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$9.53bn 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.
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

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Analyst Opinion

The Public Cloud market in Northern Europe is experiencing steady growth, driven by factors such as increased adoption of digital technologies, growing awareness of the benefits of online services, and the convenience they offer. The market's average growth rate is influenced by the various sub-markets within it, each with their own unique impact on the overall market.

Customer preferences: The growing demand for flexible and scalable IT solutions has led to a rise in the adoption of public cloud services in Northern Europe. This trend is further fueled by the region's tech-savvy population and the push towards remote work and digitalization in the wake of the pandemic. As a result, there has been an increase in the use of cloud-based collaboration tools and virtual meeting platforms, highlighting a shift towards a more digitally-driven lifestyle. Additionally, the preference for pay-per-use models and cost-effective solutions in the region has also contributed to the growth of the public cloud market.

Trends in the market: In Northern Europe, there is a growing trend towards using public cloud services for data storage and management. This trend is primarily driven by the increasing demand for cost-efficient and scalable solutions, as well as the rise of remote work and digital transformation initiatives. As a result, many businesses and organizations are migrating their IT infrastructure to the public cloud, leading to a significant increase in the adoption of cloud-based services. This trend is expected to continue in the coming years, with the potential to disrupt the traditional IT landscape and create new opportunities for industry stakeholders. For example, cloud service providers can capitalize on this trend by offering specialized services and solutions tailored to the unique needs of Northern European businesses. Additionally, the increased use of public cloud services can also lead to improved collaboration, data accessibility, and innovation within the region's business ecosystem.

Local special circumstances: In Northern Europe, the Public Cloud Market is thriving due to the region's strong government support for digital transformation and advanced technology adoption. The high level of internet penetration and tech-savvy population also contribute to the market growth. Additionally, the strict data privacy regulations in countries like Germany and Sweden drive the demand for secure and compliant cloud solutions. In Scandinavian countries, the strong emphasis on sustainability and renewable energy sources has led to the emergence of green cloud providers, catering to the growing demand for environmentally friendly solutions.

Underlying macroeconomic factors: The Public Cloud Market in Northern Europe is heavily influenced by macroeconomic factors such as technological advancements, government support, and investments in digital infrastructure. Countries with favorable regulatory environments and strong investment in cloud computing technologies are experiencing faster market growth compared to regions with regulatory challenges and limited funding for digital solutions. Additionally, the increasing demand for cost-effective and scalable data storage, coupled with the rise of remote work and digital transformation, are major drivers of the Public Cloud Market in the region.

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.