Public Cloud - Hungary

Hungary

Revenue in the Public Cloud market is projected to reach US$750.90m in 2024.
Software as a Service dominates the market with a projected market volume of US$370.90m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 20.74%, resulting in a market volume of US$1,927.00m by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$149.10 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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Market

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Currency

Analyst Opinion

The Public Cloud market in Hungary is undergoing rapid growth, fueled by factors such as increasing demand for digital solutions, growing awareness of the benefits of online services, and the convenience offered by various sub-markets. This considerable growth rate is influenced by a variety of factors, including the country's strong technology infrastructure and government initiatives to promote digitalization.

Customer preferences: The increasing demand for remote work solutions due to the COVID-19 pandemic has also led to a surge in demand for public cloud services in Hungary. This trend is driven by the need for secure and reliable platforms for remote collaboration and communication. Additionally, as businesses continue to embrace digital transformation, the public cloud market is expected to continue to grow, with a focus on cost-effectiveness and scalability.

Trends in the market: In Hungary, the Public Cloud Market is experiencing a surge in demand for hybrid cloud solutions, with businesses seeking cost-effective and scalable options. Additionally, there is a growing trend of adopting multi-cloud strategies to avoid vendor lock-in and increase flexibility. This trajectory is significant as it allows businesses to optimize their cloud usage and improve their overall IT efficiency. However, it also presents challenges for industry stakeholders, such as managing multiple cloud providers and ensuring data security and compliance. As the market continues to evolve, it is essential for stakeholders to stay updated on emerging trends and adapt their strategies accordingly.

Local special circumstances: In Hungary, the Public Cloud Market is experiencing significant growth due to the government's push for digital transformation and the country's strategic location in Central Europe. The market is also benefiting from the country's high level of internet penetration and the strong presence of multinational companies. Additionally, Hungary's favorable regulatory environment and skilled workforce make it an attractive location for data center investments, further driving the growth of the Public Cloud Market.

Underlying macroeconomic factors: The Public Cloud Market in Hungary is also affected by macroeconomic factors such as technological advancements, government policies, and investment in IT 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 IT funding. Additionally, the increasing adoption of digitalization in businesses and the growing demand for cost-effective and scalable solutions are driving the demand for public cloud services in Hungary.

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.