Public Cloud

Philippines

Highlights

Revenue in the Public Cloud market is projected to reach US$1.36bn in 2024.
Infrastructure as a Service dominates the market with a projected market volume of US$458.80m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 24.14%, resulting in a market volume of US$4.01bn by 2029.
In global comparison, most revenue will be generated United States (US$388.50bn in 2024).

Key regions:

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 definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Public Cloud market in Philippines has been experiencing significant growth, driven by factors such as increasing adoption of digital technologies, rising awareness about cloud services, and the convenience of online platforms. The considerable growth rate can be attributed to the accessibility and cost-effectiveness of different sub-markets, such as Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery as a Service. This has resulted in a high demand for cloud services in the country, leading to the market's impressive growth.

Customer preferences: As the Philippines continues to embrace digitalization, there has been a growing demand for cloud-based solutions in the public sector. This shift is fueled by the need for efficient and cost-effective systems to improve government services and processes. Additionally, with the rise of remote work and virtual learning, there is an increasing reliance on public cloud services for data storage, collaboration, and communication. This trend is expected to continue as the country's digital infrastructure and accessibility to technology improves.

Trends in the market: In the Philippines, the Public Cloud market is experiencing a surge in demand for hybrid cloud solutions, as businesses seek to optimize their operations and reduce costs. This trend is expected to continue, with the country's digital transformation initiatives and growing adoption of cloud computing. This shift towards hybrid cloud models also presents opportunities for local cloud service providers to offer customized solutions tailored to the unique needs of Filipino businesses. However, this trend may also pose challenges for traditional IT providers who will need to adapt to the changing market landscape.

Local special circumstances: In the Philippines, the Public Cloud Market is experiencing rapid growth due to the country's favorable regulatory environment and strong government support for digital transformation. The archipelago's geography, with over 7,000 islands, has also led to a high demand for cloud services, particularly in remote areas with limited physical infrastructure. Additionally, the country's young and tech-savvy population has embraced cloud technology, driving the demand for public cloud solutions.

Underlying macroeconomic factors: The Public Cloud Market in the Philippines is heavily influenced by macroeconomic factors such as the country's economic growth and government policies. As the Philippines continues to experience economic growth, there is an increase in demand for cloud services in various industries. The government's support for the digitalization of businesses and investments in technology also contributes to the growth of the public cloud market. Furthermore, the rise of e-commerce and the digital economy in the country further drives the demand for cloud services, as businesses require efficient and scalable solutions to support their online operations. However, challenges such as internet connectivity and cybersecurity concerns may hinder the market's growth. As the country continues to address these challenges, the public cloud market is expected to experience significant growth in the coming years.

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.