Public Cloud - Iceland

Iceland

Revenue in the Public Cloud market is projected to reach US$184.30m in 2024.
Software as a Service dominates the market with a projected market volume of US$73.60m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 21.46%, resulting in a market volume of US$487.20m by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$729.90 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 Iceland is experiencing substantial growth, driven by factors such as increasing adoption of digital technologies, rising awareness of the benefits of cloud services, and the convenience of accessing services online. This growth is further fueled by the availability of various sub-markets, each catering to specific needs of businesses and individuals. The country's favorable business environment and supportive government policies also contribute to the market's rapid growth rate.

Customer preferences: As Iceland continues to position itself as a leader in renewable energy, consumer preferences in the Public Cloud Market market are shifting towards environmentally friendly solutions. This is reflected in the growing demand for cloud services that use renewable energy sources, such as geothermal and hydro power. Additionally, there is a trend towards cloud providers offering sustainability reports and certifications, as consumers become more conscious of the environmental impact of their digital activities.

Trends in the market: In Iceland, the Public Cloud Market is experiencing a surge in demand for cloud-based services, driven by the increasing adoption of digital transformation strategies by businesses. This trend is expected to continue as more organizations recognize the benefits of cloud computing, such as cost savings, scalability, and improved efficiency. Additionally, the Icelandic government's initiatives to promote the use of cloud services are further propelling the growth of the market. This presents opportunities for industry stakeholders, such as cloud service providers, to expand their offerings and cater to the evolving needs of businesses. However, the trend also brings challenges, such as data security and regulatory compliance, which stakeholders must address to maintain the trust of their clients. As the Public Cloud Market in Iceland continues to evolve, it is crucial for stakeholders to stay updated on the latest trends and adapt their strategies accordingly to stay competitive in the market.

Local special circumstances: In Iceland, the Public Cloud Market is influenced by the country's small population and its focus on renewable energy sources. This has led to a strong emphasis on sustainability in the market, with many companies opting for green cloud solutions. Additionally, Iceland's unique geographical location has made it a prime location for data centers, attracting major cloud providers like Microsoft and Amazon. The country's strict data privacy laws and high internet penetration rates have also contributed to the growth of the Public Cloud Market in Iceland, making it a favorable environment for cloud services.

Underlying macroeconomic factors: The Public Cloud Market in Iceland is heavily influenced by macroeconomic factors such as the country's economic stability, government policies, and global economic trends. Iceland's strong economic growth and stable political climate have attracted foreign investment, leading to a robust market for public cloud services. Additionally, the country's focus on digitalization and its highly skilled workforce have created a favorable environment for the adoption and growth of public cloud technologies. Iceland's strategic location between Europe and North America also makes it an ideal location for data centers, further driving the growth of the public cloud market.

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.