Public Cloud - EU-27

EU-27

Revenue in the Public Cloud market within the EU-US$276.80bn is projected to reach US$123.60bn in 2024.
Software as a Service is anticipated to dominate this market with a projected market volume of US$52.86bn in 2024.
Revenue in the EU-US$276.80bn is expected to exhibit an annual growth rate (CAGR 2024-2029) of 17.50%, ultimately resulting in a market volume of US$276.80bn by 2029.
In a global context, the majority of revenue will be generated the United States, which is expected to reach US$388.50bn in 2024.
The EU-27 is experiencing a significant shift towards sustainable cloud solutions, reflecting the region's commitment to green technology and digital transformation.

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 EU-27 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 of cloud-based solutions. The market's average growth rate is impacted by various sub-markets, each with their own unique growth factors.

Customer preferences: There is a growing preference for cloud-based solutions in the EU-27, driven by the increasing need for remote work and communication tools. This has led to a rise in demand for collaborative platforms and virtual meeting software, as well as cloud-based project management tools. Furthermore, the shift towards remote work has also accelerated the adoption of cloud-based storage and file-sharing services, as companies strive to ensure secure and efficient access to shared documents and data.

Trends in the market: In the EU-27, the Public Cloud Market is experiencing a surge in demand for cloud services, driven by the increasing adoption of digital transformation strategies by businesses. This trend is expected to continue as companies seek to optimize their operations and reduce costs. Additionally, there is a growing trend of using cloud-based solutions for data storage and management, as well as for collaboration and communication tools. These trends highlight the significance of the public cloud market in enabling businesses to stay competitive and agile. For industry stakeholders, this presents opportunities for growth and innovation in providing cloud services, but also challenges in terms of data security and compliance. Ultimately, the trajectory of these trends points towards a more digital and interconnected business landscape in the EU-27.

Local special circumstances: In EU-27, the Public Cloud Market is heavily influenced by the continent's stringent data privacy laws, such as the General Data Protection Regulation (GDPR). This has led to increased demand for cloud services that prioritize data security and compliance. Additionally, cultural differences within the EU-27, such as varying levels of digital adoption and comfort with cloud technology, affect the pace of market growth. In countries with more mature cloud markets, like Germany and the UK, businesses are more likely to adopt advanced cloud solutions, while others may opt for more basic offerings. These unique local factors shape the competitive landscape and drive market dynamics in the EU-27 Public Cloud Market.

Underlying macroeconomic factors: The growth of the Public Cloud Market is also influenced by macroeconomic factors such as technological advancements, regulatory support, and investment in digital infrastructure. Countries with favorable regulatory environments and strong investment in cloud technologies are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Additionally, the increasing adoption of digital transformation initiatives and the shift towards remote work due to the COVID-19 pandemic have contributed to the growth of the public cloud market in the EU-27. The market is also driven by the increasing demand for cost-effective, scalable, and secure solutions for data storage, management, and processing, as well as the need for businesses to improve their agility and competitiveness in the digital landscape.

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.