Public Cloud - South Korea

South Korea

Revenue in the Public Cloud market is projected to reach €9,230.00m in 2024.
Software as a Service dominates the market with a projected market volume of €3,648.00m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 18.18%, resulting in a market volume of €21,280.00m by 2029.
The average spend per employee in the Public Cloud market is projected to reach €308.60 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 South Korea has experienced significant growth in recent years, driven by various factors such as customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: South Korean customers have shown a strong preference for Public Cloud services due to their scalability, flexibility, and cost-effectiveness. With the Public Cloud, businesses can easily scale their infrastructure up or down based on their needs, allowing them to adapt quickly to changing market conditions. Additionally, Public Cloud services offer a pay-as-you-go pricing model, which allows companies to save costs by only paying for the resources they actually use. These customer preferences have fueled the adoption of Public Cloud services in South Korea.

Trends in the market: One of the key trends in the South Korean Public Cloud market is the increasing demand for hybrid cloud solutions. Many businesses in South Korea are adopting a hybrid cloud approach, which combines the use of Public Cloud services with on-premises infrastructure. This allows companies to leverage the benefits of both environments, such as the scalability and flexibility of the Public Cloud and the security and control of on-premises infrastructure. The demand for hybrid cloud solutions is driven by the need for businesses to have greater control over their data and to meet specific regulatory requirements. Another trend in the South Korean Public Cloud market is the growing adoption of Artificial Intelligence (AI) and Machine Learning (ML) technologies. South Korean businesses are leveraging the power of AI and ML to gain valuable insights from their data, automate processes, and improve decision-making. Public Cloud providers in South Korea are offering AI and ML services, making it easier for businesses to adopt these technologies without the need for significant investment in infrastructure and expertise.

Local special circumstances: South Korea has a highly developed IT infrastructure and a strong emphasis on technology innovation. The country has one of the highest internet penetration rates in the world and a technologically savvy population. This has created a favorable environment for the adoption of Public Cloud services, as businesses and individuals are already familiar with digital technologies and are open to embracing new solutions.

Underlying macroeconomic factors: The South Korean economy has been experiencing steady growth in recent years, driven by industries such as technology, manufacturing, and finance. This growth has created a demand for scalable and cost-effective IT solutions, which Public Cloud services can provide. Additionally, the South Korean government has been actively promoting the adoption of cloud computing as part of its digital transformation initiatives. This has led to increased investments in cloud infrastructure and the development of supportive policies, further driving the growth of the Public Cloud market in South Korea. In conclusion, the Public Cloud market in South Korea is experiencing significant growth due to customer preferences for scalability and cost-effectiveness, the adoption of hybrid cloud solutions and AI/ML technologies, the country's strong IT infrastructure and technology-driven culture, and the supportive macroeconomic factors. As businesses in South Korea continue to embrace digital transformation, the demand for Public Cloud services is expected to further increase in the coming years.

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.