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$61.68bn 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.
The average spend per employee in the Public Cloud market is projected to reach US$722.20 in 2024.
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

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Analyst Opinion

The Public Cloud market in Central & Western Europe is experiencing significant growth and development. Customer preferences are shifting towards cloud-based solutions due to their scalability, cost-effectiveness, and flexibility. This trend is driven by several factors, including the increasing demand for digital transformation, the need for remote work solutions, and the growing adoption of emerging technologies.

Customer preferences: Customers in Central & Western Europe are increasingly opting for public cloud solutions due to their numerous benefits. The scalability of public cloud services allows businesses to easily adjust their computing resources according to their needs, ensuring optimal performance and cost-efficiency. Additionally, the pay-as-you-go pricing model enables organizations to only pay for the resources they actually use, reducing upfront costs and improving financial flexibility. Furthermore, the flexibility of public cloud solutions allows employees to access data and applications from anywhere, facilitating remote work and collaboration.

Trends in the market: One of the key trends in the Public Cloud market in Central & Western Europe is the increasing adoption of hybrid cloud solutions. Many organizations are leveraging a combination of public and private cloud services to meet their specific needs. This hybrid approach enables businesses to take advantage of the scalability and cost-effectiveness of public cloud services, while also maintaining control over sensitive data through private cloud infrastructure. Another trend in the market is the growing demand for cloud-native technologies. Businesses are increasingly developing and deploying applications using cloud-native architectures, such as containers and microservices. These technologies enable organizations to build and scale applications more efficiently, resulting in faster time-to-market and improved agility.

Local special circumstances: Central & Western Europe is home to a diverse range of industries, including finance, manufacturing, healthcare, and retail. Each industry has its own unique requirements and challenges, which influence the adoption of public cloud solutions. For example, the finance sector requires robust security measures and compliance with data protection regulations. On the other hand, the manufacturing industry may prioritize cloud solutions that enable real-time data analysis and predictive maintenance.

Underlying macroeconomic factors: The Public Cloud market in Central & Western Europe is also influenced by underlying macroeconomic factors. The region is experiencing rapid digital transformation, with businesses investing in technologies to drive innovation and improve operational efficiency. Additionally, the increasing adoption of emerging technologies, such as artificial intelligence and Internet of Things, is driving the demand for cloud-based solutions that can support these advanced applications. Furthermore, the COVID-19 pandemic has accelerated the shift towards remote work and digitalization, further fueling the growth of the public cloud market. In conclusion, the Public Cloud market in Central & Western Europe is witnessing significant growth and development. Customer preferences are shifting towards cloud-based solutions due to their scalability, cost-effectiveness, and flexibility. The adoption of hybrid cloud solutions and cloud-native technologies are key trends in the market. Local special circumstances, such as industry-specific requirements, also influence the adoption of public cloud solutions. Underlying macroeconomic factors, including digital transformation and the demand for emerging technologies, are driving the growth of the market.

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.