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$86.02bn 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.
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 witnessing significant growth, driven by factors such as increasing adoption of digital technologies, rising demand for online services, and the convenience offered by cloud solutions. The market's average growth rate may be impacted by factors such as competition among sub-markets and the availability of cost-effective solutions.

Customer preferences: The Public Cloud Market in EMEA is witnessing a notable shift towards hybrid cloud solutions, with organizations leveraging both public and private cloud offerings to meet their specific needs. This trend is driven by a growing preference for flexibility and scalability, as well as the need for a secure and customized cloud environment. Additionally, the rise of remote work and the need for seamless collaboration has also led to an increased adoption of cloud-based communication and productivity tools. This shift towards hybrid cloud solutions highlights the importance of a tailored approach to cloud computing, catering to the diverse needs of businesses in the region.

Trends in the market: In EMEA, the Public Cloud Market is witnessing a surge in hybrid cloud adoption, with organizations increasingly using a mix of public and private cloud services. This trend is driven by the need for greater flexibility and cost-effectiveness, as well as the increasing demand for data privacy and security. Additionally, there is a growing trend of multi-cloud strategies, where companies use multiple public cloud providers to avoid vendor lock-in. This trend is expected to continue, with potential implications for industry stakeholders such as cloud service providers, IT departments, and compliance teams.

Local special circumstances: In EMEA, the Public Cloud Market is shaped by a complex regulatory landscape and diverse cultural norms. In countries like Germany and France, privacy laws and cultural values around data protection have led to slower adoption of public cloud services. Meanwhile, countries like the UAE and Saudi Arabia have seen rapid growth in the market, driven by government initiatives to modernize their economies and reduce dependence on oil. In emerging markets like Turkey and South Africa, the market is driven by the need to improve access to technology and services in underserved areas. These factors highlight the unique challenges and opportunities for the public cloud market in the EMEA region.

Underlying macroeconomic factors: The Public Cloud Market in EMEA is significantly impacted by macroeconomic factors such as economic stability, government policies, and digital transformation initiatives. Countries with a strong economy and supportive government policies are witnessing rapid growth in the public cloud market, driven by increased adoption of digital technologies and digital transformation strategies across industries. Moreover, the growing trend towards remote work and the need for scalable and cost-effective IT infrastructure are also contributing to the demand for public cloud services in the region.

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.