Public Cloud - Luxembourg

Luxembourg

Revenue in the Public Cloud market is projected to reach US$541.10m in 2024.
Software as a Service dominates the market with a projected market volume of US$273.40m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 18.53%, resulting in a market volume of US$1,266.00m by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$1,536.00 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 Luxembourg 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 of cloud-based solutions. This growth is influenced by the average growth rate of the sub-markets of Infrastructure, Platform, Software, Business Process, and Desktop as a Service. The market is impacted by factors such as government initiatives, technological advancements, and the demand for flexible and cost-effective solutions.

Customer preferences: As Luxembourg continues to establish itself as a leading hub for the Public Cloud Market, there has been a noticeable shift towards cloud-based solutions for businesses of all sizes. This trend is driven by the increasing demand for cost-effective and scalable IT infrastructure, as well as the growing reliance on remote work and collaboration tools. Moreover, there has been a rise in the adoption of artificial intelligence and machine learning technologies, as companies seek to streamline their operations and improve efficiency in an increasingly competitive market.

Trends in the market: In Luxembourg, the Public Cloud Market is experiencing a surge in demand for Software-as-a-Service (SaaS) solutions, as businesses seek cost-effective and scalable options for their IT needs. Additionally, there is a growing trend towards hybrid cloud solutions, combining the benefits of both public and private clouds. This trend is expected to continue as companies look for more flexibility and control over their data. These developments have significant implications for industry stakeholders, as they must adapt to meet the changing needs of their clients and stay competitive in the market. This includes investments in infrastructure and partnerships with cloud providers to stay ahead of the curve and cater to the evolving demands of the market.

Local special circumstances: In Luxembourg, the Public Cloud Market is thriving due to the country's strong position as a financial hub and its advanced digital infrastructure. The government's favorable policies and investments in technology have attracted major cloud service providers to establish their data centers in the country. Additionally, the local population's high level of digital literacy and the presence of multinational companies have created a demand for secure and efficient cloud solutions. This unique combination of factors has propelled Luxembourg's Public Cloud Market forward, making it a leader in the European market.

Underlying macroeconomic factors: The Public Cloud Market in Luxembourg is heavily influenced by macroeconomic factors such as global economic trends, national economic health, fiscal policies, and financial indicators. For instance, countries with stable economies and favorable fiscal policies are experiencing faster growth in the market compared to regions with economic challenges and limited government support for cloud technology. Additionally, the increasing demand for digital transformation in various industries and the growing adoption of cloud-based solutions by businesses are driving the growth of the Public Cloud Market in Luxembourg. Moreover, the government's initiatives to promote digitalization and investments in infrastructure to support cloud technology are also contributing to the market's growth.

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.