Public Cloud - GCC

Revenue in the Public Cloud market within the GCC is projected to reach US$5,096.00m in 2024.
Software as a Service is expected to dominate this market in the GCC, with a projected market volume of US$1,523.00m in 2024.
The revenue in the GCC is anticipated to show an annual growth rate (CAGR 2024-2029) of 17.96%, leading to a market volume of US$11,640.00m by 2029.
In a global comparison, the majority of revenue will be generated the United States, which is projected to reach US$388.50bn in 2024.
The GCC region is increasingly adopting public cloud solutions, driven by a growing demand for digital transformation and enhanced data security measures.

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 GCC is witnessing significant growth, fueled by factors such as the increasing adoption of digital technologies, rising awareness about the benefits of cloud services, and the convenience offered by online solutions. The market's average growth rate is impacted by the sub-markets of Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery as a Service. These sub-markets are driving the overall market's growth by providing a variety of cloud solutions to meet the diverse needs of consumers. Additionally, the growing demand for cost-effective and efficient cloud services is further boosting the market's expansion in GCC.

Customer preferences: The GCC region has witnessed a significant increase in the adoption of public cloud services, with businesses and consumers alike turning to the cloud for storage, collaboration, and data analytics. This shift is largely driven by the growing need for remote work and virtual solutions, as well as the rise of e-commerce and digital transactions. Additionally, the region's tech-savvy and mobile-first population has shown a preference for cloud-based solutions, leading to a surge in the demand for Software-as-a-Service (SaaS) and Infrastructure-as-a-Service (IaaS) offerings. This trend is expected to continue as more organizations and individuals embrace the benefits of cloud computing, such as scalability, cost-efficiency, and accessibility.

Trends in the market: In the GCC, the Public Cloud Market is experiencing a surge in demand for cloud-based services, as organizations increasingly shift towards digital transformation. This trend is driven by factors such as cost savings, scalability, and remote work arrangements. As a result, there is a growing focus on cloud security and compliance, with the adoption of advanced technologies such as AI and machine learning. This trajectory is significant as it allows organizations to streamline operations and improve efficiency. However, it also poses challenges in terms of data privacy and regulatory compliance. Industry stakeholders must stay abreast of these trends to capitalize on the opportunities while mitigating potential risks.

Local special circumstances: In the GCC region, the Public Cloud Market is rapidly growing due to the government's strong focus on diversifying the economy and reducing dependence on oil. This has led to increased investments in digital infrastructure and initiatives to promote digital transformation across industries. Additionally, the region's large youth population and high smartphone penetration rate have created a demand for cloud-based services, especially in the areas of e-commerce, e-learning, and telemedicine. Furthermore, the GCC's strict data privacy regulations and security concerns have led to a preference for local cloud providers, creating a unique market dynamic in the region.

Underlying macroeconomic factors: The Public Cloud Market in GCC is heavily influenced by macroeconomic factors such as technological advancements, government support, and investment in ICT 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 ICT funding. Additionally, the growing demand for digital transformation and the increasing adoption of cloud-based solutions among businesses are driving the growth of the Public Cloud Market in GCC.

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.