Public Cloud - Benelux

Benelux

Revenue in the Public Cloud market in Benelux is projected to reach US$16.51bn in 2024.
Software as a Service is anticipated to dominate this market with a projected market volume of US$8.10bn in 2024.
Revenue in Benelux is expected to show an annual growth rate (CAGR 2024-2029) of 17.14%, which will lead to a market volume of US$36.42bn by 2029.
In a global context, the majority of revenue will be generated the United States, amounting to US$388.50bn in 2024.
The Benelux region is increasingly prioritizing data sovereignty and compliance in its public cloud strategies, reflecting a growing demand for localized solutions.

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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Market

Region

Region comparison

Currency

Analyst Opinion

The Public Cloud market in Benelux is rapidly growing, driven by the increasing adoption of digital technologies, rising awareness about cloud services, and the convenience offered by online solutions. The average growth rate reflects the impact of factors such as the availability of various sub-markets and the demand for Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery as a Service.

Customer preferences: Consumers in the Benelux region are increasingly adopting public cloud solutions to streamline business processes and enhance efficiency. This trend is driven by the growing reliance on digital technologies and the need for remote collaboration and data access. Additionally, the rise of remote work due to the COVID-19 pandemic has further accelerated the adoption of public cloud services. This has led to a shift towards virtual communication and collaboration tools, as well as a greater focus on cloud security and data protection.

Trends in the market: In the Benelux countries, the Public Cloud Market is experiencing a surge in demand for hybrid cloud solutions, with companies seeking the flexibility and cost-saving benefits of combining public and private cloud services. Additionally, there is a growing trend of leveraging cloud-based artificial intelligence and machine learning tools for data analysis and business decision-making. These developments are significant for industry stakeholders, as they offer opportunities for cost optimization, improved efficiency, and enhanced innovation. However, they also bring challenges in terms of data privacy and security, requiring companies to carefully manage their cloud strategy and partnerships.

Local special circumstances: In Benelux, the Public Cloud market is thriving due to the high level of digitalization and tech-savvy population. The region's favorable regulatory environment and strong data privacy laws have also attracted many international cloud providers. Additionally, the demand for cloud services is driven by the region's strong economic growth and the increasing demand for data storage and management solutions. In Belgium, the market is further boosted by the government's initiatives to promote digital transformation, while in the Netherlands, the growing e-commerce industry and the need for agile and scalable IT infrastructure are key drivers.

Underlying macroeconomic factors: The Public Cloud marketin the Benelux region is expected to experience significant growth due to favorable macroeconomic factors. The region's strong economic health, with all three countries ranking in the top 20 globally in terms of GDP per capita, provides a stable foundation for market growth. Additionally, the Benelux region has been at the forefront of digital transformation, with initiatives such as the Digital Benelux Action Plan promoting the adoption of advanced technologies like cloud computing. This, coupled with supportive regulatory environments and government investment in digital infrastructure, is driving the demand for public cloud services in the region. Furthermore, the region's central location and well-developed logistics infrastructure make it an ideal location for data centers, attracting major cloud service providers to establish a presence in the Benelux market. These factors are expected to continue fueling the growth of the public cloud market in the Benelux region.

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.