Public Cloud - Northern Europe

Northern Europe

Revenue in the Public Cloud market is projected to reach US$21.29bn in 2024.
Software as a Service dominates the market with a projected market volume of US$9.74bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 17.69%, resulting in a market volume of US$48.07bn by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$1,152.00 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 Northern Europe is experiencing steady growth, driven by factors such as increasing adoption of digital technologies, growing awareness of cloud services, and the convenience of online offerings. This growth is influenced by the various sub-markets within the region, which are all contributing to the overall average growth rate. Factors such as technological advancements, changing business needs, and competitive pricing are impacting the growth rate of the market.

Customer preferences: Consumers in Northern Europe are increasingly gravitating towards public cloud solutions for their businesses, driven by the need for flexibility, scalability, and cost-effectiveness. This trend is further fueled by the region's strong focus on sustainability and environmental responsibility, with businesses opting for cloud services that offer green computing and energy-efficient solutions. Additionally, the growing adoption of remote work and digital collaboration tools has further accelerated the demand for public cloud services, facilitating seamless communication and collaboration among teams.

Trends in the market: In Northern Europe, the Public Cloud Market is experiencing a surge in demand for cloud-based solutions, driven by the increasing adoption of digital transformation strategies by businesses. This trend is expected to continue as companies seek to improve their agility and cost-effectiveness. Additionally, there is a growing focus on data privacy and security, leading to the emergence of stricter regulations and standards. This presents significant opportunities for cloud service providers to offer compliant and secure solutions. Furthermore, there is a rise in demand for hybrid and multi-cloud solutions, as organizations look to leverage the benefits of both public and private cloud environments. These trends signal a shift towards a more mature and sophisticated market, with implications for industry stakeholders to adapt and innovate to meet the evolving needs of customers.

Local special circumstances: In Northern Europe, the Public Cloud Market is heavily influenced by the region's advanced technological infrastructure and high level of digital literacy among its population. This has resulted in a strong demand for cloud-based services, particularly in the areas of e-commerce, finance, and healthcare. Additionally, the strict data privacy regulations in countries like Germany and Sweden have created a unique environment for cloud providers to operate in, with a focus on data security and compliance. These factors have contributed to the rapid growth of the Public Cloud Market in Northern Europe, making it a highly competitive and innovative market.

Underlying macroeconomic factors: The growth of the Public Cloud Market is also influenced by macroeconomic factors such as technological advancements, regulatory support, and investment in digital infrastructure. Countries with strong government support and investments in digital technologies are experiencing faster market growth compared to regions with limited resources and regulatory barriers. Additionally, the increasing adoption of cloud-based solutions by businesses of all sizes and industries, as well as the growing demand for cost-effective and flexible IT solutions, are driving the growth of the Public Cloud Market in Northern Europe.

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.