Public Cloud - Malaysia

Malaysia

Revenue in the Public Cloud market is projected to reach US$1,967.00m in 2024.
Infrastructure as a Service dominates the market with a projected market volume of US$628.80m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 20.52%, resulting in a market volume of US$5,002.00m by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$108.50 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 Malaysia is experiencing significant growth, driven by factors such as increasing adoption of digital technologies, rising awareness of the benefits of online services, and the convenience of cloud-based solutions. The considerable growth rate can be attributed to the various sub-markets within the public cloud, which offer a wide range of services and solutions to meet the diverse needs of businesses. Factors such as cost-effectiveness, scalability, and accessibility are also contributing to the market's growth in Malaysia.

Customer preferences: With the increasing adoption of digital technology, consumers in Malaysia are turning to public cloud solutions for their business needs. This trend is driven by the convenience and cost-effectiveness of cloud services, as well as the need for remote work capabilities. Additionally, cultural values of efficiency and productivity are also contributing to the growing preference for public cloud solutions among businesses in Malaysia.

Trends in the market: In Malaysia, the Public Cloud Market is experiencing a surge in demand for hybrid cloud solutions, with businesses seeking a balance between on-premises and cloud-based infrastructure. This trend is driven by the need for flexibility and cost savings, as well as the growing adoption of digital transformation strategies. As a result, cloud service providers are expanding their offerings to cater to this demand, while also investing in data centers and partnerships to enhance their capabilities. This trajectory indicates a shift towards a more integrated and agile approach to cloud computing, with implications for industry stakeholders such as improved efficiency, scalability, and innovation in the market.

Local special circumstances: In Malaysia, the Public Cloud Market is rapidly growing due to the country's strategic location and strong infrastructure, making it a regional hub for data centers and cloud services. Moreover, Malaysia's multicultural society and English proficiency make it an attractive destination for international businesses seeking to expand their cloud operations. The government's initiatives to promote digital transformation and the increasing adoption of cloud technology by local enterprises are also major drivers of market growth. Additionally, Malaysia's favorable regulatory environment and policies, such as the Digital Free Trade Zone, have further boosted the demand for public cloud services in the country.

Underlying macroeconomic factors: The Public Cloud Market in Malaysia is heavily influenced by macroeconomic factors such as technological advancements, government support, and investment in digital infrastructure. Countries with favorable regulatory environments and strong investment in cloud technologies are experiencing faster market growth compared to regions with regulatory challenges and limited funding for digital infrastructure. Additionally, the increasing demand for cost-effective and scalable cloud solutions across various industries in Malaysia is 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.