Public Cloud - Mexico

Mexico

Revenue in the Public Cloud market is projected to reach US$8,438.00m in 2024.
Infrastructure as a Service dominates the market with a projected market volume of US$2,371.00m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 17.60%, resulting in a market volume of US$18,980.00m by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$140.50 in 2024.
In global comparison, most revenue will be generated in the United States (US$388.50bn in 2024).

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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Market

Region

Region comparison

Currency

Analyst Opinion

The Public Cloud market in Mexico is experiencing significant growth and development, driven by several key factors.

Customer preferences: Mexican businesses are increasingly adopting Public Cloud solutions due to their flexibility, scalability, and cost-effectiveness. The ability to access computing resources on-demand and pay only for what is used is particularly attractive to small and medium-sized enterprises (SMEs) in Mexico. Additionally, the Public Cloud allows businesses to quickly deploy new applications and services, enabling them to innovate and stay competitive in the rapidly evolving digital landscape.

Trends in the market: One of the major trends in the Mexican Public Cloud market is the increasing demand for Software-as-a-Service (SaaS) solutions. SaaS offers businesses the ability to access and use software applications over the internet, eliminating the need for costly infrastructure and maintenance. This trend is driven by the growing awareness among Mexican businesses about the benefits of SaaS, such as reduced upfront costs, automatic updates, and seamless integration with other cloud services. Another trend in the market is the rising popularity of hybrid cloud solutions. Hybrid cloud combines the benefits of both Public and Private Cloud environments, allowing businesses to leverage the scalability and cost-effectiveness of the Public Cloud while maintaining control over sensitive data and applications in a private, on-premises environment. This trend is driven by the need for data privacy and compliance with local regulations, as well as the desire to optimize performance and cost-efficiency.

Local special circumstances: Mexico has a rapidly growing digital economy, with a large and young population that is increasingly connected to the internet. This creates a fertile ground for the adoption of Public Cloud solutions, as businesses seek to leverage the power of cloud computing to reach and serve this expanding customer base. Additionally, the Mexican government has been actively promoting the use of digital technologies, including the Public Cloud, to drive economic growth and improve public services.

Underlying macroeconomic factors: Mexico is experiencing steady economic growth, with a stable political environment and a growing middle class. This economic stability provides a favorable business environment for the adoption of Public Cloud solutions, as businesses have the financial resources and confidence to invest in new technologies. Furthermore, the increasing globalization of Mexican businesses and the need to compete in the global market are driving the demand for scalable and cost-effective IT infrastructure, which the Public Cloud provides. In conclusion, the Public Cloud market in Mexico is experiencing strong growth and development, driven by customer preferences for flexible and cost-effective solutions, trends such as the adoption of SaaS and hybrid cloud, local special circumstances including a growing digital economy and government support, and underlying macroeconomic factors such as economic stability and globalization. As businesses in Mexico continue to embrace digital transformation, the Public Cloud market is expected to further expand and evolve to meet their evolving needs.

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.