Public Cloud - Canada

Canada

Revenue in the Public Cloud market is projected to reach €15.03bn in 2024.
Software as a Service dominates the market with a projected market volume of €8.01bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 18.94%, resulting in a market volume of €35.77bn by 2029.
The average spend per employee in the Public Cloud market is projected to reach €689.50 in 2024.
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 Canada has been experiencing significant growth in recent years.

Customer preferences: Canadian businesses are increasingly adopting public cloud services due to several key factors. Firstly, the scalability and flexibility offered by public cloud providers allow businesses to easily adjust their computing resources based on their needs. This is particularly beneficial for companies with fluctuating workloads or seasonal demands. Additionally, the cost-effectiveness of public cloud services is attractive to businesses of all sizes. By utilizing public cloud infrastructure, companies can avoid the upfront costs of purchasing and maintaining their own hardware, as well as the expenses associated with data center management. Furthermore, the ability to access data and applications from anywhere at any time is highly valued by Canadian businesses, as it enables remote work and enhances collaboration.

Trends in the market: One of the key trends in the Canadian public cloud market is the increasing adoption of hybrid cloud solutions. Many businesses are opting for a combination of public and private cloud environments to leverage the benefits of both. This allows them to keep sensitive data and critical applications on private infrastructure while taking advantage of the scalability and cost savings offered by public cloud providers. Another trend is the growing demand for industry-specific cloud solutions. Canadian businesses in sectors such as healthcare, finance, and government have unique compliance and security requirements, and cloud providers are developing specialized offerings to cater to these needs. Furthermore, there is a rising demand for cloud-based artificial intelligence (AI) and machine learning (ML) services in Canada. Organizations are leveraging these technologies to gain insights from their data, automate processes, and enhance customer experiences.

Local special circumstances: Canada's data sovereignty laws and regulations have had a significant impact on the public cloud market. The Personal Information Protection and Electronic Documents Act (PIPEDA) requires that personal information be stored and processed in Canada, which has led to the establishment of data centers by major cloud providers within the country. This has given Canadian businesses confidence in the security and compliance of their data. Additionally, the Canadian government has been actively promoting the adoption of cloud services through initiatives such as the Canadian Digital Service and the Cloud Adoption Strategy. These efforts have helped create an environment conducive to cloud adoption and innovation.

Underlying macroeconomic factors: The strong growth of the Canadian public cloud market can be attributed to several macroeconomic factors. Firstly, Canada has a highly developed and technologically advanced economy, with businesses across various sectors recognizing the importance of digital transformation. The increasing digitization of processes and the need for efficient data storage and management have fueled the demand for public cloud services. Additionally, the COVID-19 pandemic has accelerated the adoption of cloud technologies, as businesses have had to quickly adapt to remote work and the need for scalable and secure infrastructure. The government's focus on innovation and investment in digital infrastructure has also played a role in driving the growth of the public cloud market in Canada.

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.