Public Cloud

Mexico

Highlights

Revenue in the Public Cloud market is projected to reach US$8.44bn in 2024.
Infrastructure as a Service dominates the market with a projected market volume of US$2.29bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 17.60%, resulting in a market volume of US$18.98bn by 2029.
In global comparison, most revenue will be generated United States (US$388.50bn in 2024).

Key regions:

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

The Public Cloud market in Mexico is experiencing significant growth, driven by factors such as increasing adoption of digital technologies, rising awareness about the benefits of online services, and the convenience offered by cloud solutions. The market's substantial growth rate can be attributed to the demand for Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery services. Factors such as cost-effectiveness, scalability, and flexibility are impacting the growth rate of this market in Mexico.

Customer preferences: Consumers in Mexico are increasingly adopting cloud-based solutions to store and access their personal and professional data, leading to a surge in demand for public cloud services. This trend is driven by the growing tech-savvy population and the need for remote work and collaboration tools. Additionally, the rise of e-commerce and digital payments is fueling the demand for secure and scalable cloud infrastructure to support the online retail sector.

Trends in the market: In Mexico, the Public Cloud Market is experiencing a surge in demand for cloud-based solutions, with businesses increasingly turning to the cloud for cost-effective and scalable options. This trend is expected to continue, driven by the rapid growth of e-commerce and the need for remote work solutions. As a result, we can expect to see an increase in the adoption of cloud computing technologies, such as infrastructure-as-a-service (IaaS) and software-as-a-service (SaaS). This trajectory will have a significant impact on industry stakeholders, as it offers new opportunities for growth and innovation. However, it may also create challenges for traditional IT companies, as they will need to adapt to the changing landscape and compete with global cloud providers. Additionally, the rise of the public cloud market in Mexico could also have implications for data privacy and security, as companies will need to ensure compliance with local regulations and protect sensitive information stored in the cloud. Overall, the current trend towards public cloud adoption in Mexico presents both opportunities and challenges for industry stakeholders, making it a market to watch closely in the coming years.

Local special circumstances: In Mexico, the Public Cloud market is experiencing significant growth due to the country's increasing adoption of digital technologies and government initiatives to promote digital transformation. The market is also influenced by the unique regulatory environment, with data privacy laws and government regulations impacting cloud adoption. Additionally, Mexico's geographical location and trade agreements with the US and Canada make it an attractive location for international cloud service providers to establish a presence, further driving market growth.

Underlying macroeconomic factors: The growth of the Public Cloud Market is greatly impacted by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with supportive regulatory environments and strong investments in digital transformation are experiencing rapid market growth, while countries with regulatory barriers and limited financial support are experiencing slower growth. Furthermore, the increasing adoption of cloud-based solutions for data storage and management, as well as the rising demand for efficient and cost-effective IT solutions, are driving the growth of the Public Cloud Market in Mexico.

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.