Public Cloud - Western Asia

Western Asia

Revenue in the Public Cloud market is projected to reach US$12.98bn in 2024.
Platform as a Service dominates the market with a projected market volume of US$3.86bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 18.21%, resulting in a market volume of US$29.96bn by 2029.
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

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Analyst Opinion

The Public Cloud market in Western Asia is experiencing average growth, driven by factors such as increasing adoption of digital technologies, rising awareness of cloud services, and the convenience of online solutions. The sub-markets of IaaS, PaaS, SaaS, BPaaS, DaaS, and DRaaS are also contributing to this growth. The region's growth rate is impacted by factors such as government initiatives, technological advancements, and industry collaborations.

Customer preferences: As the adoption of public cloud services continues to grow rapidly, there has been a noticeable shift towards multi-cloud strategies among businesses in Western Asia. This trend is driven by the need for greater flexibility and cost efficiency, as well as the growing popularity of containerization and microservices. Additionally, there is an increasing demand for cloud-based collaboration and communication tools, as remote work becomes more prevalent in the region. These factors highlight the evolving preferences of consumers in the Western Asian market towards more agile and collaborative solutions in the public cloud market.

Trends in the market: In Western Asia, the Public Cloud Market is experiencing a surge in demand for cloud-based services, with businesses and organizations increasingly adopting cloud solutions for data storage, application development, and infrastructure management. This trend is driven by the region's growing digital transformation efforts and the need for cost-effective and scalable IT solutions. As a result, major players in the industry are expanding their presence in the region, offering a wide range of services and solutions tailored to the local market. This trajectory is significant as it not only provides new opportunities for industry stakeholders, but also drives economic growth and innovation in the region. However, it also presents challenges such as data privacy and security concerns, which must be addressed to ensure the effective use of public cloud services in Western Asia.

Local special circumstances: In Western Asia, the Public Cloud market is heavily influenced by the region's strong focus on digital transformation and modernization. Countries such as Saudi Arabia, Qatar, and the United Arab Emirates have invested heavily in developing their digital infrastructure, creating a favorable environment for the adoption of cloud technologies. Additionally, cultural norms and regulations, such as data privacy laws, impact the development and use of public cloud services in the region. For example, in Iran, strict government control over internet access has hindered the growth of the Public Cloud market, while in Israel, a thriving tech ecosystem has led to a high demand for cloud services.

Underlying macroeconomic factors: The growth of the Public Cloud Market is heavily impacted by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with favorable regulatory environments and strong investment in cloud technologies are experiencing rapid market expansion compared to regions with regulatory obstacles and limited funding for digital infrastructure. Additionally, the increasing adoption of cloud services by businesses and the growing demand for remote work solutions in the post-pandemic era are driving the growth of the Public Cloud Market in Western Asia.

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.