Public Cloud - United Kingdom

United Kingdom

Revenue in the Public Cloud market is projected to reach €31.69bn in 2024.
Software as a Service dominates the market with a projected market volume of €15.50bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 19.63%, resulting in a market volume of €77.66bn by 2029.
In global comparison, most revenue will be generated in the United States (€360.20bn 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 has been experiencing steady growth, driven by increasing adoption of digital technologies, rising awareness of cloud services, and the convenience of online solutions. The market's average growth rate is influenced by various factors, including the sub-markets of Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery as a Service.

Customer preferences: As the use of digital technology becomes more integrated into daily life, consumers in the United Kingdom are increasingly relying on public cloud services for their business and personal needs. This shift is driven by a desire for flexible and cost-effective solutions, as well as a growing preference for remote work and collaboration. Additionally, the rise of the gig economy and freelance work has created a demand for on-demand access to cloud-based tools and platforms. This trend is expected to continue as the UK's workforce becomes more digitally savvy and mobile.

Trends in the market: In the United Kingdom, the Public Cloud market is experiencing a surge in adoption, driven by the increasing demand for agile and cost-effective IT solutions. This trend is expected to continue, with a projected growth rate of 11.7% by 2026. With the rise of remote work and digital transformation, the significance of public cloud services has become more prominent, enabling organizations to scale and innovate quickly. This trend also has implications for industry stakeholders, as they must adapt to the changing landscape and invest in cloud-based technologies to stay competitive. Additionally, the move towards hybrid and multi-cloud environments is also on the rise, indicating a shift towards a more diverse and flexible approach to cloud computing.

Local special circumstances: In the United Kingdom, the Public Cloud Market is driven by the country's strong digital infrastructure and government support for digital transformation. The market is also influenced by strict data privacy regulations, leading to a higher demand for secure and compliant cloud solutions. Additionally, the UK's growing startup ecosystem and adoption of cloud-based technologies by small and medium-sized enterprises contribute to the market's growth. These local factors differentiate the UK market from others and play a significant role in shaping its dynamics.

Underlying macroeconomic factors: The performance of the Public Cloud Market in the United Kingdom is heavily influenced by macroeconomic factors, such as global economic trends, national economic health, and fiscal policies. The country's stable economy and strong investment in digital infrastructure have created a favorable environment for the growth of the public cloud market. Moreover, the increasing adoption of cloud-based technologies by UK enterprises, driven by the need for cost efficiency and flexibility, is also contributing to the market's growth. However, challenges such as Brexit and potential changes in data privacy regulations could impact the market's growth in the future.

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.