Public Cloud - China

China

Revenue in the Public Cloud market is projected to reach US$60.03bn in 2024.
Infrastructure as a Service dominates the market with a projected market volume of US$32.85bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 20.75%, resulting in a market volume of US$154.10bn by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$76.27 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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Analyst Opinion

The Public Cloud market in China is experiencing steady growth, driven by factors such as increasing demand for digital solutions, growing awareness of cloud technology, and the convenience of online services. The market's average growth rate may be influenced by factors such as government regulations, competition among service providers, and the country's overall economic climate.

Customer preferences: With the rise of remote work and the need for efficient collaboration, there has been a growing demand for cloud-based communication and productivity tools in the Public Cloud Market market. This trend is driven by the increasing reliance on virtual meetings and remote project management, as well as the desire for real-time document sharing and cloud storage solutions. As a result, businesses and individuals are turning towards public cloud services to streamline their work processes and improve overall productivity.

Trends in the market: In China, the Public Cloud market is experiencing a surge in demand, driven by the country's rapid digital transformation and increasing adoption of cloud-based technologies by businesses. This trend is expected to continue as the Chinese government promotes the development of digital infrastructure and supports the growth of domestic cloud providers. This presents significant opportunities for industry stakeholders, such as cloud service providers, data center operators, and managed service providers. However, as the market becomes more competitive, stakeholders will need to differentiate their offerings and adapt to the unique needs and preferences of Chinese businesses.

Local special circumstances: In China, the Public Cloud Market is heavily influenced by the country's strict internet censorship laws and regulations. This has led to the emergence of local cloud service providers who are more familiar with navigating these restrictions. Additionally, cultural factors such as the preference for local companies and data privacy concerns also play a significant role in shaping the market. Furthermore, China's vast and diverse geography poses challenges for data center placement, with different regions having varying levels of infrastructure and connectivity. These factors contribute to a unique landscape for the Public Cloud Market in China, setting it apart from other markets around the world.

Underlying macroeconomic factors: The Public Cloud Market in China is heavily influenced by macroeconomic factors such as government policies, economic growth, and technological advancements. China's strong economic growth and increasing digitalization efforts have created a favorable environment for the adoption of public cloud services. Additionally, the Chinese government's support for cloud computing, through initiatives such as the "Internet Plus" action plan, has further boosted the market. Furthermore, the growing demand for cost-effective and scalable technology solutions in various industries has also contributed to the growth of the public cloud market in China.

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.