Private Cloud is a model of cloud computing infrastructure which is focused on a single-user organization. The private cloud provides storage of data within the organization as well as offers third-party storage of critical data for remote access. Private Cloud also offers better control over the organization’s data and access control as compared to the public cloud due to lesser security challenges.
Market Insights & Analysis: The Middle East & Africa Private Cloud Services Market (2023-28):
The Middle East & Africa Private Cloud Services Market is estimated to grow at a CAGR of around 28.77% during the forecast period, i.e., (2023-28). The Middle East & Africa region has witnessed substantial digitalization, due to government initiatives, as a result, the reliance on cloud computing across various sectors increased such as; financial services, healthcare, education, e-commerce, etc. Moreover, these sectors demanded advanced customization and specialized applications to meet their unique requirements. Private cloud deployment offered these organizations the flexibility to host and manage industry-specific applications, aligning them seamlessly with their existing IT infrastructure.
|Study Period||Historical Data: 2018-21|
|Base Year: 2022|
|Forecast Period: 2023-28|
|Country Covered||The UAE, Saudi Arabia, Israel, Turkey, Egypt, South Africa, Rest of the Middle East & Africa|
|Key Companies Profiled||Amazon Web Services, Inc., Cisco Systems Inc., Dell Inc., IBM Corporation, SAP SE, VMware Inc., Microsoft Corporation, Hewlett Packard Enterprise, Databricks, OpenStack, Tencent Cloud, Others|
|Unit Denominations||USD Million/Billion|
The financial sector in the region handles sensitive data owing to which it requires robust data protection measures to ensure confidentiality. As a result, the financial sector has been adopting private cloud solutions for enhanced security features, such as data encryption, and access controls. Furthermore, many banking and financial sector entities in the region are optimizing their technology infrastructure within a hybrid multi-cloud strategy to drive cost efficiency, and increase productivity. For instance:
Owing to this, the adoption of private clouds has surged, as private clouds are incorporated into the hybrid systems to address unique compliance, security, and performance requirements. Additionally, cloud computing is becoming a vital enabler in advancing open banking, as a result, several hyper scalers such as Microsoft, Google, IBM, Bios Middle East, and Oracle’ announced their plans to expand in the region, especially in Saudi Arabia. These plans would make the private cloud easily available for financial institutions who are seeking to leverage cloud technologies, as private cloud deployment helps to mitigate certain risks associated with public cloud adoption, such as data breaches and service disruptions, which would spur market growth.
Moreover, various other factors such as large Foreign Direct Investment (FDI) and domestic investments by the governments have also played a major role in igniting the market growth, as the surge in investments has led to the expansion of businesses and industries. As the business expanded, the need for robust IT infrastructure has spurred which led to increased adoption of private cloud.
Additionally, countries such as the UAE, Saudi Arabia, South Africa, etc., are also focusing on improving the ease of doing business in the region to expedite the FDI as well as to support the growth of commercial businesses in the coming years. For instance,
Thus, with the upsurge in conducive government policies to support business activities in the region, the commercial business would thrive further, which would assist the growth of the Middle East & Africa Private Cloud Services Market during 2023-2028.
The Middle East & Africa Private Cloud Services Market Driver:
Growth of IT Industry to Promote Private Cloud Services Market - The countries in the region such as the UAE, South Africa, Saudi Arabia, etc., implemented strategies and initiatives to foster digital transformation and diversify their economies by promoting service-based sectors including IT. In line with this, the government of these countries substantially invested in innovation hubs, technology parks, etc., which created a conducive environment for the growth of the IT industry. Owing to this many companies such as Microsoft, IBM, Telekom, etc., expanded their existing operations in the region. For instance,
The IT industry's growth boosted the demand for scalable and flexible computing resources. Private clouds, with enhanced scalability, reliability, performance, and cost efficiency, have become the preferred IT infrastructure solution for business organizations in the region. Furthermore, the countries in the region such as South Africa, the UAE, etc., are taking many initiatives to become a fast adopter of emerging AI technologies. For instance,
Hence, the growth of AI technologies in the IT sector would have a positive impact on the demand for private cloud solutions, as AI applications would require significant computing power and storage to process large volumes of data and perform complex calculations.
The Middle East & Africa Private Cloud Services Market Opportunity:
Unveiling of Blockchain Initiatives to Open New Doors for the Market Players - Countries like the UAE, Saudi Arabia, Qatar, etc., have ambitious plans for digital transformation, which is outlined in their strategic development plans such as Saudi Vision 2030 initiative, Qatar Vision 2030, etc. These plans for digitalization include investment in cutting-edge technologies like Blockchain, metaverse, etc., as a result, countries in the region such as the UAE, Saudi Arabia, etc., are emerging as global Blockchain capital. In line with this, major companies and organizations in the Middle East investing in and embracing Blockchain technology initiatives in the region. For instance,
These initiatives and investments would create new opportunities for Private Cloud Services Market players to provide secure and scalable infrastructure to support the implementation and integration of blockchain solutions in these countries.
The Middle East & Africa Private Cloud Services Market Challenge:
Stringent Regulations Related to Private Cloud Services Market have Negative Effects on Growth - The countries in the Middle East region such as the UAE, Qatar, Saudi Arabia, etc., have various data protection and privacy regulations, which have been quite strict. Ensuring compliance with these regulations and implementing robust data security measures has been a challenge for organizations adopting & providing private cloud solutions. Hence, the stricter data protection laws and compliance requirements have posed additional complexities and costs for businesses in the region, which has significantly affected the growth of the Private Cloud Services Market.
In addition to these regulations, increased data breach cases as well as phishing activities prevalent in the region have also made enterprises susceptible to its usage. The cases of data breaches increased significantly as according to the Group-IB, the Middle East and Africa Business, at least 50 organizations were attacked by ransomware in 2021, which was an 85% increase from 2020. Thus, with the growing prevalence of cyber hacking activities and data security compliances, the market for private cloud has been experiencing a significant challenge, which is projected to remain same in the upcoming years as well.
The Middle East & Africa Private Cloud Services Market Trend:
Integration of Hybrid Cloud Model with Both Private & Public Cloud Creating New Trends - The adoption of hybrid cloud solutions has been gaining momentum in the MEA region, driven by the recognition of the benefits it offers, such as combining the scalability and cost-effectiveness of public clouds with the security and control of private clouds. This trend has been resulting in a shift in cloud deployment models, with more businesses opting for a hybrid approach to meet their specific IT requirements. For instance,
Hence, there has been increasing adoption of hybrid cloud, which has also been enhancing the demand for private cloud solutions in the region. Further, as more organizations would embrace hybrid cloud architectures, they would require robust and reliable private cloud services to complement their existing on-premises infrastructure. Thus, would contribute to the growth of the market in the upcoming years as well.
The Middle East & Africa Private Cloud Services Market (2023-28): Segmentation Analysis
The Middle East & Africa Private Cloud Services Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the regional, and national levels. Based on the analysis, the market has been further classified as:
Based on the Service Model:
The Software-as-a-Service (SaaS) category occupied a noteworthy share in the Middle East & Africa Private Cloud Services Market due to its increased adoption by educational institutions, healthcare industry, etc. Educational institutions across the region have leveraged SaaS-based learning management systems (LMS), student information systems (SIS), and virtual classroom platforms to enhance online learning capabilities and improve administrative processes.
Similarly, hospitals, clinics, and healthcare providers across the countries like the UAE, Saudi Arabia, South Africa, etc., have adopted SaaS-based electronic medical records (EMR), practice management, and telemedicine applications to streamline operations, enhance patient care, and improve data security and privacy. Owing to this, increased adoption of Software as a Service (SaaS) many SaaS firms have announced their plans to enter the region. For instance,
Consequently, with the enhanced accessibility of SaaS solutions in the private cloud segment, they dominated the market over the historical years. Moreover, SaaS address specific security requirements of these sectors, providing data encryption, access controls, compliance with industry regulations, and protection against cyber threats. Owing to this, its adoption in the finance, retail, and healthcare sectors is expected to retain its growth in the upcoming years as well.
Based on Organization Size:
Large Size enterprises held a considerable share in the Middle East & Africa Private Cloud Services Market. The high volume of data generation and storage requirements in large enterprises, and industries such as BFSI, IT, government, etc., have focused on the adoption of private cloud to securely access the data remotely as well as reducing the likely chances of data theft. Moreover, financial institutions, IT, government, etc., have been holding a large volume of confidential data concerning users’ financial, personal, and biometric information, which further enhanced the requirement for a robust private cloud extensively in the Middle East & Africa region.
Furthermore, various countries in the region have initiated their plans to completely digitalize their businesses, which would further strengthen the need for a private cloud due to efficient storage, retrieval, and security-based solutions offered by it.
The Middle East & Africa Private Cloud Services Market (2023-28): Regional Analysis
Geographically, the Middle East & Africa Private Cloud Services Market Private Cloud Services Market expands across:
Saudi Arabia is anticipated to hold a sizeable market share in the Middle East & Africa Private Cloud Services Market in the coming years. The government’s plans to increase business activities across the country as well as rising FDI in the country has led to a sizeable expansion of the commercial sector. For instance, according to the General Authority of Statistics, the overall growth of non-oil sectors in Saudi Arabia increased by 5.5% on an annual basis in 2022. Hence, as the number of enterprises has increased across the country, the consumer base of the private cloud industry also expanded over the historical years.
In addition to this expansion, a large number of cloud service providers with improved security features have been entering the country to cater to this rising demand. For instance,
Hence, these expansions, along with the establishment of new businesses would further create a conducive environment for rising demand for private cloud in the country in the coming years.
The Middle East & Africa Private Cloud Industry Recent Development:
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Frequently Asked Questions
A. The Middle East & Africa Private Cloud Services Market would exhibit a CAGR of around 28.77% during 2023-2028.
A. The growth of it industry would be a key driver for the Middle East & Africa Private Cloud Services Market during 2023-2028.
A. Amazon Web Services, Inc., Cisco Systems Inc., Dell Inc., IBM Corporation, SAP SE, VMware Inc., Microsoft Corporation, Hewlett Packard Enterprise, Databricks, OpenStack, Tencent Cloud and others are some of the top players in the Middle East & Africa Private Cloud Services Market.
A. Software as a Service (SaaS) is the leading service model in the Middle East & Africa Private Cloud Services Market.
A. Saudi Arabia followed by the UAE is anticipated to present growth prospects in the Middle East & Africa Private Cloud Services Market during 2023-2028.
A. The integration of a hybrid cloud model with both private and public cloud would be a key trend in the Middle East & Africa Private Cloud Services Market.
A. The unveiling of new blockchain initiatives would be a potential opportunity for the Middle East & Africa Private Cloud Services Market through 2028.
A. Stringent regulations to establish private cloud infrastructure & data breaches would be a key restraining factor for The Middle East & Africa Private Cloud Services Market.
A. BFSI, IT & Telecom, Government Education & Healthcare, Retail, Manufacturing, etc., are the potential end-users in the Middle East & Africa Private Cloud Services Market.
Middle East & Africa Private Cloud Services Market Research Report (2023-2028) - Table of Contents