Public Cloud - Southern Asia

Southern Asia

In Southern Asia, revenue in the Public Cloud market is projected to reach US$11.99bn in 2024.
Infrastructure as a Service is expected to dominate this market with a projected market volume of US$4.36bn in 2024.
The revenue in Southern Asia is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 23.94%, which would result in a market volume of US$35.07bn by 2029.
In a global context, the majority of revenue will be generated the United States, amounting to US$388.50bn in 2024.
In Southern Asia, particularly India, the public cloud market is rapidly evolving, driven by increasing digital transformation initiatives across diverse industries.

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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Currency

Analyst Opinion

The Southern Asia Public Cloud market has been rapidly expanding, driven by factors such as increasing digitization, growing awareness of digital solutions, and the convenience of online services. This considerable growth rate can be attributed to the adoption of various sub-markets and the overall shift towards cloud-based solutions for business operations.

Customer preferences: The growing adoption of digital technologies and the increasing need for remote work and collaboration have driven the demand for public cloud solutions in Southern Asia. As more businesses and organizations shift towards remote work models, the demand for cloud-based tools and services has surged. This trend is also fueled by the region's rapidly growing population, which has a high proportion of tech-savvy and digitally connected individuals. Furthermore, the shift towards cloud-based solutions is driven by the need for cost-effective and scalable options, as well as the desire for seamless access to data and applications from any location.

Trends in the market: In Southern Asia, the Public Cloud Market is experiencing a surge in demand for cloud-based solutions, with more businesses adopting cloud computing to improve operational efficiency and reduce costs. This trend is expected to continue as the region's digital transformation and e-commerce boom create a need for scalable and secure IT infrastructure. Additionally, there is a growing focus on data privacy and security, leading to an increase in the adoption of hybrid cloud solutions. This shift towards a hybrid cloud model allows businesses to balance their need for agility and control, making it a compelling option for organizations in the region. For industry stakeholders, this trend presents an opportunity to tap into a rapidly growing market and offer tailored cloud solutions to meet the evolving needs of businesses in Southern Asia. However, it also poses challenges, such as the need for skilled professionals and regulatory compliance, that must be addressed to fully realize the potential of the Public Cloud Market in the region.

Local special circumstances: In Southern Asia, the Public Cloud market is experiencing rapid growth due to the region's increasing tech-savvy population and the government's initiatives to promote digital transformation. The market is also influenced by unique cultural and regulatory factors, such as the preference for local cloud providers and data privacy regulations. In addition, the diverse geography of the region presents challenges for cloud infrastructure deployment, creating opportunities for local players to provide tailored solutions.

Underlying macroeconomic factors: The Public Cloud Market in Southern Asia is significantly impacted by macroeconomic factors such as government policies, economic stability, and technological advancements. Countries with strong economic growth and favorable policies towards cloud computing are experiencing faster market growth compared to those with regulatory challenges and limited investment in IT infrastructure. Furthermore, the increasing demand for data storage and processing solutions, driven by the growing digital economy and adoption of emerging technologies, is 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.