Public Cloud - South Korea

South Korea

In South Korea, revenue in the Public Cloud market is projected to reach US$9,953.00m in 2024.
The Software as a Service market dominates this market within the country, with a projected market volume of US$3,759.00m in 2024.
Revenue in South Korea is expected to exhibit an annual growth rate (CAGR 2024-2029) of 17.94%, leading to a market volume of US$22,710.00m by 2029.
In a global context, the majority of revenue will be generated the United States, amounting to US$388.50bn in 2024.
In South Korea, the Public Cloud market is experiencing significant growth as enterprises increasingly adopt cloud solutions to enhance digital transformation initiatives.

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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Analyst Opinion

The Public Cloud market in South Korea is experiencing steady growth, driven by factors such as increasing adoption of digital technologies, rising demand for online services, and the convenience offered by cloud-based solutions. Despite facing competition from traditional IT services, the market is expected to continue its average growth rate, supported by the growing popularity of Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery as a Service offerings.

Customer preferences: As South Korea continues to embrace digital transformation, consumers are increasingly turning to public cloud services for their business and personal needs. This trend is driven by a growing preference for convenience and efficiency, as well as the need for remote work and collaboration in the wake of the pandemic. Additionally, the country's tech-savvy population and advanced IT infrastructure make it an ideal market for the adoption of public cloud solutions.

Trends in the market: In South Korea, the Public Cloud Market is experiencing a surge in demand for hybrid cloud solutions, as companies seek to optimize their IT infrastructure and reduce costs. This trend is expected to continue, as more businesses look to embrace digital transformation and shift towards a cloud-first approach. Additionally, there is a growing focus on data security and compliance, leading to increased adoption of managed public cloud services. These trends highlight the importance of cloud computing in driving business growth and competitiveness in South Korea, and present opportunities for cloud service providers to expand their offerings and cater to the evolving needs of clients.

Local special circumstances: In South Korea, the Public Cloud market is heavily influenced by the country's advanced digital infrastructure and high internet penetration rate. The government's strong support for digital transformation initiatives has also played a crucial role in driving the market growth. Additionally, South Korea's strong cultural emphasis on technology and innovation has created a highly receptive market for cloud services. Furthermore, the country's strict data privacy regulations have instilled a sense of trust and security among users, contributing to the growth of the Public Cloud market.

Underlying macroeconomic factors: The Public Cloud Market in South Korea is heavily influenced by macroeconomic factors, such as the country's strong economic health, supportive fiscal policies, and increasing investments in digital infrastructure. South Korea's highly developed technological landscape and advanced regulatory environment have created a favorable market for public cloud services. Additionally, the increasing adoption of cloud-based solutions by businesses and government agencies is driving the demand for public cloud services in the country. The global trend towards digital transformation and the need for efficient and cost-effective data storage and management solutions also contribute to the growth of the public cloud market in South Korea.

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.