Public Cloud - CIS

Revenue in the Public Cloud market is projected to reach US$6,640.00m in 2024.
Software as a Service dominates the market with a projected market volume of US$2,522.00m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 16.99%, resulting in a market volume of US$14,550.00m by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$57.35 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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Analyst Opinion

The Public Cloud market in CIS is witnessing a steady growth rate, driven by factors such as increasing adoption of digital technologies, rising awareness about cloud services among businesses and individuals, and the convenience offered by online platforms. These factors are primarily impacting the Infrastructure as a Service, Platform as a Service, Software as a Service, Business Process as a Service, and Desktop as a Service sub-markets, leading to an overall average growth rate.

Customer preferences: As the demand for remote work and virtual collaboration continues to grow in the CIS and Public Cloud Market, there is a notable shift towards cloud-based communication and project management tools. This trend is driven by the need for efficient and seamless remote collaboration, as well as the increasing preference for flexible and mobile work arrangements. Additionally, the rise of the gig economy has also contributed to the demand for cloud-based solutions that enable individuals to work and communicate from anywhere, at any time.

Trends in the market: In the CIS region, the Public Cloud Market is experiencing a surge in demand for hybrid cloud solutions, as organizations seek to balance the benefits of public and private clouds. This trend is driven by the need for increased flexibility and scalability, as well as cost savings. Another significant trend is the rise of multi-cloud strategies, as businesses look to diversify their cloud providers and avoid vendor lock-in. These developments have far-reaching implications for industry stakeholders, including cloud service providers who must adapt to meet these changing demands and provide seamless integration across multiple cloud environments. As the market continues to evolve, we can expect to see further advancements in cloud technology and increased competition in the Public Cloud Market.

Local special circumstances: In the CIS region, the Public Cloud Market is experiencing rapid growth due to the increasing adoption of digital transformation initiatives by enterprises. This is influenced by the region's focus on modernizing legacy systems and improving efficiency. Additionally, the unique cultural and regulatory landscape in the CIS countries, such as data privacy laws and government support for cloud adoption, are also driving the market. Furthermore, the region's strategic location between Europe and Asia makes it an attractive location for global cloud service providers to expand their presence.

Underlying macroeconomic factors: The growth of the Public Cloud Market is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with favorable regulatory environments and strong investments in cloud technologies are experiencing faster market growth compared to regions with regulatory challenges and limited funding. The increasing adoption of digital transformation strategies and the growing demand for remote work solutions are also driving the growth of the public cloud market. Additionally, the rising trend of data-driven decision making and the need for cost-effective and scalable IT solutions are further fueling the market growth.

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.