Public Cloud - Southeast Asia

Southeast Asia

Revenue in the Public Cloud market in Southeast Asia is projected to reach US$16.39bn in 2024.
Infrastructure as a Service dominates this market in the region, with a projected market volume of US$5.46bn in 2024.
Revenue in Southeast Asia is expected to show an annual growth rate (CAGR 2024-2029) of 20.03%, resulting in a market volume of US$40.83bn by 2029.
In a global context, most revenue will still be generated the United States, which is expected to reach US$388.50bn in 2024.
Southeast Asia is witnessing a surge in public cloud adoption, driven by Malaysia's increasing focus on digital transformation and innovation across various sectors.

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 Southeast Asian Public Cloud market is experiencing significant growth, driven by increasing adoption of digital technologies, growing awareness of the importance of cloud services, and the convenience they offer. This considerable growth rate is impacted by factors such as the growing sub-markets and the benefits of Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery as a Service.

Customer preferences: As technology becomes more integrated into daily life, demand for public cloud services has grown in Southeast Asia. This trend is driven by a shift towards digitization and the need for remote access to data and applications. Businesses and individuals are increasingly turning to the public cloud for its convenience, scalability, and cost-effectiveness. This trend is also reflected in the rise of virtual events and online collaboration tools, as well as the adoption of e-commerce platforms for both business and personal use.

Trends in the market: In Southeast Asia, the Public Cloud Market is experiencing a surge in demand for cloud-based solutions, driven by the region's increasing digitalization and adoption of new technologies. This trend is expected to continue as more businesses look to streamline their operations and reduce IT infrastructure costs. Additionally, there is a growing focus on data privacy and security, leading to the adoption of hybrid cloud solutions. This shift towards cloud computing has significant implications for industry stakeholders, such as cloud providers, as they will need to continuously innovate and adapt to meet the evolving needs of the market. Moreover, businesses in Southeast Asia will need to invest in training and upskilling their workforce to effectively utilize cloud technologies and stay competitive in the market.

Local special circumstances: In Southeast Asia, the Public Cloud market is experiencing rapid growth due to the region's increasing digital transformation and adoption of cloud technologies. However, each country in the region has unique factors that impact the market. For example, in Indonesia, the market is being driven by the government's push for digitalization and the country's large population of young, tech-savvy individuals. In Malaysia, the market is influenced by the country's strong focus on innovation and its favorable regulatory environment for cloud adoption. In Vietnam, the market is seeing growth due to the country's growing e-commerce sector and the need for scalable and cost-effective cloud solutions. These local factors play a crucial role in shaping the Public Cloud market landscape in Southeast Asia.

Underlying macroeconomic factors: The growth of the Public Cloud Market in Southeast Asia is heavily influenced by macroeconomic factors such as government policies, economic stability, and technological advancements. Countries with supportive policies and a strong economy, such as Singapore and Malaysia, are experiencing significant growth in the public cloud market. On the other hand, countries with economic challenges and limited investment in technology, such as Myanmar and Laos, are facing slower market growth. The increasing adoption of digital transformation across industries and the need for cost-effective IT solutions are also contributing to the growth of the public cloud market in the region.

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.