Public Cloud - Asia

Asia

Revenue in the Public Cloud market is projected to reach US$137.80bn in 2024.
Infrastructure as a Service dominates the market with a projected market volume of US$54.29bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 20.03%, resulting in a market volume of US$343.30bn by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$65.57 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 Asia 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. The average growth rate of the market can be attributed to a combination of factors, including the sub-markets of Infrastructure, Platform, Software, Business Process, and Desktop as a Service, which are all contributing to the overall growth of the market.

Customer preferences: As the demand for digital transformation and remote work continues to grow in Asia, there has been a notable increase in the adoption of public cloud services. This can be attributed to the cultural preference for convenience and efficiency, as well as the increasing availability of high-speed internet and mobile devices. Additionally, the rise of small and medium-sized enterprises in the region has also led to a surge in demand for cost-effective and scalable cloud solutions.

Trends in the market: In Asia, the Public Cloud Market is experiencing a surge in demand for Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) solutions. This is driven by the increasing adoption of digital transformation strategies by businesses, as well as the rise of data-driven technologies such as artificial intelligence and Internet of Things. As a result, major players in the market are expanding their offerings to include these services, while smaller players are emerging to cater to niche segments. This trend is expected to continue, with potential implications for industry stakeholders including increased competition, innovation, and potential for consolidation.

Local special circumstances: In Asia, the Public Cloud Market is experiencing rapid growth due to the region's strong economic growth and increasing adoption of digital technologies. In China, the market is driven by the government's support for cloud computing and the country's large population of internet users. In Japan, the market is influenced by the cultural preference for data privacy and security, leading to a high demand for private cloud solutions. In Singapore, the market is shaped by the country's strict data protection laws and its position as a hub for international business, driving the demand for secure and compliant public cloud services.

Underlying macroeconomic factors: The expansion of the Public Cloud Market in Asia is largely impacted by macroeconomic factors such as government initiatives, technological advancements, and the overall economic health of the region. Countries with favorable regulatory environments and a strong focus on digital transformation are experiencing significant growth in the market. Moreover, the rise in adoption of cloud services by businesses for cost-savings and scalability is driving market growth. Additionally, the increasing demand for data storage and analysis capabilities in industries such as healthcare, finance, and retail is further fueling the growth of the Public Cloud Market in 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.