Public Cloud - EU-27

EU-27

Revenue in the Public Cloud market is projected to reach US$123.60bn in 2024.
Software as a Service dominates the market with a projected market volume of US$54.75bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 17.50%, resulting in a market volume of US$276.80bn by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$550.90 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 EU-27 has been experiencing significant growth in recent years, driven by changing customer preferences and trends in the market.

Customer preferences: Customers in the EU-27 region have shown a strong preference for Public Cloud services due to their flexibility, scalability, and cost-effectiveness. With the increasing adoption of digital technologies and the need for remote working solutions, businesses are increasingly relying on Public Cloud platforms to store and access their data. This preference for Public Cloud services is further reinforced by the growing demand for Software-as-a-Service (SaaS) applications, which are often hosted on Public Cloud platforms.

Trends in the market: One of the key trends in the Public Cloud market in EU-27 is the increasing adoption of hybrid cloud solutions. Businesses are recognizing the benefits of combining Public Cloud services with private cloud or on-premises infrastructure to create a more flexible and efficient IT environment. This trend is driven by the need to balance data security and compliance requirements with the scalability and cost savings offered by Public Cloud platforms. Another trend in the market is the rise of multi-cloud strategies, where businesses use multiple Public Cloud providers to meet their specific needs. This trend is driven by the desire to avoid vendor lock-in and to take advantage of the unique features and capabilities offered by different Public Cloud providers.

Local special circumstances: The Public Cloud market in EU-27 is influenced by several local special circumstances. One of these is the General Data Protection Regulation (GDPR), which has had a significant impact on how businesses handle and store data. The GDPR requires businesses to ensure the security and privacy of personal data, which has led to increased scrutiny of Public Cloud providers and their data protection practices. This has created opportunities for European-based Public Cloud providers to gain market share by offering GDPR-compliant solutions. Another local special circumstance is the increasing focus on sustainability and environmental responsibility. Businesses in the EU-27 region are increasingly looking for Public Cloud providers that prioritize renewable energy sources and have a low carbon footprint. This has led to the emergence of "green" Public Cloud providers that use renewable energy to power their data centers and offer carbon-neutral services.

Underlying macroeconomic factors: The growth of the Public Cloud market in EU-27 is also influenced by underlying macroeconomic factors. The region has seen strong economic growth in recent years, which has led to increased investment in digital transformation initiatives by businesses. This investment has fueled the demand for Public Cloud services as businesses seek to modernize their IT infrastructure and leverage the benefits of cloud computing. Furthermore, the EU-27 region has a highly skilled workforce and a strong focus on innovation and technology. This has created a favorable environment for the adoption of Public Cloud services, as businesses have the necessary expertise to leverage the full potential of these platforms. In conclusion, the Public Cloud market in EU-27 is experiencing significant growth due to changing customer preferences, trends in the market, local special circumstances such as GDPR compliance and sustainability, and underlying macroeconomic factors. Businesses in the region are increasingly adopting Public Cloud services to meet their evolving needs for flexibility, scalability, and cost-effectiveness.

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.