Public Cloud - Israel

Israel

Revenue in the Public Cloud market is projected to reach US$3,026.00m in 2024.
Software as a Service dominates the market with a projected market volume of US$1,519.00m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 19.53%, resulting in a market volume of US$7,384.00m by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$671.00 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 Public Cloud Market in Israel is experiencing steady growth, driven by factors such as increasing adoption of digital technologies, rising awareness of the benefits of cloud services, and the convenience of online solutions. The market's average growth rate is impacted by factors such as increased demand for Infrastructure, Platform, Software, Business Process, and Desktop as a Service.

Customer preferences: As Israel continues to embrace technological advancements, the public cloud market has seen a rise in demand for remote work and virtual collaboration tools. This is fueled by a growing number of startups and small businesses, as well as the need for businesses to adapt to the remote work culture. Additionally, the Israeli population's strong focus on education and innovation has led to an increasing adoption of online learning platforms and e-learning solutions, further driving the growth of the public cloud market.

Trends in the market: In Israel, the Public Cloud Market is experiencing a surge in demand, driven by the increasing adoption of cloud-based technologies across industries. This trend is expected to continue on an upward trajectory, with a projected market size of $1.7 billion by 2025. This growth is significant as it presents opportunities for industry stakeholders, such as cloud service providers and businesses, to capitalize on the market's potential. Additionally, the shift towards cloud-based solutions has implications for traditional on-premise software providers, as they may need to adapt their offerings to remain competitive in the market.

Local special circumstances: In Israel, the Public Cloud Market has experienced rapid growth due to the country's highly skilled workforce and advanced technological infrastructure. Additionally, the Israeli government has been supportive of the cloud computing industry, providing incentives for companies to establish their operations in the country. This, coupled with the country's high adoption rate of technology, has led to a thriving public cloud market in Israel. Furthermore, the country's unique geopolitical landscape and close ties with the United States have also played a role in attracting international cloud providers to establish a presence in Israel.

Underlying macroeconomic factors: The Public Cloud Market in Israel is heavily influenced by macroeconomic factors such as government policies, investment in technology, and economic stability. The country's strong focus on innovation and technology, along with government support for the digital economy, has created a favorable environment for the growth of the Public Cloud Market. Additionally, Israel's strong economic growth and stability have attracted significant investments from global players, further driving the market's growth. Furthermore, the country's highly skilled workforce and favorable business climate have also contributed to the market's success, making Israel a leading player in the global Public Cloud Market.

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.