Public Cloud - Sri Lanka

Sri Lanka

In Sri Lanka, revenue in the Public Cloud market is projected to reach US$256.70m in 2025.
Infrastructure as a Service is expected to dominate the market in Sri Lanka with a projected market volume of US$84.32m in 2025.
Revenue in Sri Lanka is anticipated to show an annual growth rate (CAGR 2025-2029) of 7.82%, resulting in a market volume of US$346.90m by 2029.
In a global context, most revenue will be generated the United States, amounting to US$466.10bn in 2025.
Sri Lanka's public cloud market is increasingly recognized for its potential, as businesses seek agile solutions to enhance digital transformation and operational efficiency.

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 Sri Lanka is experiencing steady growth, driven by factors such as increasing adoption of digital technologies, growing awareness of the benefits of online services, and the convenience offered by cloud solutions. However, the subdued growth rate may be impacted by factors such as limited infrastructure, lack of awareness of specific sub-markets, and challenges in data security and privacy.

Customer preferences: The rapid growth of e-commerce in Sri Lanka has led to a surge in demand for secure and reliable cloud services. As online shopping becomes increasingly popular, consumers are prioritizing data privacy and security, leading to a rise in the adoption of public cloud solutions. Additionally, with the increasing availability of high-speed internet and advancements in technology, businesses and individuals are turning to the public cloud for its cost-effectiveness and scalability. This trend is expected to continue as more businesses shift towards digitalization and remote work models.

Trends in the market: In Sri Lanka, the Public Cloud market is experiencing a surge in demand for hybrid cloud solutions, as businesses are seeking a balance between cost-efficiency and security. This trend is expected to continue, with hybrid cloud adoption projected to increase significantly in the coming years. This shift towards hybrid cloud is significant as it allows organizations to leverage the benefits of both public and private cloud environments. It also has implications for stakeholders such as cloud service providers, who may need to adapt their offerings to meet this demand, and businesses who will need to carefully consider their cloud strategy to optimize their operations.

Local special circumstances: In Sri Lanka, the Public Cloud Market is experiencing rapid growth due to the government's push for digital transformation and the increasing adoption of cloud-based solutions by businesses. The country's strong IT infrastructure and growing tech-savvy population are also contributing factors. However, Sri Lanka's unique geographical and cultural landscape, coupled with regulatory challenges, can impact market dynamics. For instance, the country's high vulnerability to natural disasters requires robust disaster recovery and backup solutions, while its diverse language and cultural preferences may affect the adoption of certain cloud services.

Underlying macroeconomic factors: The Public Cloud Market in Sri Lanka is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. As the country continues to develop and modernize, there is a growing demand for cloud-based services to support businesses and drive economic growth. Additionally, the increasing adoption of digital technologies and the rise of e-commerce in Sri Lanka are creating a favorable environment for the growth of the Public Cloud Market. Furthermore, the government's initiatives to promote digital transformation and improve ICT infrastructure are expected to further boost the market in the coming years.

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.