Europe 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), End User (Banking, Financial Services and

SKU ID : UMI- 13099225

Publishing Date : 01-Sep-2018

No. of pages : 128


  • In the IT industry, technologies are constantly increasing at a fast pace and cloud computing is one such trend that is integrated into the infrastructure of many companies across the world. The transition to cloud presents enormous growth opportunities for the enterprises that are operating in Europe. With the exponential growth in high value services such as Artificial Intelligence, analytics and Internet of Things, companies have positioned themselves to unlock valuable insights from the data. European Union has estimated that by 2020 data economy will be valued at US$ 858 Billion.
    Cloud computing has allowed its users to access scalable and shareable pool of computing resources ranging from networks, servers, applications and services and storage. Instead of investing huge capital in their own IT infrastructure, cloud acts as a further driver for technological growth and enables its users to access better IT infrastructure. Since 2016, increasing adoption of cloud services has had positive impact on the economies of European Union wherein removal of restrictions in regards to data flow has contributed immensely towards impelling growth of European Union cloud computing.
    Although not all European companies have adopted cloud computing, but through rapid uptake of cloud embracement it has been estimated that cloud services providers will be successful in garnering average net annual benefit of US$ 3.2 Billion by 2020. In addition,
    benefits linked to steady increase of cloud services are further anticipated to rise to U$ 52.2 Billion by 2020 in Europe. Cloud services has turned into a source of investment savings for user companies not only for medium and large companies but also for small enterprises, as utilization cloud has led to reduction of IT related operating expenses and leaving them with ample capital available for other investments. Moreover, it has been estimated that more than 300,000 new business will be generated in European region by 2020 through the rising acceptance of cloud. The impact of cloud computing is further undeniable as it has created around 2.5 Million new jobs and employment opportunities by 2015. Owing to this, the European cloud infrastructure market is expected to reach US$ 133.5 Billion in 2024 from US$ 62.1 Billion in 2017 at an exponential CAGR of 10.9% during the forecasted period (2018-2024).
    Despite cloud infrastructure constitute as engine of growth in terms of maturity of cloud technology and dynamic and competitive environment, but there lays some bottlenecks in terms of fragmentation of Digital Single Market, transparency and data protection and legal barriers to the emergence of European cloud with respect to free movement of data in European Union. With an objective of strengthening free movement of data, European Commission is dedicated to remove all the existing restrictions imposed on the location of data across the European Union that purposes to allow the European cloud users, cloud providers and economy as a whole to reap the benefits of cloud computing.
    Europe Cloud Infrastructure market is segmented based on deployment, services, service type and industrial verticals. Deployment (public and private cloud), public cloud services (software as a service, platform as a service, infrastructure as a service, business process as a service and cloud advertising), private cloud 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, IaaS is also anticipated to represent itself as the most adopted cloud services 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$ 22.4 Billion by 2024 displaying a phenomenon CAGR of 11.5% 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$ 20.7 Billion growing at reasonable CAGR of 9% 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 Germany dominated European cloud infrastructure market in 2017 followed by United Kingdom while the latter country is expected to play its dominant role during the forecast period. Technical upgradations that cater to opportunities for cloud computing, rapid growth in cloud industry spurring the entry of new players, rising investments by cloud players and creation of new employment opportunities coupled with gaining cloud acceptance among small and medium enterprises and various other factors have remarkably influenced the growth of European cloud market. Germany was valued at US$ 11.16 Billion in 2017 and the figure is anticipated to reach US$ 21.69 Billion by 2024 at a CAGR of 9.3% during the forecast period.
    The major players in this industry are Cisco System Inc, Equinix Inc, Google Inc, International Business Machines Corporation (IBM),, AT&T Inc, DXC Technology, AWS (Amazon Web Services), HP Inc 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, Alibaba has recently bolstered its cloud computing presence in Europe by launching cloud products around Artificial Intelligence and big data in Europe by trying to sign up with European businesses. Moreover, Microsoft has also expanded its outreach in Europe by offering its Microsoft Azure and Microsoft Office 365 today, and Dynamics 365.