Public Cloud - Eastern Europe

Eastern Europe

Revenue in the Public Cloud market is projected to reach US$7,158.00m in 2024.
Software as a Service dominates the market with a projected market volume of US$2,794.00m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 16.59%, resulting in a market volume of US$15,420.00m by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$60.54 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 Eastern Europe is experiencing steady growth, driven by factors such as increasing adoption of digital technologies, rising awareness of cloud services, and the convenience of online platforms. The market is expected to continue its average growth rate, influenced by the various sub-markets within it.

Customer preferences: As the demand for digital solutions continues to rise in Eastern Europe, the Public Cloud Market market is seeing a shift towards online collaboration and remote work tools. This trend is driven by the increasing popularity of flexible work arrangements and the need for efficient communication and project management in a globalized economy. Furthermore, the adoption of cloud-based services is also fueled by the rising number of tech-savvy millennials in the region, who prioritize convenience and flexibility in their work and personal lives.

Trends in the market: In Eastern Europe, the Public Cloud Market is experiencing a surge in demand for hybrid cloud solutions, as businesses seek to optimize their digital infrastructure and reduce costs. This trend is driven by the increasing adoption of digital transformation strategies and the need for flexible and scalable IT solutions. As a result, cloud service providers are focusing on developing hybrid cloud offerings and expanding their data center presence in the region. This presents significant opportunities for industry stakeholders, including improved efficiency, cost savings, and enhanced data security. However, it also poses challenges, such as data privacy concerns and the need for skilled IT professionals to manage complex hybrid cloud environments. Overall, the trajectory of this trend is expected to continue, with hybrid cloud solutions becoming the preferred choice for businesses in Eastern Europe.

Local special circumstances: In Eastern Europe, the Public Cloud Market is experiencing significant growth due to the region's increasing adoption of digital transformation and modernization initiatives. The market is also influenced by the unique geographical and cultural factors of the region, such as a high demand for cost-effective solutions and a strong emphasis on data security and privacy regulations. Additionally, the region's growing startup ecosystem and government support for innovation are driving the growth of the Public Cloud Market in Eastern Europe.

Underlying macroeconomic factors: The Public Cloud Market in Eastern Europe is greatly impacted by macroeconomic factors such as government policies, economic stability, and investment in digital infrastructure. Countries with favorable regulatory environments and strong support for digital transformation are experiencing rapid growth in the public cloud market, while those with regulatory challenges and limited investment are falling behind. Additionally, the increasing demand for cost-effective and flexible IT solutions, coupled with the growing adoption of cloud-based technologies, is further driving the growth of the public cloud market in Eastern Europe.

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.