Cloud Market in Nigeria to Hit $828M

Nigeria’s public cloud industry is expanding at a modest pace and is expected to reach its $828 million market value in 2024.

Industry analysts claim that the achievement is impacted by elements including the convenience of online services, the rising need for digital solutions, and expanding knowledge of cloud computing.

Sub-markets including Infrastructure, Platform, and Software as a Service, along with Disaster Recovery and Desktop as a Service, are being driven by these.

The nation’s digital infrastructure and government programs encouraging digitalisation are other elements that affect the market’s growth.

By 2024, the public cloud market in Nigeria is expected to generate $828.00 million in sales. Revenue in Nigeria is anticipated to rise at a compound annual growth rate (CAGR 2024–2029) of 27.38%, reaching a market volume of $2,777.00m by 2029, according to Statista.

However, with a projected market volume of $278.10 million in 2024, Infrastructure as a Service (IaaS) has dominated the Nigerian industry.

Customer demand for cloud-based solutions has increased as Nigeria’s digital ecosystem continues to expand.

According to analysts, the trend is being driven by the need for safe data storage and accessibility, as well as a growing inclination for remote work and collaboration.

Public cloud use has also increased as a result of the nation’s growing internet penetration rate and the tech-savvy mindset of the younger generation.

As a result, IT infrastructures are becoming more adaptable and agile, providing companies with scalable and reasonably priced solutions.

According to a Statista analysis, “the growing adoption of digital transformation initiatives across all industries is driving a surge in demand for cloud-based solutions in Nigeria’s public cloud market.”

It is anticipated that businesses will continue to rely more on cloud services to meet their data storage and IT infrastructure requirements.

“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.”

Manomsi Mallum/Newtelegraphng