Public Cloud - Philippines

Philippines

Revenue in the Public Cloud market is projected to reach US$1,360.00m in 2024.
Infrastructure as a Service dominates the market with a projected market volume of US$479.00m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 24.13%, resulting in a market volume of US$4,008.00m by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$28.29 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 Philippines has been experiencing significant growth in recent years, driven by a combination of customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in the Philippines are increasingly adopting Public Cloud solutions due to their scalability, cost-effectiveness, and flexibility. With the rapid digital transformation taking place in various industries, businesses are looking for ways to streamline their operations and leverage the benefits of cloud computing. Public Cloud providers offer a wide range of services, including infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS), catering to the diverse needs of customers.

Trends in the market: One of the key trends in the Public Cloud market in the Philippines is the growing demand for hybrid cloud solutions. Many businesses are adopting a hybrid cloud approach, combining the use of both Public Cloud and private infrastructure, to achieve a balance between security and scalability. This trend is driven by the need to securely store sensitive data on private servers while leveraging the scalability and cost benefits of the Public Cloud. Another trend in the market is the increasing adoption of cloud-native technologies, such as containers and microservices. These technologies enable businesses to develop and deploy applications more efficiently, making it easier to scale and update their software. As more organizations in the Philippines embrace digital transformation, the demand for cloud-native solutions is expected to continue growing.

Local special circumstances: The Philippines is a rapidly developing country with a growing digital economy. The government has been actively promoting the adoption of cloud computing as part of its digital transformation agenda. Initiatives such as the Philippine Digital Transformation Strategy and the National Broadband Plan aim to improve the country's digital infrastructure and encourage the use of cloud services. These efforts have created a favorable environment for the growth of the Public Cloud market in the Philippines.

Underlying macroeconomic factors: The Philippines has a young and tech-savvy population, which is driving the demand for digital services, including cloud computing. The country's strong economic growth and increasing internet penetration rates have also contributed to the expansion of the Public Cloud market. As businesses in various sectors, such as e-commerce, finance, and healthcare, continue to embrace digital technologies, the demand for Public Cloud services is expected to grow further. In conclusion, the Public Cloud market in the Philippines is experiencing significant growth due to customer preferences for scalable and cost-effective solutions, trends such as the adoption of hybrid cloud and cloud-native technologies, local special circumstances including government initiatives, and underlying macroeconomic factors such as a growing digital economy and tech-savvy population. As the market continues to evolve, it presents opportunities for both local and international Public Cloud providers to expand their presence and cater to the increasing demand for cloud services in the Philippines.

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.