High growth rate of the cloud computing market – 3.6 billion PLN in 2023
The cloud computing market in Poland has once again experienced a high growth rate, growing by nearly 28% in 2022. This result is only slightly lower than PMR’s forecasts from last year. However, it should be noted that IT spending by companies has slowed down, with a clear decrease in growth compared to 2021. Macro-economic forecasts have also changed.
The CAGR for the years 2023-2028 is projected to not fall below 20%
According to the latest PMR report, the cloud computing market in Poland has been experiencing high growth for over a decade, which will continue in the coming years. In 2022 alone, this market reached a value of 2.9 billion PLN, and by 2023, total spending by businesses and institutions in Poland on cloud services is expected to grow to 3.6 billion PLN. Despite weaker forecasts compared to last year’s edition of the report, PMR does not predict a CAGR drop below 20% in any of the key cloud computing market models in the years 2023-2028, with the public cloud model experiencing even higher growth.
The growth of the cloud computing market is a result of several factors. Previously, the COVID-19 pandemic played a crucial role, leading to a rapid increase in investments in tools for remote work and resource security. Despite a return to pre-pandemic conditions, the trend of remote work continues.
The increase in the value of the cloud market is also a consequence of the progressing digital transformation of businesses in Poland and the increased demand for tools and services based on this technology. The expansion of the largest global providers and the development of cloud regions in Poland also contribute to the growing interest in cloud solutions and, consequently, to the market value.
Find comprehensive information about the current state of the Polish cloud computing market in the PMR report:
The macroeconomic situation and the cloud market in Poland
The macro-economic environment will not be clearly favorable for the development of cloud computing in Poland in the years 2023-2024. A barrier to development will be high inflation, which will have a dual impact on the cloud market. Higher service prices may impede its real growth due to reduced demand for more advanced solutions and the freezing of new projects, with companies sticking to a basic set of tools. On the other hand, price increases will raise the nominal value of the market.
It should be noted that cloud service prices have remained stable over the past few years. Such a pricing policy has been the standard way for cloud providers to compete. However, market uncertainty, including the negative impact of inflation, the war in Ukraine, and, above all, the rising level of energy costs, has forced cloud service providers to adjust their pricing policies. Several significant players, including Microsoft, Google, SAP, Oracle, and OVHcloud, have already announced price increases for cloud services in 2022.
The cloud computing market in Poland in 2022 has also been influenced by a new factor – the war in Ukraine. According to PMR research conducted for this year’s report, the war has caused a change in the attitude towards the cloud in about 30% of businesses in Poland. In the case of large companies, one in five admitted that the war is a factor affecting the decision to migrate to the cloud, mainly by speeding up ongoing migration projects. In practice, these projects were supposed to be more spread out over time, but the war changed the perspective in this case.
Of all the industries considered, the construction sector and the food industry were the most aware of the need for changes in cloud adoption due to the war in Ukraine. The development of this area has accelerated in 58% and 46% of the surveyed companies, respectively.
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ICT Business Unit Director