Public Cloud - Chile

Chile

Revenue in the Public Cloud market is projected to reach US$1,130.00m in 2024.
Software as a Service dominates the market with a projected market volume of US$379.50m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 18.64%, resulting in a market volume of US$2,656.00m by 2029.
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

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Analyst Opinion

The Public Cloud market in Chile is experiencing significant growth, propelled by factors such as increasing adoption of digital technologies, growing awareness of cloud services among businesses, and the convenience offered by online cloud solutions. The market is comprised of various sub-markets, each contributing to the overall growth. However, the average growth rate is impacted by factors such as limited infrastructure, concerns over data security, and the need for skilled professionals. Despite these challenges, the Public Cloud market in Chile is expected to continue its steady growth in the coming years.

Customer preferences: The growing adoption of remote work and virtual learning due to the pandemic has accelerated the demand for cloud-based collaboration and communication tools in Chile. This has led to a rise in the use of public cloud services, as organizations and individuals seek flexible and scalable solutions to support their remote work and education needs. Additionally, the increasing availability of high-speed internet and the government's push for digitalization are also driving the growth of the public cloud market in Chile.

Trends in the market: In Chile, the Public Cloud Market is experiencing a surge in demand due to the increasing adoption of cloud computing among businesses. This trend is driven by the need for cost efficiency, scalability, and flexibility in IT infrastructure. Additionally, the COVID-19 pandemic has accelerated the shift to cloud-based solutions as remote work became the new norm. This trajectory is significant as it marks a shift towards digital transformation in the country's business landscape. It also presents opportunities for cloud service providers to expand their market presence and offerings. However, it also poses challenges for traditional IT companies, as they may struggle to keep up with the pace of technological advancements in the cloud industry. Therefore, industry stakeholders need to stay updated on the latest trends and innovations to stay competitive in the rapidly evolving Public Cloud Market in Chile.

Local special circumstances: In Chile, the Public Cloud Market is experiencing significant growth due to the country's stable economy and supportive government policies. Chile's well-developed telecommunications infrastructure and high internet penetration rate have also contributed to the market's success. Additionally, the country's strict data privacy regulations have helped build trust in cloud services among businesses and consumers. Furthermore, Chile's unique geography, with its long coastline and mountainous terrain, has led to the adoption of cloud services for disaster recovery and remote work solutions.

Underlying macroeconomic factors: The growth of the Public Cloud Market in Chile is also influenced by macroeconomic factors such as technological advancements, government policies, and investments in digital infrastructure. Countries with favorable regulatory environments and strong investment in digital technologies are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Additionally, the increasing adoption of cloud computing by businesses of all sizes is driving the demand for public cloud services in the country, as it offers cost-effective and scalable solutions for data storage and management. This trend is expected to continue as Chile's economy continues to grow and businesses increasingly prioritize digital transformation.

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.