Public Cloud - Eastern Asia

Eastern Asia

Revenue in the Public Cloud market is projected to reach US$94.90bn in 2024.
Infrastructure as a Service dominates the market with a projected market volume of US$40.23bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 19.72%, resulting in a market volume of US$233.40bn by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$103.90 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

Currency

Analyst Opinion

The Public Cloud market in Eastern Asia is experiencing significant growth and development.

Customer preferences: Customers in Eastern Asia are increasingly adopting public cloud services due to several reasons. Firstly, the scalability and flexibility offered by public cloud solutions allow businesses to easily adjust their IT infrastructure according to their needs. This is particularly important in a region where businesses often experience rapid growth and need to quickly adapt to changing market conditions. Additionally, the cost-effectiveness of public cloud services is appealing to customers in Eastern Asia, as it allows them to reduce their IT infrastructure costs and allocate resources more efficiently. Finally, the increasing demand for digital transformation and the need for advanced technologies such as artificial intelligence and big data analytics are driving the adoption of public cloud services in the region.

Trends in the market: One of the key trends in the public cloud market in Eastern Asia is the strong growth of Infrastructure as a Service (IaaS) offerings. Businesses in the region are increasingly relying on IaaS providers to manage their infrastructure needs, allowing them to focus on their core competencies. This trend is driven by the need for scalability, cost savings, and the desire to leverage advanced technologies such as machine learning and Internet of Things (IoT). Another trend in the market is the growing popularity of hybrid cloud solutions. Many businesses in Eastern Asia are adopting a hybrid cloud approach, combining public and private cloud services to meet their specific requirements. This allows them to take advantage of the benefits of both cloud models, such as the flexibility of public cloud and the security of private cloud.

Local special circumstances: Eastern Asia is a region with a high concentration of technology-driven economies, such as Japan, South Korea, and China. These countries have a strong focus on innovation and are home to many tech giants. This creates a favorable environment for the growth of the public cloud market, as businesses in these countries are more open to adopting new technologies. Additionally, the increasing digitalization of industries such as finance, healthcare, and manufacturing is driving the demand for public cloud services in the region. The growing number of startups and small and medium-sized enterprises (SMEs) in Eastern Asia is also contributing to the expansion of the public cloud market, as these businesses often lack the resources to build and maintain their own IT infrastructure.

Underlying macroeconomic factors: The economic growth in Eastern Asia, coupled with the increasing disposable income of consumers, is fueling the demand for public cloud services. As businesses in the region expand and enter new markets, they require scalable and cost-effective IT solutions to support their growth. Furthermore, the governments in many countries in Eastern Asia are actively promoting the adoption of cloud computing as part of their digital transformation strategies. This includes initiatives to improve internet infrastructure, provide incentives for cloud adoption, and develop regulations to ensure data security and privacy. These factors are creating a conducive environment for the growth of the public cloud market in Eastern Asia.

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.