Value of the Polish cloud computing market increased by 1 billion PLN in 2023
Contrary to initial concerns related to economic slowdown due to high inflation and rising interest rates, the cloud computing market shows no signs of slowing down. On the contrary, according to the latest PMR analyses, spending on cloud services in 2023 once again reached a record level, increasing year-on-year by 1 billion PLN.
The pace of cloud adoption has not slowed down
According to the latest PMR report, “Cloud computing market in Poland 2024“, the total value of the cloud computing market in 2023 amounted to 3.9 billion PLN, marking a 34% year-on-year increase. The potential for further growth in the coming years remains evident. PMR forecasts for 2024 indicate that the cloud market is expected to grow to 4.8 billion PLN in 2024, and by 2029, it is projected to approach the level of 13 billion PLN.
Value and change of the cloud computing market in Poland, 2021-2024 i 2029
| 2021 | 2022 | 2023 | 2024 f | 2029 f | |
|---|---|---|---|---|---|
| Value (PLN m) | 2,2 | 2,9 | 3,9 | 4,8 | 12,9 |
| Change (% YoY) | 31% | 29% | 34% | 24% | X |
f – forecast
Source: PMR, 2024
Although the cloud services market is growing at a much faster pace than the overall IT market, it still represents only a small portion of total IT expenditures (less than 10% in 2023). PMR predicts that this share will gradually increase in the coming years. The current situation in the market can be attributed to the accelerated adoption of new and existing cloud solutions by companies in Poland, which has been a consistent trend for several years. According to PMR research conducted for the report, the pace of adoption of cloud computing technologies has not slowed down. Furthermore, the majority of companies confirm that the cloud is becoming an essential element of their digital transformation.
Share of large enterprises in Poland planning to increase their spending on cloud computing in 2024 compared to 2023 (%), 2024
| Large enterprises | |
|---|---|
| Plan to increase expenditures | 73% |
| Plan to decrease expenditures | 0% |
| Expenditures will remain unchanged | 27% |
Source: PMR, 2024
The approach of large firms in Poland regarding planned expenditures remains unchanged. Less than one firm out of 100 declares an intention to decrease spending on the cloud. The utilization of cloud computing is associated with increasing costs, which are not always solely driven by new projects and investments, but also by changes in the pricing policies of cloud providers. Additionally, one cannot overlook technological innovations.
The driving force of the economy in the coming years will be a combination of modern high-performance computers. The utilization of artificial intelligence within organizations is poised to become one of the main priorities in the coming years. Another significant factor shaping new perspectives for the cloud computing market is the development of telecommunication infrastructure in Poland, encompassing both mobile (5G) and fixed-line (FTTx) access. This will enable the collection of data from devices, transmission to the cloud, and real-time feedback.
The expansion of telecommunication infrastructure will lay the groundwork for a range of new applications that were not feasible using older technologies. Recently, the launch of 5G networks in the 3.4-3.8 GHz frequency range has gained particular importance, as it will popularize mobile cloud solutions.
GUS - record growth in cloud utilization in 2023
The significant interest in cloud computing in Poland is also confirmed by the latest data from the Central Statistical Office in Poland (GUS). As recently as 2021, Poland was considered to have a relatively low base and penetration of cloud solutions compared to other Central European countries. However, the past two years have seen a rapid increase in cloud utilization by enterprises in Poland, leading to its position as a leader in the Central and Eastern European region.
Use of cloud computing services by enterprises in selected Central European countries (%), 2014-2021 and 2023
Note: enterprises employing 10 and more employees.
Source: Eurostat, 2023
It is important to remember that even with the already achieved high level of penetration, cloud computing will continue to be one of the main areas for budget allocation by enterprises in the coming years. This is indicated, among other factors, by the new agenda of the European Commission, “A Digital Decade”. According to its assumptions, by 2030, a minimum of 75% of European enterprises should be using cloud-based solutions. At the same time, during the forecast period, it can be expected that additional initiatives will gain importance – such as the development of a sovereign European cloud. This only confirms that the current direction of market development will be maintained in the coming years.
Methodological notes
The article was prepared based on the PMR report “Cloud computing market in Poland 2024. Market analysis and development forecasts for 2024-2029”.
For the purposes of this report, PMR conducted a study on a sample of 500 large companies and SMEs in Poland. The survey was conducted in January and February 2024 using computer-assisted telephone interviewing (CATI) technique.
Find comprehensive information about the current state of the Polish cloud computing market in the PMR report:
Cloud computing market in Poland 2024. Market analysis and development forecasts for 2024-2029
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ICT Business Unit Director