Public Cloud - Nordics

Nordics

Revenue in the Public Cloud market in the Nordics is projected to reach US$20.74bn in 2024.
Software as a Service dominates this market within the Nordics, with a projected market volume of US$9.34bn in 2024.
Revenue in the Nordics is expected to show an annual growth rate (CAGR 2024-2029) of 17.64%, resulting in a market volume of US$46.73bn by 2029.
In global comparison, most revenue will be generated the United States, amounting to US$388.50bn in 2024.
Nordic countries are increasingly prioritizing sustainability in their public cloud strategies, driving demand for eco-friendly data center solutions and services.

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 the Nordics is expected to continue its average growth rate, driven by factors such as increasing adoption of digital technologies, rising awareness of cloud services, and the convenience of online platforms. This growth is also influenced by the various sub-markets within the Public Cloud, such as Infrastructure as a Service, Platform as a Service, and Software as a Service. Additionally, the demand for Business Process as a Service, Desktop as a Service, and Disaster Recovery as a Service is also contributing to the overall growth of the market.

Customer preferences: The Nordics have seen a growing demand for public cloud services, driven by a shift towards remote work and digital transformation. This trend is reinforced by the region's tech-savvy population and strong digital infrastructure. Additionally, there is a rising demand for cloud-based collaboration tools and remote learning solutions, as well as increased interest in data privacy and security. This highlights the importance of reliable and secure public cloud services in the Nordic market.

Trends in the market: In the Nordics, the Public Cloud Market is experiencing a surge in demand for multi-cloud solutions, with businesses increasingly utilizing multiple cloud providers for their varying needs. This trend has significant implications for industry stakeholders, as it offers greater flexibility and cost-effectiveness, but also presents challenges in managing and securing data across different platforms. Additionally, there is a growing trend towards serverless computing, where cloud providers manage the infrastructure and developers only pay for the resources they use. This has the potential to greatly simplify application development and deployment, but also raises concerns about vendor lock-in and potential security risks. Overall, these trends are shaping the landscape of the Public Cloud Market in the Nordics and emphasize the need for businesses to carefully consider their cloud strategy and choose the right partners.

Local special circumstances: In the Nordics, the Public Cloud Market is experiencing significant growth due to the region's strong digital infrastructure and tech-savvy population. The market is also influenced by the region's strict data privacy laws, which have led to a high demand for secure and compliant cloud solutions. Additionally, the cultural emphasis on sustainability and green initiatives has driven the adoption of environmentally friendly cloud services. The government's support for digital transformation and innovation has also played a key role in shaping the market dynamics.

Underlying macroeconomic factors: The Public Cloud Market in the Nordics is also impacted by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with strong government support and investment in cloud technologies are experiencing faster market growth compared to regions with limited government support and infrastructure. Additionally, the increasing adoption of digital technologies and the rise of remote work due to the COVID-19 pandemic have also contributed to the demand for cloud services in the Nordics.

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.