Public Cloud - Central & Western Europe

Central & Western Europe

Revenue in the Public Cloud market is projected to reach US$125.20bn in 2024.
Software as a Service dominates the market with a projected market volume of US$60.02bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 18.15%, resulting in a market volume of US$288.30bn 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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Analyst Opinion

The Public Cloud market in Central & Western Europe is experiencing steady growth due to factors such as increased adoption of digital technologies, growing awareness of the benefits of online services, and the convenience of cloud-based solutions. The average growth rate is influenced by the demand for various sub-markets such as Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery as a Service.

Customer preferences: The rising trend of remote work and virtual collaboration has led to an increased demand for cloud-based communication and productivity tools in Central & Western Europe. With the region's growing digitalization and emphasis on efficiency, businesses are opting for public cloud solutions to streamline operations and improve scalability. Furthermore, the COVID-19 pandemic has accelerated the adoption of public cloud services as a means to enable remote work and ensure business continuity. This shift towards cloud-based solutions is expected to continue even after the pandemic, as companies realize the benefits and cost savings of a digitally-enabled workforce.

Trends in the market: In Central & Western Europe, the public cloud market is experiencing a surge in adoption due to the growing demand for data storage and management solutions. This trend is expected to continue with the increasing use of cloud-based services for remote work, e-commerce, and digital transformation initiatives. As a result, major players in the industry are expanding their offerings and investing in new technologies such as artificial intelligence and edge computing. This shift towards the cloud has significant implications for industry stakeholders, including increased competition and the need for continuous innovation to meet evolving customer needs. Additionally, the rise of data privacy regulations in the region has led to a greater focus on security and compliance within the cloud market.

Local special circumstances: In Central & Western Europe, the Public Cloud Market is heavily influenced by the region's strong data privacy regulations, such as the General Data Protection Regulation (GDPR). This has led to increased demand for secure and compliant cloud solutions, driving the growth of local cloud service providers. Additionally, the region's diverse business landscape and language barriers have created a need for specialized cloud services, tailored to local needs. Furthermore, the high level of digitalization in the region, coupled with its strong economic stability, has made it a fertile ground for the adoption of public cloud services by enterprises of all sizes.

Underlying macroeconomic factors: The Public Cloud Market in Central & Western Europe is strongly influenced by macroeconomic factors such as technological advancements, government regulations, and investment in digital infrastructure. Countries with supportive regulatory environments and significant investments in cloud technologies are experiencing rapid market growth, while regions with regulatory challenges and limited funding are facing slower growth. Moreover, the increasing digitization of businesses and the growing need for cost-effective and scalable solutions are fueling the demand for public cloud services 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.