Public Cloud Market Overview:
Public Cloud Market size is estimated to reach $1.6 trillion by 2030, growing at a CAGR of 16.2% during the forecast period 2023-2030. Rapidly increasing digital transformation among industries, cost savings as companies don't need to invest in infrastructure, being easily scalable and flexible, and ease of use by any industry or any individual are propelling the public cloud market's growth.
Since COVID-19 began, 61% of businesses migrated their work to the cloud in 2020 alone. Public cloud services offer cost savings compared to traditional on-premises IT infrastructure, as companies only pay for the resources used and there is no need to invest in expensive hardware and software. It lets businesses quickly and easily increase or decrease their computing resources based on changing their needs. Public cloud services are accessible from any Internet-connected location. This allows working remotely and collaborating with others possible. Public cloud service providers are continuously innovating and releasing new services, which can assist businesses in staying ahead of the competition and assist organizations in protecting critical data.
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COVID-19 / Ukraine Crisis - Impact Analysis:
β’ The outbreak of COVID-19 caused widespread disruption across various industries, forcing companies to adopt remote work and online services to maintain business continuity. As businesses attempted to harness the scalability and flexibility of public cloud platforms to support their digital transformation efforts, demand for cloud services increased. As a result, the public cloud market expanded significantly, with prominent providers such as Amazon, Azure, and GCP experiencing increased demand for their services. Businesses who had already been using cloud services before to the pandemic were able to quickly scale up their operations to meet the additional needs, while others hastened their cloud adoption plans in order to offer remote work and digital services. The pandemic has highlighted the relevance of digital transformation and cloud computing in today's business landscape, and the public cloud market is likely to expand in the post-pandemic future.
β Ukraine's ongoing conflict with Russia has implications for the public cloud market. Due to economic sanctions and political instability, some cloud service providers have scaled back operations or delayed investments in the Ukrainian market as geopolitical tensions continue to rise. Nevertheless, the crisis has increased demand for cloud services as firms in Ukraine and surrounding regions seek to modernize their IT infrastructure and move to digital operations less prone to physical disruption. This has created an opportunity for public cloud providers to extend their services in the region and fulfill rising demand.
Key Takeaways:
β Fastest Growth of Asia Pacific Region
Geographically, in the global public cloud market share, Asia Pacific is analyzed to grow with the highest CAGR of 17% during the forecast period of 2023β2030. The increasing number of small and medium-sized enterprises (SMEs), favorable government policies, and advancements in cloud technology are all driving the Public Cloud Market in the Asia Pacific region.
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Furthermore, the APAC region belongs to some of the world's fastest-growing economies, including China, India, and Southeast Asia, which will boost the region's Public Cloud market growth. For instance, in November 2022, Amazon announced it would invest $4.4 billion in the South Asia region by 2030 to widen its cloud market.
β SME's Dominates the Public Cloud Market
According to the public cloud market analysis, small and medium-sized companies (SMEs) would own 59.1% of the market in 2022. This is due to the CSPs' flexible pricing, which eliminates the need for expensive hardware, maintenance, and updates. Small and medium-sized businesses (SMEs) can use public cloud services to scale up and down as needed, gain access to expertise and infrastructure, and protect their data with modern security measures.
β Big Data and Analytics Drives the Market
Big data refers to the huge and complex data sets generated by enterprises, while analytics is the process of analysing and understanding this data in order to obtain insights and make better decisions. Public cloud providers offer a wide range of services that empower businesses to efficiently handle and analyze extensive amounts of data. These services encompass storage, processing capabilities, and analytical tools, enabling organizations to effectively manage and derive insights from their data. These technologies can assist businesses in identifying patterns and trends, optimizing processes, improving customer experiences, and discovering new opportunities.
For instance, a survey done by BCG in 2019 found that an Australian airline was able to save US$40 million in annual fuel costs by using cloud-based analytics to simulate tens of thousands of flight patterns and create more efficient routes.
β PaaS Segment to Register the Fastest Growth
In the Public Cloud Market analysis, the Platform as a Service (PaaS) segment is estimated to grow at the highest CAGR of 17.1% during the forecast period. PaaS delivers pre-built tools and services to developers, allowing them to design, test, and deploy applications more efficiently than IaaS or SaaS. IaaS and SaaS are more general-purpose, meaning developers must spend more time configuring and managing the infrastructure or software.
β Security and Privacy as a Major Challenge
A report published by Check Point in 2022 states that 27% of organizations have experienced a public cloud security incident, up 10% from last year. The issue of security and privacy is one of the most significant challenges in the public cloud business. As more enterprises migrate their data and applications to the cloud, they must guarantee that sensitive information is protected and comply with data privacy laws and regulations. This issue worsens because public cloud providers often have several clients sharing the same infrastructure, raising the risk of data breaches and cyber-attacks.
