Public Cloud - Southeast Asia

Southeast Asia

Revenue in the Public Cloud market is projected to reach US$16.39bn in 2024.
Infrastructure as a Service dominates the market with a projected market volume of US$5.63bn in 2024.
Revenue 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.
The average spend per employee in the Public Cloud market is projected to reach US$47.19 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

Region

Region comparison

Currency

Analyst Opinion

The Public Cloud market in Southeast Asia is seeing rapid growth, driven by factors such as increasing adoption of digital technologies, rising awareness of the benefits of online services, and the convenience of cloud-based solutions. This growth is further fueled by the high demand for Infrastructure, Platform, Software, Business Process, and Desktop as a Service offerings. The market's considerable growth rate can be attributed to the region's strong focus on digital transformation and the need for cost-effective and scalable solutions.

Customer preferences: As Southeast Asia continues to embrace the benefits of cloud technology, there has been a notable shift towards the adoption of public cloud services. This can be attributed to the cultural preference for cost-effective and scalable solutions, as well as the increasing demand for remote work and online collaboration tools. Demographic shifts towards a younger and tech-savvy population have also played a role in driving the growth of the public cloud market. Furthermore, the current lifestyle trends of convenience and connectivity have further fueled the demand for cloud-based services, as consumers look for easy and seamless access to data and applications.

Trends in the market: In Southeast Asia, the Public Cloud Market is experiencing a surge in demand for hybrid cloud solutions, as companies seek to balance cost efficiency with data security. This trend is expected to continue, with hybrid cloud adoption projected to grow at a CAGR of 22% in the region. This shift towards hybrid cloud also reflects a greater focus on digital transformation and the need for businesses to be agile and adaptable in the face of evolving market dynamics. This presents opportunities for industry stakeholders to offer innovative solutions and services to support this trend and capitalize on the evolving cloud market in Southeast Asia.

Local special circumstances: In Southeast Asia, the Public Cloud market is seeing significant growth due to the region's rapid digital transformation and growth in e-commerce. In countries like Indonesia and Vietnam, the market is driven by the increasing adoption of mobile devices and the government's push for digitalization. However, in countries like Myanmar and Laos, the market is still in its infancy due to limited internet access and infrastructure. Additionally, cultural factors, such as a preference for in-person interactions and concerns over data privacy, may also impact the market's development in this region.

Underlying macroeconomic factors: The Public Cloud Market in Southeast Asia is greatly affected by macroeconomic factors such as technological advancements, government policies, and investments in digital infrastructure. Countries with supportive regulatory environments and high investments in digital technologies are experiencing significant growth in the market, while those with regulatory challenges and limited funding are struggling to keep up. Furthermore, the rising prevalence of chronic diseases and aging populations in the region are driving the demand for public cloud solutions to improve access to services and enhance overall efficiency in the healthcare sector.

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.