Public Cloud - Israel

Israel

In Israel, revenue in the Public Cloud market is projected to reach US$3,026.00m in 2024.
Software as a Service is expected to dominate the market withIsrael, with a projected market volume of US$1,467.00m in 2024.
Revenue in this market is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 19.53%, resulting in a market volume of US$7,384.00m by 2029.
In a global context, the highest revenue generation will occur the United States, which is expected to reach US$388.50bn in 2024.
Israel's public cloud market is experiencing rapid growth, driven by its vibrant tech ecosystem and increasing demand for digital transformation among businesses.

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 Israel is witnessing significant growth, fueled by factors such as increasing adoption of digital technologies, growing awareness about the benefits of cloud services, and the convenience offered by online services. The market's average growth rate is impacted by factors such as the availability of reliable infrastructure, government initiatives to promote digital transformation, and the growing demand for efficient and cost-effective business solutions.

Customer preferences: The rise of remote work due to the COVID-19 pandemic has accelerated the adoption of public cloud solutions in Israel. This trend has been further fueled by the country's strong tech infrastructure and digital culture. As more businesses and individuals rely on remote work and virtual collaboration, demand for scalable and cost-effective cloud services has grown. This shift towards a more digital and agile workforce is expected to continue driving growth in the public cloud market in Israel.

Trends in the market: In Israel, the Public Cloud Market is experiencing a surge in demand for cloud services, driven by the increasing adoption of cloud-based solutions by businesses. This trend is expected to continue in the coming years, with a projected annual growth rate of 20%. This has significant implications for industry stakeholders, as it opens up opportunities for cloud service providers to expand their offerings and cater to the growing market. Additionally, the rise of cloud computing is also leading to the development of new technologies and innovations, further driving the growth of the market. With Israel being a hub for technology startups, the growing demand for cloud services is expected to fuel the growth of the overall tech industry in the country.

Local special circumstances: In Israel, the Public Cloud Market is flourishing due to the country's highly skilled workforce and advanced technological infrastructure. The region's strong emphasis on innovation and entrepreneurship has also contributed to the growth of this market. Additionally, Israel's strict data privacy regulations and security standards have made it a trusted location for cloud computing services. This combination of factors has made Israel a hub for startups and multinational corporations alike, resulting in a highly competitive and dynamic Public Cloud Market.

Underlying macroeconomic factors: The growth of the Public Cloud Market is also influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with strong government support and investment in digital technologies are experiencing faster market growth compared to regions with limited resources and regulatory challenges. Additionally, the increasing demand for cost-effective and scalable solutions is driving the adoption of public cloud services, especially in the wake of the COVID-19 pandemic. The growing emphasis on digital transformation and the need for remote work and collaboration are also contributing to the growth of the public cloud market in Israel.

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.