Asia Pacific Market Insights on Cloud Infrastructure: Insights and Forecast, 2018-2024: Emphasis on Deployment Type (Public Cloud, Private Cloud), Public Cloud Services (SaaS, PaaS, IaaS, Cloud Advertising, BPaaS), Private Cloud Services ( Managed Ho

SKU ID : UMI- 13099224

Publishing Date : 01-Sep-2018

No. of pages : 136


  • As the cloud infrastructure has entered into new era of adoption, considering the hyper growth economies of Asia, cloud growth has been not only been continual but also has been innovation led. Since cloud services are now been marketed for numerous years for its flexibility, cost efficiency, data availability, easy backup and storage, it has been proved that cloud adoption holds an increasingly vital role in Asia Pacific region. Many countries in Asia Pacific region are looking forward to adopt Smart Nation Strategy wherein they are more likely to migrate from traditional IT to the cloud services owing to the in – country support and the lowered cost of ownership. This has further enhanced the affordability of cloud services in the region. To add on, Asia has also overtaken Europe in terms of total innovation centers across regions by occupying around 35% share in region wise growth of innovation centers followed by the US. Similarly, Asia Pacific also held prominent share in regard to number of innovation centers wherein it held 34% share. Moreover, China and India being at the forefront in the cloud services they altogether held 36% showcasing promising impact for disruptive technology hence fueling the digital transformation in Asia Pacific region. For instance, more than 50% of the businesses in the region are deriving their maximum revenues from digitization. Businesses across the region are moving at a fast pace to adopt digital solutions wherein cloud is one among them in order to save costs, innovate fast and meet user’s specifications. Furthermore, more than
    50% of Asia Pacific businesses look to digitalization to drive innovation across all the facets of their operations while 50% of the business adopt digital services to determine potential business models. Since demand for data has become insatiable, around 55% of the business applications are run on public cloud or as Software as a Service. Owing to this, the Asia Pacific cloud infrastructure market is expected to reach US$ 140.3 Billion in 2024 from US$ 46.5 Billion in 2017 at an exponential CAGR of 16.3% during the forecasted period (2018-2024).
    Furthermore, significant spur in IT spending, government initiatives undertaken towards cloud computing, surge in data center penetration and mushrooming internet and smartphone penetration have also supported the region to outpace the rest of the regions in terms of growth prospects in cloud infrastructure market. By 2019, Asia Pacific is forecasted to have the largest amount of business IP traffic in the world, at 11.4 Exabytes per month as the specific region is forms the home to more than half of the world internet users. Smartphones have dramatically become the prominent communication hub for Asia Pacific region primarily for the country India. Consumers as well as businesses are increasingly using the mobile devices to access cloud enabled services such as social networking and video streaming. It has been projected that Asia Pacific is set to increase its traffic till 2021 and around 90% of the traffic will be from cloud services in the region. To add on further, cloud infrastructure in Asia Pacific has not only fostered owing to rising consumer workloads but also due to rise of machines and Internet of Things devices. It has been projected that as more and more data, business processes and devices get connected more than 45% of all connected devices in Asia Pacific will be M2M connections by 2020. However, interoperability, security concerns and lack of appropriate standardization constitute as some the hindering factors restraining the Asia Pacific cloud infrastructure market.
    Asia Pacific Cloud Infrastructure market is segmented based on deployment, services, service type and industrial verticals. Deployment (public and private cloud) and desktop printer), services (software as a service, platform as a service, infrastructure as a service, business process as a service and cloud advertising), service type (managed hosting and co-location) and industry verticals such as banking, financial services and insurance, retail, telecom and IT, healthcare, media and entertainment, government agencies, education, energy, manufacturing and other industry verticals are considered while analyzing and defining the penetration of cloud infrastructure services in different geographies and countries.
    In 2017, deployment segment dominated the Europe cloud infrastructure market with public cloud capturing maximum share in terms of revenue. Public cloud is further classified on the basis of SaaS, PaaS and IaaS. Owing to best economies of scale, enhanced scalability and wide adoption among SME’s due to its low cost, public cloud held 80% share in 2017. With fostering information technology, private cloud is also gaining traction. Since it offers similar benefits and entails same features as of public cloud, it is dedicated to single organization and aims to address the data security related concerns. Moreover, it also offers greater control which lags in public cloud. During 2017, cloud advertising held prominent share as it has drastically become the essential part of digital lives of many organizations. Moreover, with the remarkable growth of internet, SaaS is also anticipated to represent itself as one of the most adopted cloud services and account for 20.7% market share by 2024 attributed to scalability and substantial surge in adoption rate of cloud among small and medium enterprises.
    Managed Hosting and Co-location are the two service types that are widely used across cloud computing landscape. The former category forms as a multi-billion dollar market that is growing rapidly owing to enhanced security and ownership over the data offered to organizations and reduced investments on IT infrastructure. Managed Hosting segment is projected to account US$ 23.5 Billion by 2024 displaying a phenomenon CAGR of 16.9% over 2018-2024. Cloud computing services are widely used across all the industry verticals. Among several industrial sectors, telecom and IT segment held the highest market share of 17.44% during 2017 accredited to rapid development of mobile internet, Internet of Things and explosive growth in variety of access devices and end user demands. It has been projected that segment will register US$ 21.7 Billion revenues in 2024 growing at reasonable CAGR of 14.3% during the forecasted period (2018-2024).
    Furthermore, Mitel Networks Corporation, a telecommunication company is also experiencing rapid growth in cloud communication services and now captures around 1 Million cloud users in Europe which has been mainly gained through service providers in the continent.
    Furthermore, considering the geographical penetration across different countries in the region, the Japan dominated Asia Pacific cloud infrastructure market in 2017 followed by China. Technical upgradations that cater to opportunities for cloud computing, use of disruptive technologies such as Internet of Things, smart industrial robotics, data and analytics coupled with enhanced automation, rapid growth in cloud industry spurring the entry of new players, rising investments by cloud players and gaining cloud acceptance among small and medium enterprises have led the cloud companies to capture new business opportunities in Asia Pacific region. Japan was valued at US$ 12.1 Billion in 2017 and the figure is anticipated to reach US$ 32.2 Billion by 2024 registering a phenomenal CAGR of 14.2% during the forecast period.
    The major players in this industry are Cisco System, Equinix Inc., Google, IBM,, AT&T, DXC Technology, Amazon Web Services, HP and Rackspace Hosting Inc. With an objective to enhance their geographical presence, the major market players have entered into various acquisitions and collaborations which further offers them growth opportunities in cloud domain. For instance, the largest players in cloud computing are looking forward to Asia Pacific region for further cloud expansion wherein Google aims to builds its new data centre in Singapore, while Alibaba Cloud purposes to develop its second infrastructure zone in Malaysia.