Public Cloud - EMEA

EMEA

Revenue in the Public Cloud market is projected to reach US$205.90bn in 2024.
Software as a Service dominates the market with a projected market volume of US$89.44bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 18.07%, resulting in a market volume of US$472.40bn by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$196.60 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 EMEA is experiencing steady growth, driven by factors such as the increasing adoption of digital technologies, growing awareness of the benefits of cloud services, and the convenience of online solutions. This average growth rate is impacted by various sub-markets, including Infrastructure, Platform, Software, Business Process, and Desktop as a Service, each offering unique value propositions for businesses and consumers. The market's growth is also influenced by factors such as regulatory changes, security concerns, and the availability of skilled professionals.

Customer preferences: The increasing adoption of remote work and virtual collaboration tools has fueled the demand for public cloud solutions in the EMEA region. This trend is driven by a shift towards a more flexible and agile work culture, as well as the need for cost-effective and scalable IT infrastructure. Additionally, the rise of hybrid and multi-cloud environments is indicative of a growing preference for customized and diverse cloud solutions to meet specific business needs.

Trends in the market: In EMEA, the Public Cloud Market is experiencing a surge in adoption, driven by the increasing demand for digital transformation and the shift towards remote work. This trend is expected to continue, with organizations leveraging the scalability and cost-effectiveness of public cloud solutions. Additionally, there is a growing trend of hybrid cloud deployments, combining the benefits of public and private clouds. This presents opportunities for cloud service providers and system integrators to offer customized solutions for diverse business needs. Moreover, the rise of edge computing and the Internet of Things (IoT) is further propelling the growth of the public cloud market, as organizations seek to leverage data analytics and real-time insights for enhanced decision-making.

Local special circumstances: In the EMEA region, the Public Cloud Market is heavily influenced by the local regulations and data privacy laws. Countries like Germany and France have stricter regulations compared to others, leading to unique challenges for cloud service providers. Additionally, cultural diversity and language barriers also play a significant role in shaping the market. For example, in the Middle East, there is a growing demand for cloud services due to the rise of e-commerce and digital transformation initiatives. However, the conservative business culture and reliance on traditional IT systems also pose challenges for the adoption of public cloud solutions.

Underlying macroeconomic factors: The Public Cloud Market in EMEA is significantly impacted by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with supportive regulatory environments and strong investments in cloud technologies are experiencing rapid market growth compared to regions with regulatory challenges and limited funding. Additionally, the increasing adoption of cloud services by enterprises and the growing demand for data storage and management are driving the market growth in this region. Furthermore, the ongoing digital transformation across various industries and the shift towards remote work due to the COVID-19 pandemic are also contributing to the expansion of the Public Cloud Market in EMEA.

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.