Public Cloud - GCC

Revenue in the Public Cloud market is projected to reach US$5,096.00m in 2024.
Software as a Service dominates the market with a projected market volume of US$1,742.00m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 17.96%, resulting in a market volume of US$11,640.00m by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$161.80 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 GCC Public Cloud market is witnessing steady growth due to factors such as increased adoption of digital technologies, rising awareness about cloud services, and the convenience offered by online platforms. The market is expected to maintain an average growth rate, influenced by factors such as government initiatives, technological advancements, and the growing demand for cost-effective and scalable cloud solutions.

Customer preferences: As the GCC region continues to embrace digital transformation, the Public Cloud Market is experiencing a shift towards cloud-based solutions for data storage and management. This is driven by a growing demand for remote work and collaboration tools, as well as a desire for increased scalability and cost-efficiency. Additionally, the rise of e-commerce and online shopping in the region has led to a surge in demand for cloud-based e-commerce platforms and digital payment solutions. This trend is expected to continue as consumers prioritize convenience and flexibility in their purchasing habits.

Trends in the market: In the GCC region, the Public Cloud Market is experiencing an increase in demand for cloud-based solutions, driven by the growing adoption of digital transformation strategies in various industries. Companies are turning to public cloud services for flexible and cost-effective IT infrastructures, as well as advanced data analytics capabilities. This trend is expected to continue, with the region's public cloud market projected to reach a value of $4.5 billion by 2022. This shift towards cloud-based solutions is significant for industry stakeholders, as it presents opportunities for growth and innovation in the market. However, it also poses challenges in terms of data security and regulatory compliance, which will need to be addressed to fully realize the potential of the public cloud in the GCC region.

Local special circumstances: In the GCC, the Public Cloud Market is emerging due to the region's rapid digital transformation and efforts to diversify from traditional oil-based economies. The market is also influenced by cultural factors, such as the increasing adoption of technology in daily life and the importance placed on data security. Additionally, the region's strict data privacy regulations and government initiatives to promote cloud adoption are driving the growth of the market. This unique combination of factors sets the GCC Public Cloud Market apart from others, creating a dynamic and promising market for cloud services.

Underlying macroeconomic factors: The growth of the Public Cloud Market is also influenced by macroeconomic factors such as technological advancements, government 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 remote work and the need for efficient data storage and management are driving the demand for public cloud solutions, especially in the wake of the COVID-19 pandemic.

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.