Public Cloud - United Kingdom

United Kingdom

Revenue in the Public Cloud market is projected to reach US$34.18bn in 2024.
Software as a Service dominates the market with a projected market volume of US$17.06bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 19.38%, resulting in a market volume of US$82.87bn by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$983.60 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 United Kingdom has been experiencing significant growth in recent years.

Customer preferences: Customers in the United Kingdom have shown a strong preference for Public Cloud services due to their scalability, cost-effectiveness, and flexibility. With the increasing adoption of digital technologies and the need for remote work solutions, businesses in the United Kingdom have been turning to Public Cloud providers to meet their infrastructure and software needs. Additionally, the availability of a wide range of services and applications in the Public Cloud has made it an attractive option for businesses of all sizes.

Trends in the market: One of the key trends in the Public Cloud market in the United Kingdom is the increasing adoption of hybrid cloud solutions. Businesses are leveraging a combination of Public Cloud services and on-premises infrastructure to create a flexible and scalable IT environment. This allows them to take advantage of the benefits of Public Cloud while maintaining control over sensitive data and applications. Another trend is the growing demand for industry-specific cloud solutions. As businesses in the United Kingdom seek to optimize their operations and comply with industry regulations, they are turning to Public Cloud providers that offer specialized solutions tailored to their specific needs.

Local special circumstances: The United Kingdom has a strong digital economy and is home to many innovative startups and established enterprises. The presence of a vibrant tech ecosystem, coupled with favorable government policies and initiatives, has created a conducive environment for the growth of the Public Cloud market. The United Kingdom also has a highly skilled workforce, which further fuels the adoption of Public Cloud services as businesses look to leverage advanced technologies and enhance their digital capabilities.

Underlying macroeconomic factors: The United Kingdom has been witnessing a shift towards digital transformation across various industries. This is driven by factors such as the need for increased efficiency, improved customer experience, and the rise of remote work. The COVID-19 pandemic has further accelerated this trend, with businesses in the United Kingdom realizing the importance of cloud-based solutions to ensure business continuity and enable remote work. Additionally, the United Kingdom has a strong regulatory framework that promotes data privacy and security, which aligns with the value proposition of Public Cloud providers. In conclusion, the Public Cloud market in the United Kingdom is experiencing significant growth due to customer preferences for scalability, cost-effectiveness, and flexibility. The adoption of hybrid cloud solutions and industry-specific cloud offerings are key trends in the market. The United Kingdom's strong digital economy, favorable government policies, and skilled workforce contribute to the growth of the Public Cloud market. The shift towards digital transformation and the need for remote work solutions, coupled with a robust regulatory framework, are underlying macroeconomic factors driving the growth of the Public Cloud market in the United Kingdom.

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.