In May 2023, Microsoft announced a suite of new AI solutions and enhancements to Microsoft Cloud for Nonprofit. These advancements are specifically crafted to revolutionize the nonprofit industry, redefining how fundraisers engage with donors, manage campaigns, and optimize operations.
• In May 2023,  SAP collaborated with IBM and announced that IBM Watson technology would be embedded into SAP solutions to offer new AI-driven insights and automation. It also helps to fuel innovation and create more efficient and effective user experiences across SAP solution portfolios.
• In September 2022,At Dreamforce, Salesforce introduced Salesforce Customer 360 to provide companies with powerful automation and intelligence technologies to drive efficient growth and deliver personalized customer experiences.
• In September 2022, IBM announced the general availability of IBM LinuxONE Bare Metal Servers. With this new solution, the LinuxONE platform may now be deployed in an off-premises Infrastructure as a Service (IaaS) model while enjoying all the advantages, including core consolidation, resultant software license savings, and decreased energy consumption to support sustainability goals.
• In September 2022,  A new feature from Google Cloud allows users to significantly reduce the cold start time of Cloud Run and Cloud Functions. This is named startup CPU boost for Cloud Run and Cloud Functions 2nd gen.

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