Public Cloud - Malaysia

Malaysia

Revenue in the Public Cloud market in Malaysia is projected to reach US$1,967.00m in 2024.
Infrastructure as a Service is expected to dominate the Malaysian market with a projected market volume of US$609.80m in 2024.
The revenue in Malaysia is anticipated to show an annual growth rate (CAGR 2024-2029) of 20.52%, leading to a market volume of US$5,002.00m by 2029.
In comparison to the global market, the most revenue will be generated the United States, which is expected to reach US$388.50bn in 2024.
Malaysia is witnessing a significant shift towards public cloud adoption, driven by increasing digital transformation initiatives across various sectors.

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 Malaysia is experiencing significant growth, driven by increasing adoption of digital technologies, rising awareness of cloud services, and the convenience offered by online platforms. This growth rate is influenced by the sub-markets' growth, such as Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery as a Service. Factors such as scalability, cost-effectiveness, and flexibility are impacting the overall market, leading to its considerable growth.

Customer preferences: With the rise of remote work and virtual learning, consumers in Malaysia are increasingly prioritizing reliable and secure cloud solutions. This is driven by a growing preference for flexibility and convenience, as well as a need for collaboration tools and reliable data storage. Additionally, the shift towards cloud-based solutions is also influenced by the rise of e-commerce and digital transactions, which require a strong and scalable infrastructure.

Trends in the market: In Malaysia, the Public Cloud Market is experiencing a surge in demand for hybrid cloud solutions, with businesses seeking to optimize costs and improve agility. Additionally, there is a growing trend of local cloud providers partnering with global cloud giants to offer a wider range of services and cater to the increasing need for data localization. This trajectory of partnerships and hybrid solutions is significant for industry stakeholders as it allows for a more diverse and competitive market, while also addressing data sovereignty concerns. Furthermore, with the government's push towards digital transformation, the public cloud market is expected to witness continued growth in Malaysia.

Local special circumstances: In Malaysia, the Public Cloud Market is expanding rapidly due to the country's strategic location and strong government support for digital transformation. The growing adoption of cloud-based solutions is also fueled by the country's diverse population and increasing demand for digital services. Additionally, the government's initiatives to promote digital infrastructure and reduce regulatory barriers have further accelerated the market growth. With a strong focus on digital innovation, Malaysia's Public Cloud Market is poised for continued expansion in the coming years.

Underlying macroeconomic factors: The Public Cloud Market in Malaysia is heavily impacted by macroeconomic factors such as government policies, foreign investment, and economic stability. The country has a strong and growing economy, with a high level of foreign direct investment and a robust infrastructure. These factors have created a favorable environment for the growth of the public cloud market, as businesses and organizations are increasingly turning to cloud-based solutions for cost-effectiveness and scalability. Additionally, the country's strategic location and skilled workforce make it an attractive destination for multinational companies seeking to expand their operations in the region. However, challenges such as data privacy and security concerns and limited local cloud infrastructure may hinder the market's growth potential.

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.