The public cloud market in Nigeria is witnessing a moderate growth rate, tilting towards realising its projected 2024 market value of $828 million. According to industry analysts, the feat is influenced by factors such as the increasing demand for digital solutions, growing awareness of cloud technology, and the convenience of online services.
These are driving the adoption of sub-markets such as Infrastructure, Platform, and Software as a Service, as well as Disaster Recovery and Desktop as a Service. The market’s growth is also impacted by factors such as the country’s digital infrastructure and government initiatives promoting digitalisation.
In Nigeria, revenue in the public cloud market is projected to reach $828.00 million in 2024. According to Statista, revenue in Nigeria is expected to show an annual growth rate (CAGR 2024- 2029) of 27.38 per cent, resulting in a market volume of $2,777.00m by 2029.
However, Infrastructure as a Service (IaaS) has dominated the market in Nigeria with a projected market volume of $278.10 million in 2024. As the digital landscape continues to grow in Nigeria, there has been a noticeable increase in consumer demand for cloudbased solutions. Analysts noted that the trend is driven by a growing preference for remote work and collaboration, as well as a need for secure data storage and accessibility.
Moreover, the younger generation’s tech-savvy mindset and the country’s increasing internet penetration rate have also contributed to the rise of public cloud adoption. This has led to a shift towards more flexible and agile IT infrastructures, offering businesses cost-effective and scalable solutions.
A report by Statistia stated: “In Nigeria, the public cloud market is experiencing a surge in demand for cloud-based solutions, driven by the increasing adoption of digital transformation initiatives across all industries. This trend is expected to continue, with organisations relying more on cloud services for their IT infrastructure and data storage needs.
“This shift towards the cloud has significant implications for industry stakeholders, as it not only enables cost savings and scalability but also opens up opportunities for new business models and services. “Furthermore, the rise of public cloud adoption in Nigeria is also creating a competitive landscape for cloud service providers, with players like Amazon Web Services, Microsoft Azure, and Google Cloud expanding their presence in the country.
This trend is likely to accelerate the development of the public cloud market in Nigeria, making it a key market for cloud providers in the coming years. “In Nigeria, the public cloud market is gaining traction due to the country’s large population and growing digital economy. With a fast-growing tech sector and a rising number of internet users, there is a growing demand for cloud services among businesses and individuals.
“Additionally, the government has implemented policies to promote digital transformation, further driving the adoption of public cloud solutions. However, challenges such as unreliable internet infrastructure and data privacy concerns remain significant barriers to market growth.”
The platform noted further that the trend was also caused by some underlying macroeconomic factors. “The public cloud market in Nigeria is greatly impacted by macroeconomic factors such as the country’s overall economic health, government policies, and global economic trends.
With a growing economy and increasing government investment in technology, the demand for public cloud services is expected to rise. “Furthermore, the rise of remote work and e-commerce due to COVID-19 has also contributed to the growth of the market.
However, challenges such as inconsistent power supply and limited internet infrastructure could hinder market growth. Overall, the market is expected to continue growing as the country’s economy strengthens and more businesses adopt cloud-based solutions for their operations,” the report said. Meanwhile, the Director General and CEO of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, said Nigeria needed more investment to ensure its leadership in cloud ecosystem.
While speaking at a forum in Lagos recently, Inuwa, said the project by Statista “reminds us of the immense potential that cloud computing modes of our great nation, Nigeria, it is not merely a technological advancement, but a catalyst for change that can empower businesses, enhance government services, improve quality of life for all Nigerians.
It also offers us the ability to still rapidly innovate continuously, and compete globally. “However, as we embrace this technology, it is important that we have conversations around aligning our digital strategies to local interest, building robust infrastructure that reflects Nigeria’s unique needs, aspirations amongst other things, indeed, that we advocate for digital sovereignty.
This is because ensuring the ownership control and security of our digital resources is not just a technological imprint. “It is a matter of national importance and fundamental to building a resilient digital economy driven by the robust legal routine that drives indigenous technology as Nigeria has huge potential for cloud infrastructure.
“We are strategically limited in West, Central Africa with a large kilometers this far, with support from the company with convenience in rapidly expanding digital economy, thus making us a favourable destination for infrastructure investment.
Please follow and like us:
