Public Cloud - Hungary

Hungary

Revenue in the Public Cloud market is projected to reach US$750.90m in 2024.
Software as a Service dominates the market with a projected market volume of US$348.70m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 20.74%, resulting in a market volume of US$1,927.00m 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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Analyst Opinion

The Public Cloud Market in Hungary is experiencing significant growth, fueled by factors like increasing adoption of digital technologies, rising awareness of cloud services, and the convenience of online solutions. The market's considerable growth rate is driven by the convenience and cost-effectiveness of Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery as a Service.

Customer preferences: Consumers in Hungary are increasingly demanding highly customizable and scalable public cloud solutions to meet their diverse business needs. This is driven by the growing use of data-driven technologies and the need for efficient and cost-effective IT solutions. Additionally, there is a rising trend towards cloud-based collaboration and communication tools, as remote work becomes more prevalent in the country's workforce. This shift towards cloud-based solutions is also influenced by the younger generation's preference for mobility and flexibility in their work and personal lives.

Trends in the market: In Hungary, the Public Cloud Market is experiencing a surge in demand for hybrid cloud solutions. This trend is driven by the need for businesses to balance the benefits of cloud technology with the security and control of on-premise infrastructure. Additionally, there is a growing adoption of multi-cloud strategies to avoid vendor lock-in and optimize costs. These trends indicate a shift towards a more flexible and agile approach to cloud computing, with potential implications for stakeholders such as cloud service providers and IT departments. As the market continues to evolve, it is crucial for stakeholders to adapt and offer innovative solutions to meet the changing needs of businesses in Hungary.

Local special circumstances: In Hungary, the Public Cloud Market is gaining traction due to the country's strategic location at the crossroads of Europe, making it a hub for international businesses. Additionally, the government's favorable policies, such as tax incentives and support for digital transformation, are driving the adoption of cloud services. The country's strong IT infrastructure and a skilled workforce also make it an attractive market for cloud providers. Moreover, the growing trend of digitization in various industries, such as finance and healthcare, is further fueling the demand for cloud solutions in Hungary.

Underlying macroeconomic factors: The Public Cloud Market in Hungary is heavily impacted by macroeconomic factors such as economic growth, government policies, and technological advancements. With a strong and stable economy, Hungary has been able to invest in the development of its public cloud infrastructure, making it an attractive market for providers. Additionally, favorable government policies and support for digital transformation have further fueled the growth of the public cloud market in the country. The increasing adoption of cloud-based solutions by businesses across various industries has also played a significant role in driving market growth. Furthermore, the COVID-19 pandemic has accelerated the demand for cloud services, as businesses and individuals rely on remote working and online activities, further boosting the growth of the public cloud market in Hungary.

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.