Public Cloud - Germany

Germany

Revenue in the Public Cloud market is projected to reach US$32.08bn in 2024.
Software as a Service dominates the market with a projected market volume of US$16.60bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 17.59%, resulting in a market volume of US$72.11bn 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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Analyst Opinion

The Public Cloud market in Germany is on track for significant growth, driven by increasing adoption of digital technologies, growing awareness of the benefits of online services, and the convenience of cloud-based solutions. The market's average growth rate is impacted by factors such as the availability of Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery as a Service options.

Customer preferences: As Germany continues to embrace digitalization, consumers are increasingly turning to public cloud services to improve efficiency and reduce costs. This trend is particularly evident in the growing demand for cloud-based collaboration tools and project management software. Furthermore, the rise of remote working and virtual teams has also fueled the adoption of cloud solutions, as businesses seek to enable seamless communication and collaboration among distributed teams.

Trends in the market: In Germany, the Public Cloud Market is experiencing a surge in adoption, with businesses increasingly leveraging cloud solutions to drive digital transformation and agility. This trend is driven by the need for remote work capabilities and cost optimization. Furthermore, there is a growing trend of hybrid cloud adoption, as companies seek to balance the benefits of public and private clouds. This trajectory is significant as it highlights the increasing importance of cloud computing in the German market and its potential to drive business growth. For industry stakeholders, this trend presents opportunities for partnerships and innovation in cloud services. However, it also poses challenges in terms of data security and regulatory compliance. As the public cloud market continues to evolve, it is crucial for stakeholders to stay updated on emerging trends and adapt their strategies accordingly.

Local special circumstances: In Germany, the Public Cloud market is heavily influenced by the country's strict data privacy laws and regulations. This has created a unique market dynamic, with a strong emphasis on data security and protection. Additionally, Germany's strong economy and high adoption of digital technologies have contributed to the rapid growth of the Public Cloud market. The country's large and diverse industrial sector has also played a significant role in driving demand for cloud services, particularly in the areas of manufacturing and logistics. These local factors make Germany a highly attractive market for Public Cloud providers, with significant potential for continued growth.

Underlying macroeconomic factors: The Public Cloud Market in Germany is significantly impacted by macroeconomic factors such as digitalization efforts, government support, and investment in technology infrastructure. With a strong focus on digitalization and a supportive regulatory environment, Germany is experiencing rapid growth in the Public Cloud Market. Furthermore, the country's stable economic health and robust fiscal policies create a favorable environment for market growth. As more businesses shift towards digital transformation, the demand for public cloud services in Germany is expected to continue to rise.

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.