Public Cloud - Taiwan

Taiwan

In Taiwan, revenue in the Public Cloud market is projected to reach US$3,511.00m in 2024.
Software as a Service is set to dominate the market in Taiwan with a projected market volume of US$1,098.00m in 2024.
Revenue in this sector in Taiwan is expected to show an annual growth rate (CAGR 2024-2029) of 18.47%, resulting in a market volume of US$8,193.00m by 2029.
In a global comparison, it is noteworthy that most revenue will be generated the United States, amounting to US$388.50bn in 2024.
Taiwan's public cloud market is rapidly evolving, driven by increasing digital transformation initiatives among local enterprises seeking enhanced operational efficiency and scalability.

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 Taiwan is seeing steady growth, driven by factors such as increased adoption of digital solutions, growing awareness of cloud services in the healthcare sector, and the convenience of online offerings. This growth is influenced by the sub-markets of Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery as a Service. The average growth rate is impacted by factors such as government initiatives promoting digital transformation and the increasing demand for cost-effective and scalable cloud solutions in various industries.

Customer preferences: As Taiwan becomes more digitally connected, consumers are gravitating towards cloud-based solutions for their personal and professional needs. This shift is driven by a desire for convenience and flexibility, as well as the growing importance of online collaboration and remote work. Additionally, with an aging population and rising healthcare costs, there is an increasing demand for telemedicine and virtual healthcare services, leading to a rise in the adoption of cloud-based healthcare solutions. This trend is expected to continue as consumers embrace the benefits of a digital-first approach to healthcare.

Trends in the market: In Taiwan, the Public Cloud Market is experiencing a surge in demand for hybrid cloud solutions, with businesses looking to optimize their IT infrastructure and reduce costs. This trend is expected to continue, as more companies seek to leverage the scalability and flexibility of hybrid cloud environments. Additionally, there is a growing focus on security and compliance in the public cloud, with a rise in the adoption of cloud security solutions. These developments signify the increasing importance of cloud technology in Taiwan's digital transformation and present opportunities for industry stakeholders to provide innovative solutions and services.

Local special circumstances: In Taiwan, the Public Cloud market is experiencing significant growth due to the country's highly developed technology infrastructure and government support for digital transformation. The unique geographical location of Taiwan, situated near major technology hubs in Asia, has also contributed to its rapid adoption of Public Cloud services. Additionally, the country's strong emphasis on innovation and entrepreneurship has fueled the demand for Public Cloud solutions, particularly in the small and medium-sized business sector. The presence of a large number of tech-savvy and digitally literate consumers has also played a significant role in the growth of the Public Cloud Market in Taiwan. Furthermore, the government's strict data privacy laws and regulations have instilled confidence in businesses and consumers, making Taiwan an attractive market for Public Cloud providers.

Underlying macroeconomic factors: The Public Cloud Market in Taiwan is heavily influenced by macroeconomic factors such as government policies, economic stability, and technological advancements. Taiwan's strong economic growth, stable political environment, and well-developed infrastructure make it an attractive market for public cloud services. Additionally, the government's focus on promoting digital transformation and investment in emerging technologies has led to a growing demand for public cloud solutions. Taiwan's strategic location in the Asia-Pacific region also makes it a key player in the global public cloud market, with the potential for further growth as regional economic integration and digitalization continue to accelerate.

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.