Public Cloud - APAC

APAC

Revenue in the Public Cloud market is projected to reach US$138.60bn in 2024.
Infrastructure as a Service dominates the market with a projected market volume of US$51.78bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 20.02%, resulting in a market volume of US$345.10bn by 2029.
In global comparison, most revenue will be generated in the United States (US$388.50bn in 2024).

Key regions: United States, Germany, China, Japan, United Kingdom

Definition:

A public cloud is defined as the digital infrastructure and computing resources that are managed by a service provider. Examples of public cloud computing resources include virtual machines, storage, and services, all of which are available for purchase with flexible (e.g., pay as you go and subscription) business models. Such payment options make it possible for customers to access, scale, and utilize resources as needed. Public cloud solutions make it possible for users to save on IT costs, increase their efficiency, and take advantage of advanced technologies without having to invest in long-term IT solutions. Public cloud service providers own and maintain the physical infrastructure, hardware, and software. Users only need to pay for the computing resources that they require. The Public Cloud market refers to the companies that provide these cloud computing resources and services to individuals, businesses, and organizations.

Structure:

The Public Cloud market is structured into five markets based on the type of service models provided by the companies.

The Infrastructure as a Service (IaaS) market covers the resources and services related to the data center infrastructure.
The Platform as a Service (PaaS) market covers the resources and services related to the virtual environments used for software development.
The Software as a Service market (SaaS) market covers the resources and services related to software applications that can be accessed via a web browser.
The Business Process as a Service (BPaaS) market covers the resources and services related to the various business processes such as finance and accounting, human resources, customer service, and supply chain management, all delivered through the cloud.
The Desktop as a Service (DaaS) market covers the resources and services related to virtual desktop environments, which are accessible from any device with an internet connection.

Additional Information:

The public cloud market comprises revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players of the public cloud market include companies such as Amazon (Amazon web services), Microsoft (Azure), Google (Cloud), and IBM (Cloud).

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Analyst Opinion

The Public Cloud market in APAC is experiencing steady growth, driven by factors such as increasing adoption of cloud technologies, growing awareness of its benefits, and the convenience of online services. This average growth rate is impacted by factors such as competition, government regulations, and evolving customer needs.

Customer preferences: As digitalization continues to drive the APAC region, there has been a notable increase in demand for public cloud services. This trend is fueled by a growing preference for flexible and scalable solutions, as well as a desire for secure data storage and management. Additionally, the shift towards remote work and virtual collaboration has further accelerated the adoption of public cloud solutions, as businesses seek to optimize their operations and improve productivity.

Trends in the market: In APAC, the Public Cloud Market is experiencing a surge in adoption, with businesses shifting towards cloud-based solutions for increased efficiency and cost savings. This trend is expected to continue as more enterprises embrace remote work and digitization. Additionally, there is a growing demand for hybrid and multi-cloud environments, as organizations seek to optimize their cloud strategy and avoid vendor lock-in. This trend has significant implications for industry stakeholders, such as cloud providers and managed service providers, who will need to adapt and innovate to meet the evolving needs of their customers. Furthermore, this trend also highlights the importance of data security and compliance in the region, as organizations navigate the complexities of managing data across various cloud platforms.

Local special circumstances: In the APAC region, the Public Cloud Market is heavily influenced by the unique regulatory landscape and cultural preferences of each country. For example, in China, the market is dominated by domestic players due to government regulations and cultural trust in homegrown companies. In Japan, data privacy laws and cultural preferences for on-premises solutions have slowed the growth of public cloud adoption. In contrast, in Southeast Asia, the market is rapidly expanding due to the region's digital transformation and growing demand for cloud-based services.

Underlying macroeconomic factors: The public cloud market in APAC is heavily influenced by macroeconomic factors such as government support, technological advancements, and investment in digital infrastructure. Countries with strong government regulations and significant investment in digital technologies are experiencing rapid market growth compared to those with regulatory challenges and limited resources. The increasing adoption of cloud services by businesses and the growing demand for data storage and management are also contributing to the market's growth. Additionally, the region's economic stability and favorable business climate are attracting global cloud providers to invest in APAC, further driving market growth.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the money spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of telecommunications infrastructure. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.