Market Size of Indonesia Cloud Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 2.13 Billion |
Market Size (2029) | USD 4.21 Billion |
CAGR (2024 - 2029) | 14.52 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Indonesia Cloud Market Analysis
The Indonesia Cloud Market size is estimated at USD 2.13 billion in 2024, and is expected to reach USD 4.21 billion by 2029, growing at a CAGR of 14.52% during the forecast period (2024-2029).
- The major drivers that fuel the Indonesia cloud market growth are expanding digital transformation across firms, increasing Internet and mobile device adoption around the country, and increased consumption of big data. Next-generation industrial products will be cloud-enabled, and a cloud platform will be required to demonstrate digital business capabilities.
- According to a survey by Alibaba group titled Next-Generation Cloud Strategy in Asia, 94 percent of cloud service users in Indonesia hope to increase their investment in cloud technology by 2023, while 92 percent of other businesses in Indonesia plan to complete cloud migration in two years. More than half of the companies plan to increase investment in cloud computing, underlining the importance of cloud infrastructure in supporting business growth. In Indonesia, the focus of investment is on data and AI analytics (62 percent) and cloud computing (62 percent), followed by automation (58 percent) and the metaverse (51 percent).
- Moreover, enterprises are using a hybrid cloud to host their e-commerce website within a private cloud, where it is secure and scalable. For other uses, such as placing brochure sites, they utilize a public cloud, which is more cost-effective, and security is less of a concern for such data. This indicates the new cloud strategy is gaining traction in the cloud market. A mix of cloud and multiple cloud solutions is expected to emerge as a strong solution in the future.
- The players are introducing new cloud backup services to cater various needs of the customer. For instance, in September 2022, Google unveiled Cloud Backup and Disaster Recovery (DR), a service that enables clients to enable centralized backup management straight from the Google Cloud UI. Databases, applications, and cloud storage repositories are compatible with the new backup and recovery solution. Administrators can efficiently manage backups covering a variety of workloads with Google Cloud Backup and DR. They can also produce backups for file systems, databases (including SAP, MySQL, and SQL Server), and virtual machines (VMs) running on Compute Engine, VMware Engine, or on-premises VMware.
- On the contrary, Cloud service environments are complex, and complexity brings with it security risks. The public cloud is the most significant risk for organizations transitioning to a hybrid model. This is because security in the public cloud is API-driven, and the security practices employed may need to be improved.
- After all, developers unfamiliar with the organization's security requirements set up the security protocols. Migrating from a private or public cloud service infrastructure or an in-house data center to a cloud service system is time-consuming and resource-in-depth. The existing approaches and workload should be portable and operable in an on-premises framework and a third-party-managed public cloud.
Indonesia Cloud Industry Segmentation
Cloud technology refers to servers used over the Internet and the software and databases that operate on those servers. Cloud servers are placed in data centers all over the globe. Using cloud computing, users and businesses cannot handle physical servers or run software applications on their machines.
The Indonesia cloud market is segmented by type (public cloud (Saas, Paas, Iaas) and private cloud), by organization size (SMEs and large enterprises), by end user industry (IT and telecom, BFSI, retail and consumer goods, manufacturing, healthcare and life sciences, government, and other end user verticals), by region (Java, Sumatra, Kalimantan, and Other Regions). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
By Type | |||||
| |||||
Private Cloud |
By Organization Size | |
SMEs | |
Large Enterprises |
By End-use Industries | |
IT & Telecom | |
BFSI | |
Retail & Consumer Goods | |
Manufacturing | |
Healthcare & Lifesciences | |
Government | |
Other End User Verticals |
By Region | |
Java | |
Sumatra | |
Kalimantan | |
(Sulawesi, Papua & Muluku and Bali & Nusa Tenggara) |
Indonesia Cloud Market Size Summary
The Indonesia cloud market is experiencing significant growth, driven by the rapid digital transformation across various sectors, increased adoption of the Internet and mobile devices, and the rising consumption of big data. Companies are increasingly investing in cloud infrastructure to support their digital business capabilities, with a strong focus on data and AI analytics, cloud computing, automation, and the metaverse. The market is witnessing a shift towards hybrid cloud solutions, which offer a combination of private and public cloud services, providing both security and cost-effectiveness. This trend is particularly evident in sectors such as e-commerce, media, gaming, and banking, where organizations are leveraging cloud technologies to enhance scalability, agility, and operational efficiency.
The cloud market in Indonesia is characterized by a semi-consolidated landscape with several key players actively engaging in strategic partnerships and product development to expand their market presence. The pay-as-you-go model of public cloud services is transforming IT budgeting, allowing organizations to access diverse services without significant upfront investments. Software as a Service (SaaS) models are also gaining traction, offering businesses reduced costs, scalability, and seamless integrations. The banking and financial services sector, in particular, is adopting hybrid cloud solutions to manage critical and non-critical applications efficiently, ensuring compliance with regulations while enhancing customer insights and satisfaction. As the market continues to evolve, companies like Google, Tencent, and Microsoft are playing pivotal roles in driving cloud adoption through innovative solutions and strategic collaborations.
Indonesia Cloud Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 An Assessment of the recovery from COVID-19
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1.3 Assessment of impact of macro-economic trends
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1.4 Ecosystem Analysis
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Public Cloud
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2.1.1.1 SaaS
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2.1.1.2 PaaS
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2.1.1.3 IaaS
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2.1.2 Private Cloud
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2.2 By Organization Size
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2.2.1 SMEs
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2.2.2 Large Enterprises
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2.3 By End-use Industries
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2.3.1 IT & Telecom
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2.3.2 BFSI
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2.3.3 Retail & Consumer Goods
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2.3.4 Manufacturing
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2.3.5 Healthcare & Lifesciences
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2.3.6 Government
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2.3.7 Other End User Verticals
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2.4 By Region
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2.4.1 Java
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2.4.2 Sumatra
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2.4.3 Kalimantan
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2.4.4 (Sulawesi, Papua & Muluku and Bali & Nusa Tenggara)
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Indonesia Cloud Market Size FAQs
How big is the Indonesia Cloud Market?
The Indonesia Cloud Market size is expected to reach USD 2.13 billion in 2024 and grow at a CAGR of 14.52% to reach USD 4.21 billion by 2029.
What is the current Indonesia Cloud Market size?
In 2024, the Indonesia Cloud Market size is expected to reach USD 2.13 billion.