Public Cloud - NAFTA

NAFTA

Revenue in the Public Cloud market is projected to reach US$413.10bn in 2024.
Software as a Service dominates the market with a projected market volume of US$197.70bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 18.16%, resulting in a market volume of US$951.30bn by 2029.
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 NAFTA is expected to see steady growth due to factors such as increasing adoption of digital technologies, growing awareness of the benefits of online services, and the convenience offered by cloud-based solutions. The market's average growth rate is impacted by factors such as competition, regulatory changes, and advancements in technology.

Customer preferences: As businesses and organizations across North America continue to adopt cloud-based solutions, there has been a notable shift towards public cloud services. This trend is driven by the need for cost-effective and scalable solutions, as well as the increasing demand for remote work options. With the rise of the gig economy and the growing importance placed on work-life balance, organizations are turning to public cloud services to provide employees with flexible and accessible tools for collaboration and productivity. This demonstrates a cultural shift towards prioritizing convenience and efficiency in the workplace.

Trends in the market: In the Public Cloud Market, there is a growing trend of using cloud-based solutions for data management and storage, as well as for application development and deployment. This trend is driven by the increasing adoption of digitalization across industries, as well as the need for flexible and scalable IT infrastructure. Additionally, the rise of remote work and the shift towards online services due to the COVID-19 pandemic have further accelerated the demand for public cloud services. This trajectory indicates a significant shift towards cloud-based solutions in the coming years, highlighting the importance for industry stakeholders to adapt and invest in this market. Furthermore, with the increasing use of artificial intelligence and Internet of Things technologies, the potential for innovation and growth in the public cloud market is immense. As such, companies that offer public cloud services are likely to see significant revenue growth and increased market share in the future.

Local special circumstances: In Canada and Mexico, the Public Cloud Market is expanding rapidly due to the increasing demand for digital transformation in various industries, such as healthcare and finance. Canada's strong economy and highly educated workforce have made it a hub for cloud computing, attracting major global players to establish their data centers in the country. In Mexico, the market is driven by the government's initiatives to promote digital infrastructure and the growing adoption of e-commerce, leading to a surge in demand for cloud-based solutions. Additionally, both countries have favorable regulatory frameworks for data privacy and security, making them attractive destinations for international cloud providers.

Underlying macroeconomic factors: The Public Cloud Market is greatly impacted by macroeconomic factors such as global economic trends, national economic health, fiscal policies, and financial indicators. Countries with stable economies and favorable business environments are experiencing faster market growth compared to regions with economic challenges and limited investment in technology. Additionally, the increasing demand for digital transformation, data-driven decision making, and cost-effective solutions is driving the adoption of public cloud services in various industries. Moreover, the increasing trend of remote work and digitalization of business processes is also contributing to the growth of the Public Cloud Market. In summary, the market is directly influenced by the overall economic health of a country and its willingness to invest in advanced technological solutions.

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.