Middle East public cloud market is expected to remain sturdy: Poised to reach USD 9,965.0 Million by 2027
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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 centre 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 centres 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.
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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, capitalise on cost-effectiveness, and create 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 centre in the UAE (United Arab Emirates). The new AWS (Middle East) region, 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.
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 in 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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