Public Cloud - Luxembourg

Luxembourg

In Luxembourg, revenue in the Public Cloud market is projected to reach US$541.10m in 2024.
Software as a Service is expected to dominate the market in Luxembourg with a projected market volume of US$264.60m in 2024.
Revenue in this market is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 18.53%, resulting in a market volume of US$1,266.00m by 2029.
In global comparison, the majority of revenue will be generated the United States, which is projected to reach US$388.50bn in 2024.
Luxembourg's public cloud market is experiencing a notable shift towards enhanced data privacy solutions, reflecting the country's stringent regulatory environment and commitment to cybersecurity.

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 Luxembourg is experiencing steady growth, driven by factors such as increasing adoption of digital technologies, growing awareness of the benefits of cloud services, and the convenience of accessing online solutions. The average growth rate can be attributed to factors such as the availability of various sub-markets, such as Infrastructure as a Service and Business Process as a Service, which cater to different needs and preferences of consumers. Additionally, the government's initiatives to promote digital transformation and the country's strong IT infrastructure also contribute to the market's growth.

Customer preferences: As the adoption of remote work continues to rise in Luxembourg, there is a growing demand for secure and reliable public cloud solutions. This trend is driven by the need for seamless collaboration and access to data, regardless of location. Additionally, there is a shift towards cloud-based applications and services, as individuals and businesses seek cost-effective and scalable solutions. This is further fueled by the increasing availability and affordability of high-speed internet connections in the country.

Trends in the market: In Luxembourg, the Public Cloud Market is experiencing a surge in demand for hybrid cloud solutions, with businesses opting for a combination of public and private cloud services. This trend is driven by the need for flexibility, scalability, and cost savings. Additionally, there is a growing adoption of multi-cloud strategies, with organizations leveraging multiple cloud providers to mitigate risks and achieve better performance. These trends signify a shift towards a more diverse and complex cloud landscape, presenting both opportunities and challenges for stakeholders. For businesses, it means increased choice and customization, but also the need for effective management and integration of multiple platforms. For cloud providers, it means adapting to the evolving needs of their clients and differentiating themselves in a competitive market. Overall, the trajectory of these trends is towards a more diverse and dynamic public cloud market in Luxembourg, with potential implications for the overall digital transformation and innovation landscape in the country.

Local special circumstances: In Luxembourg, the Public Cloud Market has been growing rapidly due to its strategic location in Europe and its favorable business environment. The country's strong data protection laws and high level of internet penetration have attracted major cloud providers to establish their data centers in the country. Additionally, the Luxembourg government has been actively promoting digital transformation and providing incentives for companies to adopt cloud solutions. This unique combination of factors has contributed to the country's thriving public cloud market.

Underlying macroeconomic factors: The Public Cloud Market in Luxembourg is heavily influenced by macroeconomic factors such as technological advancements, government support, and investment in digital infrastructure. Countries with progressive regulatory environments and robust investment in cloud technologies are experiencing rapid market growth, while those with regulatory barriers and limited funding are falling behind. The global trend towards digitization and the increasing demand for efficient and cost-effective solutions are also major drivers of the market. Additionally, Luxembourg's strong economic health and stable fiscal policies make it an attractive location for businesses looking to invest in the public cloud.

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.