Publication date: 27 Sep 2022
Asia/Pacific* Public Cloud Services to Reach US$165.2 Billion in 2026, according to IDC Forecast
Asia/Pacific* overall public cloud services (PCS) market will increase at a compound annual growth rate (CAGR) of 26.4%, from US$51.2 billion in 2021 to reach US$165.2 billion in 2026.
SINGAPORE, September 28, 2022 – According to a recent IDC Market Forecast titled Asia/Pacific ( e xcluding Japan) Public Cloud Services Forecast 2022–2026, the public cloud services market will reach US$165.2 Billion in 2026. IDC expects the Asia/Pacific* PCS market to grow at higher year-over-year (YoY) rate in 2022 at 31.4% in comparison to 30.0% in 2021, as cloud migration continues to accelerate. However, IDC expects the YoY growth rates to slow down beginning from 2023 with a YoY growth of 28.3%, to 22.4% in 2026.
"Majority of organizations have pivoted rapidly toward a digital-centric modus operandi to adapt to new ways of operating, working, and selling products and services amid various disruptions. These organizations progressively demand better outcomes from their adoption of digital technologies to increase efficiency, accelerate time to market, provide empathetic customer experience, make quicker decisions, and respond faster to customers. In IDC’s view, cloud technologies are the core building blocks for the future of digital infrastructure that can meet these challenges.” says Estelle Quek, Senior Research Manager, Cloud Services, IDC Asia/Pacific.
Infrastructure as a service (IaaS) will achieve a market value of US$80.7 billion and make up 48.8% of the Asia/Pacific* PCS market in 2026. IDC predicts more organizations will continue to accelerate IaaS adoption to reduce risks associated with capital expenditure to operate more efficiently and profitably. Organizations are progressively pursuing consistent, security, performance, and compliance across all resources by deploying, operating, and scaling digital infrastructure in dedicated datacenters (DCs), private cloud, PCS, and edge locations.
Platform as a service (PaaS) will reach a market value of US$27.4 billion, contributing to 16.6% of Asia/Pacific* PCS market in 2026. Growth is fueled by organizations that are gradually shifting application development in-house to have better control and those exploring ways to allocate development functions to non-IT staff using low-code/no-code platforms.
Software as a service (SaaS) will grow almost three times from US$20.8 billion in 2021 to US$57.1 billion in 2026, contributing to 34.6% of the entire Asia/Pacific* PCS market by then. SaaS growth is attributed to continual adoption of core enterprise applications, such as customer relationship management (CRM) and enterprise resource management (ERM). These remain as top priorities as organizations desire to obtain 360-degree visibility of their customers and better serve them, plus to improve internal planning and operations by streamlining business processes and activities.
“The PCS market's growth is fueled by organizations' DX acceleration and cloud-first approach with continuous adoption of hybrid work, business, or operations and the desire to drive better business outcomes, improve efficiencies, and create empathetic customer experience to augment customer retention rate and enhance profitability,” says Daphne Chung, Research Director, Cloud Services, IDC Asia/Pacific.
The IDC report, “Asia/Pacific (Excluding Japan) Public Cloud Services Forecast 2022–2026 ” (IDC #AP49576522), presents an updated forecast of the overall public cloud services market, including key drivers and inhibitors.
For more information on this IDC Market Forecast, please contact Daphne Chung at email@example.com. For media inquiries, please contact Michael de la Cruz at firstname.lastname@example.org or Miguel Carreon at email@example.com.
*Asia/Pacific excluding Japan
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDCAP and LinkedIn. Subscribe to the IDC Blog for industry news and insights.
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