Public Cloud - Australia & Oceania

Australia & Oceania

Revenue in the Public Cloud market in Australia & Oceania is projected to reach US$15.29bn in 2024.
Software as a Service is expected to dominate this market with a projected market volume of US$6.29bn in 2024.
Furthermore, revenue in Australia & Oceania is anticipated to show an annual growth rate (CAGR 2024-2029) of 18.55%, leading to a market volume of US$35.80bn by 2029.
In a global context, the majority of revenue will be generated the United States, where the figure is expected to reach US$388.50bn in 2024.
Australia's public cloud market is increasingly characterized by a growing demand for advanced data security solutions amid rising concerns over privacy regulations.

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 Australia & Oceania is experiencing mild growth, influenced by increasing adoption of digital technologies, growing awareness of the benefits of online services, and the convenience of cloud-based solutions such as Infrastructure as a Service, Platform as a Service, and Software as a Service. Factors such as Business Process as a Service, Desktop as a Service, and Disaster Recovery as a Service also contribute to the market's growth.

Customer preferences: As the use of cloud technology continues to grow in Australia & Oceania, consumers are increasingly looking for convenient and flexible solutions to meet their digital needs. This has led to a rise in demand for public cloud services, as individuals and businesses seek cost-effective and scalable options for data storage and management. Additionally, the shift towards remote work and digital collaboration has further accelerated the adoption of public cloud solutions, as organizations seek to improve efficiency and accessibility. This trend is expected to continue as the region's digital landscape evolves, highlighting the importance of reliable and secure public cloud services.

Trends in the market: In Australia & Oceania, the Public Cloud Market is experiencing a surge in demand for hybrid cloud solutions, with businesses seeking to balance cost-efficiency with scalability and flexibility. This trend is driven by the increasing adoption of cloud-based technologies, such as AI and IoT, which require a robust and agile infrastructure. As a result, there is a growing interest in multi-cloud strategies and managed services, highlighting the importance of partnerships and collaboration among industry players. This trajectory signifies the region's shift towards a more mature and sophisticated cloud market, presenting opportunities for providers to diversify their offerings and cater to evolving customer needs. However, it also raises concerns around data sovereignty and cybersecurity, prompting stakeholders to prioritize regulatory compliance and risk management.

Local special circumstances: In Australia and Oceania, the Public Cloud Market is experiencing rapid growth due to the region's strong digital infrastructure and tech-savvy population. However, the market is also heavily influenced by strict data privacy regulations, particularly in countries like Australia and New Zealand. This has led to the development of advanced data security measures and increased demand for hybrid cloud solutions. Additionally, the diverse cultural landscape in the region has resulted in a varied adoption of cloud technologies, with some countries showing a greater preference for public cloud services than others.

Underlying macroeconomic factors: The Public Cloud Market in Australia & Oceania is heavily impacted by macroeconomic factors such as government policies, technological advancements, and investment in digital infrastructure. Countries with progressive regulatory frameworks and significant investments in cloud computing are witnessing rapid market growth, while those with regulatory constraints and limited investments are experiencing slower growth. Furthermore, the increasing adoption of digital transformation and the growing demand for agile and scalable solutions are driving the demand for public cloud services in the region. This trend is expected to continue as the region focuses on enhancing its digital capabilities and creating a conducive environment for cloud adoption.

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.