The public cloud services market (PCS) in Europe, the Middle East, and Africa (EMEA) is experiencing rapid growth. According to the latest Worldwide Semiannual Public Cloud Services Tracker report from IDC, this market is expected to generate $203 billion in revenue by 2024 and reach $415.1 billion by 2028, representing a compound annual growth rate (CAGR) of 20.0% between 2023 and 2028.
The report highlights that software as a service (SaaS) solutions will continue to lead the market, accounting for 64.4% of total revenue in 2024. However, the fastest-growing segment is platform as a service (PaaS), with a projected CAGR of 29.3% during the forecast period, followed by infrastructure as a service (IaaS), with 21.6%.
Artificial Intelligence Driving Cloud Adoption
The rise of generative artificial intelligence (GenAI) and continued investments in data centers by leading global providers are driving demand for cloud services. Both end-users and technology providers are investing in AI-ready infrastructures and platforms. Major tech companies such as Google, AWS, Microsoft, and Oracle are integrating advanced GenAI features into their portfolios, creating new growth opportunities for IaaS and PaaS.
Manish Ranjan, research director for software and cloud at IDC EMEA, stated: “The adoption of GenAI by companies to gain a competitive edge is increasing the need for scalable, on-demand infrastructures. High-performance resources, such as GPUs and accelerated computing, are essential for handling AI workloads. Cloud service providers have become the primary gateway, offering the necessary infrastructure without significant upfront investments.”
Europe Leads, but the Middle East and Africa Show the Fastest Growth
From a regional perspective, Western Europe dominates the cloud services market in EMEA, accounting for over 80% of total revenue. Countries such as Germany, the United Kingdom, France, and Italy are positioning themselves as key investment destinations. However, countries like Spain, Finland, and Greece are emerging as new development hubs thanks to investments from major global providers.
In the Middle East and Africa (MEA), the subregion with the fastest growth in the IaaS segment, tech giants like Alibaba, AWS, and Microsoft have established new cloud regions in countries like Saudi Arabia, the United Arab Emirates, South Africa, and Qatar. Additionally, expansions are anticipated in markets like Morocco, Kenya, and Kuwait.
A Promising Future for Public Cloud in EMEA
The report emphasizes that the increasing adoption of GenAI and investments in cloud infrastructures are not only transforming enterprise technology but also generating significant economic benefits across the region. The accelerated pace of implementing cloud-based technologies is shaping a more connected and competitive digital landscape for the coming years.
The expansion of public cloud services in EMEA represents an essential pillar for digital transformation across various sectors, from retail to manufacturing and telecommunications. The evolution of this market not only ensures a more technological future but also a more robust infrastructure tailored to the needs of tomorrow’s businesses.
via: IDC