Public Cloud

Portugal

Highlights

Revenue in the Public Cloud market is projected to reach US$1.83bn 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 17.58%, resulting in a market volume of US$4.12bn 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 Portugal is experiencing steady growth, driven by factors such as increasing adoption of digital technologies, rising awareness of cloud services, and the convenience of online solutions. The market's average growth rate is influenced by factors such as competitive pricing and the availability of a wide range of cloud services, including Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery as a Service.

Customer preferences: The growing digitalization of businesses and increasing demand for remote work solutions has accelerated the adoption of public cloud services in Portugal. This has also been influenced by a shift towards a more tech-savvy and remote workforce, as well as the need for efficient and cost-effective data storage and management. Additionally, the rise in e-commerce and online shopping has led to a greater reliance on cloud-based platforms for handling transactions and managing online customer data. These trends highlight the importance of a reliable and scalable public cloud infrastructure in meeting the evolving needs of businesses in Portugal.

Trends in the market: In Portugal, the Public Cloud Market is experiencing a surge in demand for Software as a Service (SaaS) solutions, as businesses are increasingly relying on cloud-based applications for their day-to-day operations. This trend is expected to continue as more companies adopt remote working models and seek cost-effective solutions. Additionally, the rise of data analytics and artificial intelligence is driving the adoption of Platform as a Service (PaaS) and Infrastructure as a Service (IaaS) offerings. This presents opportunities for cloud service providers to offer more advanced and specialized services, such as machine learning and IoT solutions, to meet the evolving needs of their clients. However, this trend also poses challenges for traditional IT companies, as they may struggle to keep up with the rapid pace of innovation in the cloud market. Overall, the growth of the Public Cloud Market in Portugal signals a shift towards a more flexible and agile approach to technology, with potential implications for both businesses and IT service providers.

Local special circumstances: In Portugal, the Public Cloud Market is experiencing significant growth due to the country's strong digital infrastructure and favorable regulatory environment. The government has implemented policies to promote the adoption of cloud computing, resulting in a rise in demand from businesses of all sizes. Additionally, the country's location in Europe and its membership in the European Union make it an attractive market for international cloud providers. The increasing awareness and usage of cloud services in Portugal are also influenced by the country's tech-savvy population and high internet penetration rates. These unique local factors have contributed to the rapid growth of the Public Cloud Market in Portugal, making it a promising market for both domestic and international players.

Underlying macroeconomic factors: One of the key macroeconomic factors impacting the Public Cloud Market in Portugal is the government's commitment to promoting digital transformation and innovation. This includes initiatives such as the Digital Agenda for Portugal, which aims to improve the country's digital infrastructure and foster a more competitive and resilient economy. Furthermore, Portugal's strong economic growth and favorable business environment have attracted major global public cloud providers to establish a presence in the country, driving market expansion. Additionally, the growing adoption of cloud-based services in various industries, including banking, healthcare, and retail, is propelling the demand for public cloud solutions in Portugal. These factors, along with the country's strategic location and skilled workforce, are expected to continue driving the growth of the public cloud market in Portugal.

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.