The latest report from IDC highlights significant growth in the public cloud services market across the EMEA (Europe, Middle East, and Africa) region, driven by technological innovations and strategic investments in cloud-based infrastructure. The report details several key statistics and trends shaping this rapidly evolving sector.
According to IDC, the public cloud services market, which encompasses Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS), is anticipated to generate revenues of approximately $203.0 billion by 2024. Furthermore, projections indicate that this market could expand to a staggering $415.1 billion by 2028, marking a compound annual growth rate (CAGR) of 20.0 percent from 2023 to 2028.
SaaS remains the dominant segment within the public cloud services market, expected to represent 64.4 percent of the total market revenue in 2024. This category includes various applications and system infrastructure software. Meanwhile, PaaS is emerging as the fastest-growing segment, with a projected CAGR of 29.3 percent through 2028, closely followed by IaaS which is forecasted to grow at a CAGR of 21.6 percent during the same period.
A notable factor contributing to this surge in cloud adoption is the increasing integration of artificial intelligence (AI), particularly generative AI (GenAI). The rising demand for AI capabilities has prompted businesses to seek out scalable and high-performance cloud resources, prompting a notable investment in AI-ready infrastructures by both organizations and technology providers.
The report highlights that Western Europe maintains a dominant position in the public cloud services market, accounting for over 80 percent of the EMEA region's revenue in this sector. Noteworthy contributors to this market include Germany, the U.K., France, and Italy, which are leading the way in cloud adoption.
In contrast, the Middle East and Africa (MEA) are identified as the fastest-growing sub-region for IaaS. This area is attracting attention from global cloud providers such as Amazon Web Services (AWS), Microsoft, Google, Oracle, and Alibaba, all of whom are working to enhance their presence in these emerging markets.
Hyperscalers are further expanding their cloud infrastructure throughout Europe, with significant investments in cloud regions across countries including Finland, Greece, Denmark, the Netherlands, Belgium, Austria, and Spain. This expansion is expected to facilitate greater adoption of public cloud services.
Additionally, cloud service providers are focusing on emerging markets within the MEA region, with plans to increase accessibility to public cloud services in tier two countries such as Kuwait, Morocco, and Kenya. This strategic move is seen as an effort to meet the rising demand for cloud solutions in these regions, enabling businesses to harness the advantages of cloud technology.
The IDC report underscores a growing trend among businesses in the EMEA region towards the adoption of public cloud services, propelled by advancements in AI and strategic investments aimed at enhancing cloud infrastructure.
Source: Noah Wire Services