Public Cloud - Germany

Germany

Revenue in the Public Cloud market is projected to reach US$32.08bn in 2024.
Software as a Service dominates the market with a projected market volume of US$17.06bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 17.59%, resulting in a market volume of US$72.11bn by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$703.10 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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Analyst Opinion

The Public Cloud market in Germany has been seeing steady growth, driven by factors like increasing adoption of digital technologies, rising awareness about cloud services, and the convenience of online solutions. The market's average growth rate is influenced by various sub-markets, each with their own unique impact on the overall market.

Customer preferences: As Germany continues to prioritize sustainability and environmental responsibility, consumers are increasingly opting for eco-friendly and energy-efficient solutions. This is reflected in the growing demand for cloud-based services, which not only reduce carbon footprint but also offer scalability and cost-efficiency. Additionally, the rise of remote work and virtual events has accelerated the adoption of public cloud solutions, enabling businesses to operate efficiently and sustainably.

Trends in the market: In Germany, the Public Cloud Market is experiencing a surge in demand for hybrid cloud solutions, as companies seek to balance cost efficiency with data security. Moreover, there is a growing trend towards multi-cloud strategies, allowing organizations to leverage the strengths of different cloud providers. These developments are significant as they reflect a shift towards a more strategic and holistic approach to cloud adoption. For industry stakeholders, this means a need to offer flexible and secure solutions, while also adapting to changing customer preferences and the evolving competitive landscape.

Local special circumstances: In Germany, the Public Cloud market is thriving due to the country's strong economy and high level of digitalization. The German government has implemented strict data protection laws, leading to a high level of trust in cloud services. Additionally, the country's strong manufacturing and automotive industries are driving the demand for cloud-based solutions to optimize operations and increase efficiency. The German market also values privacy and security, making it essential for cloud providers to comply with strict regulations. This has led to the emergence of local providers, catering to the unique needs and preferences of German businesses.

Underlying macroeconomic factors: The growth of the Public Cloud Market is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with a strong digital economy and supportive regulatory environments are experiencing faster market growth compared to regions with limited digital infrastructure and regulatory challenges. The increasing adoption of digital transformation strategies by businesses and the rising demand for cost-effective and scalable cloud solutions are also driving the growth of the Public Cloud Market in Germany. Moreover, the ongoing digitalization of industries and the increasing utilization of data analytics are expected to further boost the market growth in the coming years.

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.