Public Cloud - Estonia

Estonia

In Estonia, revenue in the Public Cloud market is projected to reach US$168.10m in 2025.
Software as a Service dominates the market in Estonia with a projected market volume of US$61.64m in 2025.
Additionally, revenue in Estonia is expected to show an annual growth rate (CAGR 2025-2029) of 18.55%, resulting in a market volume of US$332.00m by 2029.
In global comparison, most revenue will be generated the United States, which is projected to generate US$466.10bn in 2025.
Estonia's robust digital infrastructure and strong emphasis on innovation are driving significant adoption of public cloud solutions among local enterprises.

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 Estonia is experiencing steady growth, driven by factors such as increasing adoption of digital technologies, growing awareness of the benefits of online services, and the convenience they offer. This growth rate is influenced by the various sub-markets, including Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery as a Service. The average growth rate indicates a favorable market environment, with factors such as government initiatives and investments, technological advancements, and increasing demand for cloud-based solutions contributing to the overall growth.

Customer preferences: As Estonia continues to embrace digital transformation, there has been a notable increase in demand for public cloud solutions among businesses and organizations. This shift towards cloud-based services is driven by the desire for more efficient and cost-effective operations, as well as the need for remote accessibility and collaboration. Additionally, with the rise of remote work and the need for seamless virtual communication, there has been a growing trend towards cloud-based communication and collaboration tools.

Trends in the market: In Estonia, the Public Cloud market is experiencing a surge in demand for cloud-based solutions, driven by the increasing adoption of digital technologies by businesses. This trend is expected to continue, as companies seek to streamline operations and reduce costs through cloud-based services. Additionally, the government's Digital Agenda for 2020 has set a goal of making Estonia a global leader in utilizing digital technologies, further driving the growth of the Public Cloud market. This presents opportunities for industry stakeholders to offer innovative solutions and services, but also poses challenges in terms of data security and privacy. As the market continues to evolve, it is crucial for stakeholders to stay ahead of these trends and adapt to the changing landscape in order to remain competitive.

Local special circumstances: In Estonia, the Public Cloud Market has seen significant growth due to the country's tech-savvy population and strong government support for digital innovation. The small geographic size and high internet penetration have also contributed to the adoption of cloud technologies among businesses. Additionally, the country's pro-business regulations and favorable tax policies have attracted international cloud providers, creating a competitive market. The unique combination of these factors has fueled the rapid development of the Public Cloud Market in Estonia, setting it apart from other markets and driving its continued expansion.

Underlying macroeconomic factors: The Public Cloud Market in Estonia is also heavily influenced by macroeconomic factors such as technological advancements, government support, and investment in digital infrastructure. Countries with favorable regulatory environments and strong investment in digital technologies are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Additionally, the country's strong economic health and stable fiscal policies have created a favorable business environment for the growth of the Public Cloud Market. Moreover, the increasing adoption of cloud-based solutions by businesses of all sizes and the growing trend of digital transformation are also driving the demand for public cloud services in the country.

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.