Public Cloud - Latvia

Latvia

Revenue in the Public Cloud market is projected to reach US$153.70m in 2024.
Software as a Service dominates the market with a projected market volume of US$60.62m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 20.07%, resulting in a market volume of US$383.50m by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$156.60 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).

For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

The public cloud market in Latvia is experiencing considerable growth, driven by factors such as increasing demand for digital services, growing awareness of the benefits of cloud computing, and the convenience of online platforms. This growth is also influenced by the expanding sub-markets of Infrastructure, Platform, Software, Business Process, and Desktop as a Service. These developments are expected to continue fueling the market's growth rate in the coming years.

Customer preferences: The growing adoption of digital services and remote work arrangements has accelerated the demand for cloud-based solutions in Latvia. With an increasing number of businesses and individuals relying on online tools and platforms, there has been a notable shift towards public cloud services. This trend is driven by the need for flexible and scalable solutions that can support remote operations and enable seamless collaboration. This has also led to a rise in the use of cloud-based communication and collaboration tools, as well as increased investments in cloud security and data protection measures.

Trends in the market: In Latvia, the Public Cloud Market is experiencing a rapid growth due to the increasing adoption of cloud-based solutions by businesses and government agencies. This trend is expected to continue as cloud computing offers cost savings, scalability, and flexibility. Additionally, there is a rising demand for security and data protection, leading to the emergence of hybrid and multi-cloud strategies. This shift towards cloud-based services has significant implications for industry stakeholders, including IT service providers, software vendors, and data centers, who must adapt to meet the evolving needs of their customers. Moreover, it presents opportunities for new players to enter the market and offer specialized cloud services, such as AI and IoT solutions.

Local special circumstances: In Latvia, the Public Cloud Market is experiencing growth due to the country's high internet penetration and the government's efforts to promote digitalization across industries. The market is also influenced by the country's strong IT infrastructure and skilled workforce, which has attracted international cloud service providers to establish a presence in the country. Additionally, the unique cultural characteristics of Latvia, such as a preference for local solutions and data privacy concerns, have shaped the adoption of public cloud services in the market.

Underlying macroeconomic factors: The Public Cloud Market in Latvia is heavily influenced by macroeconomic factors such as the country's economic stability, government policies, and investments in technology infrastructure. With a growing emphasis on digital transformation and cloud adoption, Latvia is experiencing a surge in demand for public cloud services. Additionally, the country's strategic location and favorable business environment make it an attractive market for international cloud service providers. Furthermore, the government's efforts to promote digitalization and innovation in various industries are expected to drive the growth of the Public Cloud Market in Latvia in the coming years.

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.