Cloud Climbs, Software Soars: Public Cloud & Software Spending to Reach $222 Billion in 2024, Says IDC

Contact

For more information, contact:

• Michael De La Cruz (mdelacruz)  Email: mdelacruz@idc.com
• Miguel Carreon (mcarreon)  Email: mcarreon@idc.com
• Mario Allen Clement (maclement)  Email: maclement@idc.com

SINGAPORE, 03 June 2024 – According to the recent release of the IDC Worldwide Software and Public Cloud Services Spending Guide, public cloud services is projected to reach a staggering $219.3 billion by 2027, with on-prem/other investments accounting for another 30%.

The Asia/Pacific region is experiencing a double-headed IT spending boom, with public cloud services and software investments skyrocketing with a compounded annual growth (CAGR) of 14.2% by 2027 for the next 5 years. This growth defies global uncertainty threats, highlighting the region's strategic focus on digital transformation and technological innovation.

Businesses are increasingly adopting cloud environments for their agility, scalability, and cost-effectiveness. The demand for data analytics, cybersecurity, and AI solutions drives cloud adoption. This reflects the crucial role software plays in digital transformation initiatives across various industries. Businesses are investing heavily in cloud-based software, data analytics tools, and AI platforms to optimize operations, enhance customer experiences and gain valuable insights. This dual-pronged growth paints a picture of a dynamic and digitally focused Asia/Pacific market. By strategically investing in public cloud and software solutions, businesses are weathering economic uncertainties and positioning themselves for future success in an increasingly competitive landscape.

"As Asia Pacific strategically invests in public cloud and software, a message rings clear: Innovation is not a choice but a necessity for weathering global uncertainties and emerging as digital leaders. Those who harness technology effectively will be best positioned to shape the region's bright digital future." Says Mario Allen Clement, Associate Research Manager, Data and Analytics, IDC Asia/Pacific.

While the cloud's popularity is rising in Asia/Pacific, some businesses remain hesitant due to data security, network limitations, lack of internal expertise, desire for control, and upfront costs. Cloud providers are countering these concerns by boosting security, improving network infrastructure, offering training and support, providing hybrid/multi-cloud options, and implementing flexible pricing models. This focus on addressing specific needs will likely continue to drive cloud adoption across the region, despite the persistence of on-premises technology preferences.

Some of the key growth drivers by top 10 industry capturing 60% of the total market:

While challenges like affordability and infrastructure gaps remain, the larger picture is undeniable: the Asia/Pacific region is embracing the cloud at an unprecedented rate. This strategic shift, driven by diverse industries and supported by governments and providers, positions the region for sustainable growth and a competitive edge in the global digital landscape. In short, the cloud's ascent in Asia/Pacific is unstoppable, shaping the region's technological future, and propelling it towards a bright digital tomorrow.

The IDC Worldwide Software and Public Cloud Services Spending Guide quantifies public cloud computing purchases by cloud type for 28 industries and five company sizes across eight regions and 47 countries. Unlike any other research in the industry, this comprehensive spending guide was designed to help IT decision-makers clearly understand the industry-specific scope and direction of public cloud services spending today and over the next five years. The 28 industries included in the IDC's new industry taxonomy are: Consumer; Banking; Insurance; Capital Markets; Healthcare Payer; Healthcare Provider; Life Sciences; Telecommunications; Oil and Gas; Utilities; High Tech and Electronics; Aerospace and Defense; Automotive; Industrial and Other Manufacturing; Chemicals; Consumer Goods; Agriculture and Fishing; Mining; Retail; Software and Information Services; Travel and Transportation; Hospitality and Leisure; Media and Entertainment; Engineering, Construction, and Real Estate; Professional and Personal Services; Education; Federal/Central Government; State/Local Government.

About IDC Spending Guides

IDC's Spending Guides provide a granular view of key technology markets from a regional, vertical industry, use case, buyer, and technology perspective. The spending guides are delivered via pivot table format or custom query tool, allowing the user to easily extract meaningful information about each market by viewing data trends and relationships.

For more information about IDC's Spending Guides, please contact Vinay Gupta at vgupta@idc.com

Click here to learn about IDC's full suite of data products and how you can leverage them to grow your business.

About IDC

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 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, 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 @IDC  and LinkedIn. Subscribe to the IDC Blog  for industry news and insights.

Coverage