Public Cloud - Portugal

Portugal

Revenue in the Public Cloud market is projected to reach US$1,832.00m in 2024.
Platform as a Service dominates the market with a projected market volume of US$609.20m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 17.57%, resulting in a market volume of US$4,116.00m by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$335.00 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

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Analyst Opinion

The Public Cloud Market in Portugal is experiencing steady growth, driven by factors such as increasing adoption of digital technologies, growing awareness of the benefits of cloud services, and the convenience of online solutions. This growth is further supported by the sub-markets, which offer a range of services to meet different business needs. The average growth rate of the market is influenced by factors such as government initiatives to promote digital transformation and the increasing demand for cost-effective and scalable IT solutions.

Customer preferences: As the use of digital technology becomes more prevalent in Portugal, consumers are increasingly turning towards Public Cloud services for their personal and professional needs. This trend is driven by a desire for more efficient and flexible solutions, as well as the need for remote access and collaboration. Additionally, the rise of remote work and virtual events has accelerated the adoption of Public Cloud services among businesses and individuals alike. This shift towards a more digital and connected lifestyle is expected to continue driving growth in the Public Cloud market in Portugal.

Trends in the market: In Portugal, the Public Cloud Market is experiencing a surge in demand for hybrid cloud solutions, as companies seek to balance cost efficiency and data security. This trend is expected to continue as more businesses adopt a hybrid cloud strategy to meet their evolving needs. Additionally, there is a growing focus on multi-cloud management, as organizations look to optimize their cloud usage and avoid vendor lock-in. These trends have significant implications for industry stakeholders, such as cloud service providers and IT departments, who must adapt to meet the changing demands of the market. It also highlights the importance of offering flexible and scalable cloud solutions to cater to the diverse needs of businesses in Portugal.

Local special circumstances: In Portugal, the Public Cloud Market is thriving due to the country's strategic location as a hub for European data centers. This has led to a surge in demand for cloud services from multinational companies looking to establish a presence in Europe. Additionally, the country's relatively low cost of living and highly skilled IT workforce make it an attractive location for cloud service providers. Furthermore, Portugal's pro-business policies and favorable tax incentives have created a favorable environment for the growth of the Public Cloud Market.

Underlying macroeconomic factors: The Public Cloud Market in Portugal is heavily impacted by macroeconomic factors such as the country's economic stability, government policies, and global economic trends. With Portugal's growing economy and favorable business environment, there has been a significant increase in the adoption of public cloud services. Additionally, the country's investment in digital infrastructure and supportive regulatory policies have further accelerated the market growth. However, the economic downturn caused by the COVID-19 pandemic has also affected the market, with businesses cutting back on their IT spending. Nonetheless, with the increasing demand for remote work solutions and digital transformation, the Public Cloud Market in Portugal is expected to bounce back and continue its growth trajectory.

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.