Public Cloud

Asia

Highlights

Revenue in the Public Cloud market is projected to reach US$137.80bn in 2024.
Infrastructure as a Service dominates the market with a projected market volume of US$52.64bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 20.04%, resulting in a market volume of US$343.30bn by 2029.
In global comparison, most revenue will be generated United States (US$388.50bn in 2024).

Key regions:

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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Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Public Cloud market in Asia is experiencing steady growth, driven by factors such as increasing adoption of digital technologies, growing awareness about the benefits of online services, and the convenience offered by cloud computing. The market's average growth rate is influenced by factors such as the rise of Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery as a Service. Overall, the market is expected to continue to expand due to the region's increasing demand for efficient and cost-effective cloud solutions.

Customer preferences: The rapid growth of e-commerce and increasing smartphone penetration have led to a rise in demand for cloud-based solutions for online shopping and payment services. Additionally, the shift towards remote work and virtual collaboration has boosted the adoption of public cloud services for efficient and seamless communication and productivity. This trend is expected to continue as businesses and individuals prioritize convenience and flexibility in their daily operations.

Trends in the market: In Asia, the Public Cloud market is seeing a surge in demand for hybrid cloud solutions, as businesses seek to balance cost savings with the need for data security and control. This trend is expected to continue as more organizations turn to cloud services for their data management needs. Additionally, there is a growing trend of using AI and machine learning in public cloud environments, enabling more efficient and accurate data analysis. These advancements have significant implications for industry stakeholders, as they provide opportunities for cost reduction and improved data management capabilities. However, there may also be challenges in ensuring data privacy and compliance with regulations in this rapidly evolving landscape.

Local special circumstances: In Asia, the Public Cloud Market is rapidly growing due to the region's increasing digitalization and government initiatives to promote cloud adoption. In China, the market is driven by the country's large population and the need for cost-effective and scalable cloud solutions. In Japan, the market is influenced by the country's strict data privacy regulations, leading to a high demand for secure and compliant cloud services. In Southeast Asia, the market is driven by the region's diverse cultural and linguistic landscape, requiring cloud providers to offer localized solutions to cater to each market's unique needs.

Underlying macroeconomic factors: The adoption of public cloud services in Asia is also influenced by macroeconomic factors such as technological advancements, government support, and investment in digital infrastructure. Countries with favorable regulatory environments and strong investment in cloud technologies are experiencing faster market growth compared to regions with regulatory challenges and limited digital infrastructure. Additionally, the increasing demand for cost-effective and scalable solutions, as well as the growth of digital transformation initiatives across industries, are driving the adoption of public cloud services in Asia.

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.