Public Cloud - Armenia

Armenia

In Armenia, revenue in the Public Cloud market is projected to reach US$146.10m in 2025.
Software as a Service is expected to dominate the market in Armenia with a projected market volume of US$58.85m in 2025.
The revenue in Armenia is anticipated to show an annual growth rate (CAGR 2025-2029) of 20.74%, leading to a market volume of US$310.50m by 2029.
In a global context, the majority of revenue will be generated the United States, with a figure of US$466.10bn in 2025.
Armenia's public cloud market is experiencing significant growth as businesses increasingly embrace digital transformation and seek scalable solutions for their operations.

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 Armenia is experiencing significant growth, driven by factors such as increasing adoption of digital technologies, growing awareness of the benefits of online services, and the convenience offered by various cloud solutions. This growth rate is considerable and is impacted by a strong demand for Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery as a Service.

Customer preferences: The increasing adoption of remote work and virtual learning due to the COVID-19 pandemic has accelerated the demand for public cloud services in Armenia. As a result, there has been a notable shift towards cloud-based collaboration tools and platforms, as well as a growing reliance on cloud infrastructure for data storage and management. This trend is driven by the need for flexible and scalable solutions that support remote work and facilitate seamless communication and collaboration among individuals and organizations.

Trends in the market: In Armenia, the Public Cloud Market is experiencing a surge in demand for cloud-based solutions, driven by the growing adoption of digital transformation initiatives by businesses. This trend is expected to continue as companies seek to optimize their operations and improve efficiency. Additionally, there is a rising trend towards hybrid and multi-cloud strategies, as organizations look to combine the benefits of different cloud platforms. This trajectory highlights the increasing importance of cloud computing in the Armenian market and presents opportunities for industry stakeholders to offer innovative solutions and services. However, it also poses potential challenges for legacy providers who may struggle to keep up with the evolving market demands. As such, it is crucial for stakeholders to stay abreast of these trends and adapt their strategies to remain competitive in the dynamic Public Cloud Market in Armenia.

Local special circumstances: In Armenia, the public cloud market is experiencing growth due to the country's small size and limited resources for traditional IT infrastructure. The government's focus on promoting digitalization and technology innovation has also contributed to the adoption of public cloud services. Additionally, the country's geographical location and proximity to Europe and the Middle East make it an attractive market for international cloud providers looking to expand their business. Furthermore, the cultural preference for cost-effectiveness and flexibility has also played a role in driving the demand for public cloud services in Armenia.

Underlying macroeconomic factors: The Public Cloud Market in Armenia is heavily influenced by macroeconomic factors such as the country's overall economic health, government policies, and global economic trends. As a developing country with a growing economy, Armenia has seen an increase in demand for cloud-based solutions as businesses and organizations seek to modernize their operations and increase efficiency. Additionally, the government's support for digital transformation and investments in technology infrastructure have also contributed to the growth of the Public Cloud Market in Armenia. However, challenges such as limited internet penetration and lack of skilled IT professionals could potentially hinder market growth. Nevertheless, the increasing adoption of cloud technologies in various industries and the country's strategic location as a gateway between Europe and Asia present opportunities for the Public Cloud Market in Armenia.

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.