Public Cloud - Costa Rica

Costa Rica

In Costa Rica, revenue in the Public Cloud market is projected to reach US$501.50m in 2025.
Infrastructure as a Service dominates the market in Costa Rica with a projected market volume of US$160.80m in 2025.
Revenue in the Costa Rican market is expected to show an annual growth rate (CAGR 2025-2029) of 18.53%, resulting in a market volume of US$990.00m by 2029.
In global comparison, most revenue will be generated the United States, which is expected to reach US$466.10bn in 2025.
Costa Rica is increasingly adopting public cloud solutions, driven by a rising demand for digital transformation among local businesses and government initiatives.

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

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Analyst Opinion

The Public Cloud market in Costa Rica is rapidly growing, driven by increasing adoption of digital technologies, rising awareness of cloud services, and the convenience of online options. The market's considerable growth rate can be attributed to factors such as the availability of different sub-markets and the demand for Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery as a Service.

Customer preferences: As Costa Rica's economy and technology infrastructure continue to advance, there is a growing demand for public cloud solutions among businesses and consumers. This trend is driven by the need for flexibility and cost-effectiveness, as well as the increasing popularity of remote work and online services. Additionally, there is a cultural shift towards digital solutions and convenience, making the public cloud market a highly attractive option for individuals and companies alike.

Trends in the market: In Costa Rica, the Public Cloud Market is experiencing a surge in demand as businesses seek to modernize their IT infrastructure and take advantage of cost-effective and scalable cloud solutions. This trend is expected to continue as more companies adopt remote work policies and prioritize digital transformation. Additionally, the government has launched initiatives to promote the use of cloud services, further driving the growth of the market. Industry stakeholders, including cloud service providers and businesses, must stay informed and adapt to these developments to remain competitive in the evolving landscape.

Local special circumstances: In Costa Rica, the Public Cloud market is gaining traction due to the country's favorable business environment and high level of digital literacy. The government has also implemented policies to promote the adoption of cloud technology, such as tax incentives for companies using cloud services. Additionally, the country's strategic location and reliable internet infrastructure make it an ideal location for data centers, attracting investment from major cloud providers. However, cultural preferences towards local solutions and concerns over data security and privacy may pose challenges for international cloud providers entering the market.

Underlying macroeconomic factors: The Public Cloud Market in Costa Rica is greatly impacted by macroeconomic factors such as the country's economic growth, government policies, and investment in technology infrastructure. With a growing economy and favorable regulatory environment, Costa Rica is experiencing a surge in demand for cloud-based solutions in various industries. Additionally, the country's investment in technology and digital infrastructure is driving the adoption of public cloud services, as businesses seek to improve efficiency and reduce costs. Furthermore, the increasing trend of remote work and the need for scalable and flexible solutions have also contributed to the growth of the public cloud market in Costa Rica.

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.