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Public Cloud Services to Reach US$165.2 Billion in 2026

By Maria Santos
2 min read
Cloud Service scaled
Cloud Service scaled
In this article (5)

The public cloud services market in Asia Pacific, excluding Japan, will reach US$165.2 billion in 2026, according to IDC. The PCS market is to grow at a 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 in 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,” said 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 and to operate more efficiently and profitably. Organizations are progressively pursuing consistency, 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 the 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 continued adoption of core enterprise applications, such as customer relationship management (CRM) and enterprise resource management (ERM). These remain top priorities as organizations desire to obtain 360-degree visibility and better service for their customers and 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 an empathetic customer experience to augment customer retention rate and enhance pr

Questions & Answers

Q.

What is the expected total value of the public cloud services market in Asia Pacific, excluding Japan, by 2026?

A.

The public cloud services market in Asia Pacific, excluding Japan, is expected to reach US$165.2 billion by 2026.

Q.

Which specific public cloud service category is predicted to have the largest market value in Asia Pacific by 2026?

A.

Infrastructure as a service (IaaS) is predicted to achieve the largest market value, reaching US$80.7 billion and making up 48.8% of the market in 2026.

Q.

What is the anticipated trend for the year-over-year growth rates of the public cloud services market in the coming years?

A.

YoY growth rates are expected to slow down beginning in 2023, decreasing from 28.3% to 22.4% in 2026.

Q.

What factors are driving the growth in the Software as a service (SaaS) market in the Asia-Pacific region?

A.

SaaS growth is attributed to the continued adoption of core enterprise applications like CRM and ERM, as organizations aim for better customer visibility and improved internal operations.

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