Public Cloud - Hong Kong

Hong Kong

Revenue in the Public Cloud market is projected to reach US$3,544.00m in 2024.
Platform as a Service dominates the market with a projected market volume of US$1,213.00m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 18.74%, resulting in a market volume of US$8,364.00m by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$950.50 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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Region

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Analyst Opinion

The Public Cloud market in Hong Kong is experiencing significant growth and development, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Hong Kong, customers are increasingly opting for Public Cloud solutions due to their scalability, flexibility, and cost-effectiveness. Public Cloud providers offer a wide range of services, including Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS), catering to the diverse needs of businesses and individuals. The ability to access and manage data and applications remotely is particularly appealing to customers in Hong Kong, as it allows for seamless collaboration and increased productivity.

Trends in the market: One of the key trends in the Public Cloud market in Hong Kong is the adoption of hybrid cloud solutions. Many businesses are leveraging a combination of Public Cloud and private on-premises infrastructure to achieve a balance between security and scalability. This trend is driven by the need to store sensitive data on-premises while taking advantage of the scalability and cost savings offered by Public Cloud providers. Another trend in the market is the increasing demand for cloud-native services and solutions. As businesses in Hong Kong embrace digital transformation, they are turning to cloud-native technologies such as containers and serverless computing to develop and deploy applications more efficiently. Public Cloud providers are investing heavily in these technologies to meet the growing demand and offer innovative solutions to their customers.

Local special circumstances: Hong Kong's status as a global financial hub and its proximity to mainland China make it an attractive market for Public Cloud providers. Many multinational companies have their regional headquarters or offices in Hong Kong, creating a demand for cloud services that can support their operations across different locations. Additionally, Hong Kong's strong data protection and privacy regulations provide customers with confidence in the security and compliance of Public Cloud solutions.

Underlying macroeconomic factors: The strong economic growth and increasing digitalization in Hong Kong are driving the development of the Public Cloud market. As businesses expand and modernize their operations, they require scalable and flexible IT infrastructure to support their growth. Public Cloud solutions offer a cost-effective alternative to traditional on-premises infrastructure, allowing businesses to allocate resources more efficiently and focus on their core competencies. Furthermore, the government of Hong Kong has been actively promoting the adoption of cloud computing through various initiatives and policies. This support from the government has created a favorable environment for Public Cloud providers to invest and expand their operations in Hong Kong. In conclusion, the Public Cloud market in Hong Kong is experiencing rapid growth due to customer preferences for scalable and cost-effective solutions, adoption of hybrid cloud and cloud-native technologies, local special circumstances such as Hong Kong's status as a financial hub, and underlying macroeconomic factors such as economic growth and government support. This trend is expected to continue as businesses in Hong Kong increasingly embrace digital transformation and seek innovative cloud solutions to drive their growth and competitiveness.

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.