Public Cloud

Hong Kong

Highlights

Revenue in the Public Cloud market is projected to reach US$3.54bn in 2024.
Platform as a Service dominates the market with a projected market volume of US$1.21bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 18.73%, resulting in a market volume of US$8.36bn by 2029.
In global comparison, most revenue will be generated United States (US$388.50bn in 2024).

Key regions:

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 definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Public Cloud market in Hong Kong is experiencing considerable growth due to factors such as increasing adoption of digital technologies, rising awareness of cloud services, and the convenience offered by online solutions. This growth can also be attributed to the various sub-markets, each catering to different business needs. With a strong demand for Infrastructure as a Service, Platform as a Service, Software as a Service, Business Process as a Service, Desktop as a Service, and Disaster Recovery as a Service, the Public Cloud market in Hong Kong is expected to continue its upward trend in the foreseeable future.

Customer preferences: The growing demand for remote work and virtual collaboration tools in Hong Kong has resulted in a surge in adoption of public cloud services. This trend is driven by the increasing need for flexible and agile work arrangements, as well as the desire for cost-effective and scalable solutions. Additionally, the cultural preference for efficiency and convenience has led to a rise in demand for cloud-based communication and productivity tools. As a result, the public cloud market in Hong Kong is expected to continue its upward trajectory in the coming years.

Trends in the market: In Hong Kong, the Public Cloud Market is experiencing a surge in demand for Software-as-a-Service (SaaS) solutions, driven by the increasing adoption of remote work and digital transformation initiatives. This trend is expected to continue as businesses look for cost-effective and scalable solutions to facilitate their operations. Additionally, there is a growing focus on hybrid cloud solutions, combining the benefits of both public and private cloud services. This trend is significant as it enables organizations to have more flexibility and control over their data storage and management. However, it also presents challenges for industry stakeholders, such as data security and compliance. To address these concerns, there is a growing emphasis on cloud security and compliance services, providing opportunities for industry players to offer specialized solutions.

Local special circumstances: In Hong Kong, the Public Cloud Market is thriving due to the city's advanced telecommunications infrastructure and high internet penetration rates. The government's support for digital transformation and adoption of cloud-based solutions has also contributed to the growth of the market. Additionally, Hong Kong's proximity to China presents a unique opportunity for cloud providers to tap into the large and rapidly expanding Chinese market. The city's efficient regulatory framework and business-friendly environment further enhance its attractiveness as a regional hub for cloud services.

Underlying macroeconomic factors: The growth of the Public Cloud Market in Hong Kong is heavily influenced by macroeconomic factors such as the country's economic stability, government policies, and investments in digital infrastructure. Hong Kong's strong economic performance and government support for digital transformation have created a favorable environment for the adoption of public cloud services. Additionally, the increasing demand for cost-effective and scalable solutions in the rapidly expanding digital economy of Hong Kong has further boosted the growth of the Public Cloud Market. Moreover, the government's push towards digitalization and the rise in remote working due to the COVID-19 pandemic have also contributed to the market's growth. These factors make Hong Kong a promising market for public cloud providers.

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.