Public Cloud - United Kingdom

United Kingdom

Revenue in the Public Cloud market is projected to reach US$34.18bn in 2024.
Software as a Service dominates the market with a projected market volume of US$17.06bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 19.38%, resulting in a market volume of US$82.87bn by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$983.60 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).

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Analyst Opinion

The Public Cloud market in the United Kingdom is experiencing steady growth, driven by factors such as the increasing adoption of digital technologies, growing awareness of the benefits of online services, and convenience for businesses. The market's average growth rate is influenced by factors such as the availability of Infrastructure, Platform, Software, Business Process, and Desktop as a Service options, which cater to various needs and contribute to the overall market growth.

Customer preferences: As technology becomes more integrated into daily life, consumers in the United Kingdom are increasingly relying on public cloud services for their digital needs. This trend is driven by a desire for convenient and efficient access to data and applications, as well as a growing awareness of the benefits of remote work and collaboration. Additionally, the rise of digital transformation initiatives in various industries has led to an increased demand for scalable and flexible cloud solutions. This shift towards cloud-based solutions is also influenced by the cultural values of efficiency and innovation, as well as the changing demographics of an increasingly tech-savvy population.

Trends in the market: In the United Kingdom, the Public Cloud Market is experiencing a surge in adoption of hybrid cloud solutions, as organizations seek to balance cost-efficiency and flexibility. This trend is expected to continue, with a projected CAGR of 19.8% from 2021 to 2028. This shift towards hybrid cloud models has significant implications for industry stakeholders, as it allows for greater scalability and agility while also addressing security concerns. Additionally, there is a growing trend towards multi-cloud strategies, with organizations utilizing multiple cloud providers to meet their specific needs. This trend is expected to drive market competition and innovation, as well as providing customers with more options and flexibility.

Local special circumstances: In the United Kingdom, the Public Cloud Market is experiencing significant growth due to the country's advanced technological infrastructure and high adoption of cloud-based services. The market is also influenced by the UK government's efforts to promote digital transformation in various industries, resulting in increased demand for cloud solutions. Additionally, the UK's strict data protection laws and regulations, such as the General Data Protection Regulation (GDPR), have a significant impact on the market's dynamics and drive the adoption of secure cloud services.

Underlying macroeconomic factors: The Public Cloud Market in the United Kingdom is heavily impacted by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with supportive regulatory environments and robust investment in digital technologies are witnessing significant growth in the Public Cloud Market. In contrast, regions with regulatory challenges and limited funding for digital infrastructure are experiencing slower market growth. Furthermore, the rising prevalence of chronic diseases and the aging population in the UK are driving the demand for public cloud solutions to improve access to critical healthcare services and enhance overall health outcomes.

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.