Selling Cloud Computing in Asia Pacific? Expect ‘Skyrocketing’ Demand

Research firm IDC has new numbers that show Asia-Pacific leading the world in cloud computing consumption through 2027.

Kelly Teal, Contributing Editor

June 3, 2024

3 Min Read
IDC study shows "skyrocketing demand" in Asia-Pacific for cloud computing.

If you’re selling cloud computing to clients in Asia-Pacific, you’re headed for some serious revenue growth – that is, if new projections from research firm IDC hold through 2027.

That’s when analysts say worldwide spending on public cloud computing will hit a “staggering” $219.3 billion, with the bulk coming from Asia-Pacific buyers.

IDC just released its Worldwide Software and Public Cloud Services Spending Guide. In addition to demand for public cloud, organizations around the world also will consume other forms of cloud computing (on-premises and other, per IDC) that account for another 30% in forthcoming consumption figures.

Throughout all of that frenzy, Asia-Pacific will represent the most active market. That region, according to IDC, “is experiencing a double-headed IT spending boom.”

In other words, public cloud services and software investments are “skyrocketing,” IDC said, heading toward a compound annual growth rate of 14.2% by 2027 – for the next five years.

“This growth defies global uncertainty threats, highlighting the region's strategic focus on digital transformation and technological innovation,” IDC noted in a June 3 press release.

A Cloud Computing Message ‘Rings Clear’

Even so, businesses in certain industries remain hesitant about cloud computing, IDC said. They’re concerned about data security, network limitations, internal expertise, need for control and, of course, upfront costs. Still, IDC said, as cloud providers counter these worries in various ways (improving security and infrastructure, offering training and support, delivering hybrid and multi cloud options, implementing flexible pricing), cloud adoption will soar, “despite the persistence of on-premises technology preferences.”

Related:5 Things to Know About Incoming AWS CEO Matt Garman

That’s especially the case as, not surprisingly, organizations are insatiably hungry for data analytics, cybersecurity and artificial intelligence. Businesses look to these capabilities to optimize how they run, bolster customer experiences and glean insights that lead to more revenue, IDC said. Those requirements are high in Asia Pacific, analysts added.


"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,” said Mario Allen Clement, associate research manager, data and analytics, IDC Asia-Pacific. “Those who harness technology effectively will be best positioned to shape the region's bright digital future.”

That’s not to say there aren’t still challenges around affordability and infrastructure, IDC clarified. Despite those obstacles, the larger picture is “undeniable,” analysts said – meaning, “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.”

What’s Driving Cloud Computing Deployments in 5 Key Markets

Meanwhile, here are some of the key drivers propelling worldwide cloud computing deployments among five of the top 10 sectors that claim 60% of the total market:

  • Software and information services: Digital transformation, data analytics, government support and innovation (19.4% growth from 2022-2023)

  • Banking: Digital banking use, more disposable income, investments in financial technology (14.6% growth from 2022-2023)

  • Industrial and other manufacturing: More need for automation, meeting government requirements (13.4% growth from 2022-2023)

  • Retail: Rise of ecommerce, omnichannel adoption, mobile shopping (16.1% growth from 2022-2023)

  • Education: Growing demand for online education, digital learning (15.6% growth from 2022-2023)

All in all, IDC said, spending on public cloud computing and software will reach $222 billion in 2024. 

Notably, that figure falls significantly behind rival Gartner’s recent projections. That analyst firm said on May 20 that global end-user spending on public cloud services will total $675.4 billion this year. That’s a 20.4% increase over last year, when the same outlay amounted to $561 billion, per Gartner. (It’s also just slightly lower than what the firm predicted in November, when it said public cloud spending would hit $678.8 billion in 2024.)

About the Author(s)

Kelly Teal

Contributing Editor, Channel Futures

Kelly Teal has more than 20 years’ experience as a journalist, editor and analyst, with longtime expertise in the indirect channel. She worked on the Channel Partners magazine staff for 11 years. Kelly now is principal of Kreativ Energy LLC.

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