Explosive Growth in Asia Pacific Public Cloud Services Market Continues: IDC

The Asia Pacific excluding Japan and China (APeJC) public cloud services (PCS) market has surged to new heights, according to the latest report from the International Data Corporation (IDC).
Public Cloud market in Asia Pacific IDC ForecastIn 2022, the Public Cloud Services market in the Asia Pacific region has reached a staggering $32.5 billion, marking a remarkable year-on-year growth of 25.3 percent, as outlined in the IDC’s Worldwide Semiannual Public Cloud Services Tracker for the second half of 2022.

The report highlights the dynamic landscape of the PCS market, encompassing infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS). Notably, the software as a service (SaaS) segment remains the largest, accounting for over 60 percent of the total public cloud services market in 2022.

In contrast, the platform as a service (PaaS) market, while the smallest in terms of market share, experienced the most rapid growth, soaring by an impressive 45.1 percent in the same year. This surge in PaaS can be attributed to the widespread adoption of artificial intelligence (AI) platforms, data management software, and application platforms, the latest IDC report said.

One of the driving forces behind the soaring demand for public cloud services is the shift to digital business models. Organizations are increasingly leveraging PCS to expedite time-to-market, develop data-driven strategies, personalize and innovate their offerings, and foster more engaging customer interactions. Furthermore, concerns about security and compliance are diminishing, as organizations recognize the shared responsibility model and acknowledge the potential for heightened security and cost-efficiency in the public cloud compared to on-premises solutions.

Industries subject to stringent regulations are also making significant strides in adopting public cloud services, particularly evident in the digital banking sector. Many virtual and traditional banks are turning to PCS to launch digital banking services while adhering to regulatory requirements. Consequently, selecting cloud service providers compliant with global security standards and regulations has become a pivotal criterion in vendor selection.

The top five players dominating the APeJC PCS market in 2022 include Amazon Web Services (AWS), Google, Microsoft, Salesforce, and SAP. Together, these industry giants captured over 40 percent of the share in the Public Cloud Services market. Chinese vendors such as Alibaba Group and Huawei are also making their mark, particularly in the infrastructure as a service (IaaS) sector, where they compete fiercely with global counterparts.

Looking ahead to 2023, IDC anticipates a degree of impact on the overall PCS market due to a sluggish global economic environment. Organizations are expected to focus on cost optimization and exercise caution when launching large-scale cloud projects. Automation will emerge as a central focus area, with solutions like serverless computing, robotic process automation (RPA) software, and artificial intelligence/machine learning (AI/ML) tools playing a pivotal role in streamlining business and IT operations to reduce costs.

The forecast for the APeJC PCS market is highly promising. In 2023, the Public Cloud Services is projected to reach $39.4 billion, demonstrating a year-on-year growth of 21.3 percent. Looking further ahead, the Public Cloud Services market is predicted to achieve a remarkable $83.1 billion by 2027, translating to an impressive five-year compound annual growth rate (CAGR) of 20.6 percent.

Liew Siew Choon, Senior Research Manager at IDC Asia/Pacific, emphasizes the significance of automation in the evolving landscape, stating, “Automation will be the key focus area, with solutions like serverless computing, robotic process automation (RPA) software, and artificial intelligence/machine learning (AI/ML) tools, to streamline both business and IT operations and drive costs down.”

With the ongoing proliferation of cloud services and the innovations they bring, the Asia/Pacific region is poised to undergo a transformative journey, solidifying its position as a global technology hub.

Related News

Latest News

Latest News