Public Cloud - Central America

Central America

Revenue in the Public Cloud market is projected to reach US$1,094.00m in 2024.
Infrastructure as a Service dominates the market with a projected market volume of US$325.00m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 20.21%, resulting in a market volume of US$2,746.00m 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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Market

Region

Region comparison

Currency

Analyst Opinion

The Public Cloud market is rapidly growing in Central America, driven by the increasing adoption of digital technologies, rising awareness of the importance of cloud services, and the convenience they offer. The market is seeing considerable growth, which can be attributed to factors such as the availability of various sub-markets, the ease of access to services, and the growing demand for efficient and cost-effective solutions. However, challenges such as data privacy concerns and the need for robust disaster recovery services may impact the growth rate.

Customer preferences: As technology adoption rates continue to rise in Central America, consumers are increasingly looking towards public cloud solutions to streamline their business processes and operations. This trend is driven by the need for efficient and cost-effective IT solutions, as well as the growing demand for remote work options. Additionally, the region's growing digital economy has led to a rise in demand for cloud-based services, with businesses and individuals alike turning to the cloud for storage, collaboration, and other key functions.

Trends in the market: In Central America, there is a significant growth in the adoption of public cloud services, with more businesses shifting towards cloud-based solutions to increase efficiency and reduce costs. This trend is expected to continue as the region's digital infrastructure improves and more organizations embrace digital transformation. The significance of this trend lies in the potential for increased scalability, flexibility, and accessibility of data and applications. Industry stakeholders can expect to see a rise in demand for cloud-based services, leading to a more competitive market and potential partnerships between local and international cloud providers. This trajectory towards cloud adoption also has implications for data privacy and security, as organizations must ensure compliance with regulations and invest in robust security measures.

Local special circumstances: In Central America, the Public Cloud Market is growing rapidly due to the region's increasing digitalization and the government's focus on promoting technology adoption. The unique geographical and cultural diversity in the region has led to the development of innovative cloud solutions tailored to local needs. Additionally, several countries in Central America have implemented favorable regulations and tax incentives for cloud providers, attracting international players to enter the market. This combination of factors has created a dynamic and competitive environment for the Public Cloud Market in Central America.

Underlying macroeconomic factors: The Public Cloud Market in Central America is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with supportive regulatory environments and significant investments in cloud technologies are experiencing rapid growth in the market. However, regions with regulatory challenges and limited resources are facing slower adoption of public cloud services. Moreover, the growing demand for digital transformation and the increasing adoption of mobile devices are driving the demand for public cloud solutions in the 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.