The market for public cloud services (PCS) in Europe, the Middle East and Africa (EMEA) is experiencing rapid growth, which will continue. The value of the market is estimated to reach $203 billion. for 2024, to reach $415.1 billion. to 2028. According to the latest International Data Corporation (IDC) report, this market will exhibit a compound annual growth rate (CAGR) of 20.0% for the period to 2028.

According to the analysts, software as a service (SaaS) is the largest segment of the market, accounting for 64.4% of PCS revenue by 2024. However, its growth is slower compared to other categories. In contrast, Platform as a Service (PaaS) is the fastest growing segment, with a CAGR of 29.3% over the same period, while Infrastructure as a Service (IaaS) follows with a CAGR of 21.6%.

The market is expected to reach $415 billion. by 2028 from $203 billion, estimated in 2024

The increasing adoption of artificial intelligence (AI), especially generative artificial intelligence (GenAI), as well as investments in cloud infrastructure by service providers, are key drivers for growth. Enterprises are investing in AI-ready infrastructure, while public cloud providers are increasingly incorporating AI functionality into their products.

“As enterprises adopt productive artificial intelligence for competitive advantage, the demand for scalable infrastructure is growing rapidly,” IDC reports and adds: “Public service providers cloud they become the main entry point, offering the necessary infrastructure without significant upfront investment”.

Investments in Greece

Western Europe leads the market in the EMEA region, accounting for over 80% of revenue, with Germany, Great Britain, France and Italy standing out as key investment destinations. Meanwhile, global giants such as Google, AWS, Microsoft and Oracle, according to IDC’s analysis, are expanding their infrastructure in countries such as Finland, Greece, Denmark and Spain.

Meanwhile, in the Middle East and Africa (MEA), which is the fastest growing sub-region for IaaS services, major providers such as AWS, Microsoft, Google and Alibaba are actively investing in countries such as Saudi Arabia, United Arab Emirates and South Africa.

Prospects

The growth of the public cloud services market in EMEA reflects the growing need for resilient, scalable and innovative technology solutions. With productive artificial intelligence as the catalyst for new opportunities, cloud infrastructure will remain a key driver of technological advancement and economic growth in the region.