Public Cloud - LATAM

LATAM

Highlights

Revenue in the Public Cloud market in LATAM is projected to reach US$29.11bn in 2025.
Platform as a Service is expected to dominate the market within LATAM, with a projected market volume of US$8.30bn in 2025.
Revenue in this sector is anticipated to exhibit an annual growth rate (CAGR 2025-2029) of 17.85%, leading to a market volume of US$56.15bn by 2029.
In a global context, the majority of revenue will be generated the United States, amounting to US$466.06bn in 2025.
As Brazil continues to enhance its digital infrastructure, the demand for public cloud services is rapidly evolving, reflecting a growing inclination towards cloud-native solutions.

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

Revenue

Notes: Data was converted from local currencies using average exchange rates of the respective year.

Most recent update:

Source: Statista Market Insights

Revenue Change

Average Spend per Employee

Notes: Data was converted from local currencies using average exchange rates of the respective year.

Most recent update:

Source: Statista Market Insights

Analyst Opinion

The Public Cloud Market in LATAM is experiencing significant growth, driven by factors such as increasing adoption of digital technologies, rising awareness of the benefits of cloud computing, and the convenience of online services. The market's considerable growth rate can be attributed to the growing demand for Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery as a Service, highlighting the region's embrace of cloud solutions for various business needs.

Customer preferences: As the demand for improved efficiency and cost savings grows in the public cloud market in LATAM, there is a noticeable shift towards the adoption of artificial intelligence and machine learning technologies. This is driven by the need for more streamlined and automated processes, as well as the increasing availability of data and the desire for data-driven decision making. Furthermore, there is a growing preference for cloud-native applications and services, as companies strive to modernize their IT infrastructure and stay ahead of the competition.

Trends in the market: In LATAM, the Public Cloud Market is experiencing a surge in demand for cloud-based solutions, driven by the increasing adoption of digital transformation initiatives by businesses. This trend is expected to continue in the coming years, with a significant focus on hybrid and multi-cloud environments. This shift towards cloud-based solutions has significant implications for industry stakeholders, including increased competition among cloud service providers and the need for businesses to prioritize data security and compliance in their cloud strategies. Additionally, the rise in demand for cloud-based solutions is also fueling the growth of managed service providers in the region.

Local special circumstances: In LATAM, the Public Cloud Market is experiencing significant growth due to the region's increasing digitization and adoption of cloud technologies. However, each country presents unique local factors that influence market dynamics. For example, in Mexico, the government's efforts to modernize public services and promote digital transformation have driven the demand for cloud services. In Argentina, the market is driven by the country's large and growing e-commerce sector, which relies heavily on cloud infrastructure. Additionally, in Colombia, the growing startup ecosystem and the government's support for entrepreneurship have led to increased adoption of cloud solutions in the business sector. These local factors highlight the diverse opportunities and challenges facing the Public Cloud Market in different countries in LATAM.

Underlying macroeconomic factors: The Public Cloud market in LATAM is greatly influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with favorable regulatory environments and strong investment in digital technologies are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Additionally, the increasing demand for digital solutions to improve business efficiency and reduce costs is driving the adoption of public cloud services in the region. The growing e-commerce sector and the rise of digital transformation initiatives are also contributing to the expansion of the Public Cloud market in LATAM.

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.

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Software as a Service - statistics & facts

Together with platform as a service (PaaS) and infrastructure as a service (IaaS), software as a service (SaaS) is one of the three primary tiers of cloud computing. It allows businesses to redirect resources away from IT hardware, software, and personnel expenses, and towards other business needs. Currently, the most prominent companies in the SaaS market are Microsoft, Salesforce, Oracle, SAP, and Google.

Public Cloud - LATAM

Revenue

Key Players

Analyst Opinion

Global Comparison

Methodology

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