Public Cloud - Eastern Europe

Eastern Europe

Revenue in the Public Cloud market in Eastern Europe is projected to reach US$7,158.00m in 2024.
Software as a Service is expected to dominate this market with a projected market volume of US$2,500.00m in 2024.
Revenue in Eastern Europe is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 16.59%, leading to a market volume of US$15,420.00m by 2029.
In a global context, the highest revenue will be generated the United States, amounting to US$388.50bn in 2024.
Eastern Europe's public cloud market is rapidly evolving, driven by increasing digital transformation initiatives and a growing emphasis on data sovereignty among local businesses.

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 Eastern Europe is witnessing considerable growth, driven by factors such as increasing adoption of digital technologies, growing awareness about the benefits of online services, and the convenience offered by cloud solutions. The market is expected to continue its average growth rate, with factors such as the sub-markets of Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery as a Service playing a crucial role in shaping its trajectory.

Customer preferences: The growing adoption of digital technologies among individuals and businesses in Eastern Europe has led to a significant increase in demand for public cloud services. This trend is fueled by the need for scalable and cost-effective solutions, as well as the growing awareness of the benefits of cloud computing. Furthermore, the rise of remote work and virtual collaboration has accelerated the shift towards cloud-based platforms, as organizations seek to improve efficiency and flexibility in their operations. This has also been driven by the increasing availability of high-speed internet and the growing integration of digital technologies in everyday life.

Trends in the market: In Eastern Europe, the Public Cloud Market is experiencing a surge in demand for managed cloud services, as businesses look to outsource their IT infrastructure and focus on core operations. This trend is expected to continue, driven by the increasing adoption of cloud-based solutions and advancements in technology. It has significant implications for industry stakeholders, as they will need to adapt to new business models and invest in training their workforce to handle this growing demand. Additionally, the rise of hybrid cloud solutions and the integration of AI and machine learning in cloud services will further shape the trajectory of the market in Eastern Europe.

Local special circumstances: In Eastern Europe, the Public Cloud Market is experiencing rapid growth due to the region's increasing adoption of digital technologies and the rise of remote work. Countries such as Poland, Hungary, and Czech Republic are investing in cloud infrastructure to support their growing IT sectors. However, the region also faces challenges such as data privacy regulations and the lack of digital literacy among small and medium-sized businesses. Additionally, cultural differences in business practices and preferences for local providers may impact market dynamics.

Underlying macroeconomic factors: The Eastern European public cloud market is heavily influenced by macroeconomic factors such as economic stability, government policies, and investment in digital infrastructure. Countries with favorable business climates and strong government support for technology adoption are experiencing faster market growth compared to regions with regulatory challenges and limited investment in digital infrastructure. Additionally, the increasing demand for cost-effective and scalable cloud solutions from businesses of all sizes is driving the growth of the public cloud market in Eastern Europe.

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.