Spain Cloud Computing Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 8.21 Billion |
| Market Size (2029) | USD 18.56 Billion |
| CAGR (2024 - 2029) | 17.71 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Spain Cloud Computing Market Analysis
The Spain Cloud Computing Market size is estimated at USD 8.21 billion in 2024, and is expected to reach USD 18.56 billion by 2029, growing at a CAGR of 17.71% during the forecast period (2024-2029).
- Many businesses in Spain are undergoing digital transformation to remain competitive. Cloud computing provides the necessary infrastructure for organizations to transition to digital operations, enabling improved collaboration and remote work capabilities. For instance, the Spanish government has invested in digital transformation initiatives as part of its Spain Digital 2025 Strategy, promoting the adoption of cloud technologies across public services and private enterprises.
- Cloud computing slashes IT costs by reducing reliance on on-premises infrastructure, allowing organizations to pay solely for the resources they consume. This approach empowers businesses to allocate their funds more judiciously. For instance, in May 2024, Telefonica and Google Cloud renewed and extended their partnership, aiming to deliver top-tier cloud solutions and expedite digital transformations for businesses. Their agreement broadened the range of Google Cloud services available through Telefónica Tech in the B2B sector, underscored Telefónica's own cloud adoption, and deepened collaboration in pivotal innovation domains like artificial intelligence (AI) and generative AI. Movistar, a subsidiary of Telefónica, has harnessed cloud solutions to boost operational efficiency, resulting in notable savings and a swift pace of innovation.
- As businesses produced enormous volumes of data, cloud computing provided scalable solutions for both data storage and advanced analytics. This empowered organizations to extract actionable insights from their data. For instance, in November 2023, Salesforce introduced its latest innovations in the Automotive Cloud. These innovations were designed to empower automotive companies to harness the power of data and AI. The focus of these advancements included enhancing in-car personalization, optimizing fleet management, and streamlining auto lending and leasing processes.
- As organizations transition to the cloud, security remains a paramount concern. In response, cloud providers are bolstering their security measures, attracting businesses that prioritize data protection. In 2023, BBVA, a leading Spanish bank, collaborated with cloud providers to fortify its security infrastructure, harnessing cloud technologies to safeguard data and adhere to regulatory compliance.
- Cloud computing, which provides on-demand platforms, software, and infrastructure, is vulnerable to various data breaches. Customers continued to express concerns about outsourcing their data to public cloud services even when assured of strong security measures. Despite the efforts of cloud service providers to protect client data, several data breach incidents affected even the most prominent businesses.
- For instance, Surfshark reported that in 2023, between Q3 2022 and Q3 2023, Spain witnessed fluctuations in data breach density. In Q3 2022, Spain recorded 84 exposed data points per thousand individuals. This figure dropped to 12 in the subsequent quarter and further declined to 6 by Q2 2023. A 2023 survey revealed that approximately 58% of Chief Information Security Officers (CISOs) in Spain reported experiencing a loss of sensitive information within the past year.
Spain Cloud Computing Market Trends
Significant Progress in Digital Transformation Nationwide
- Cloud computing fosters innovation by providing access to advanced technologies, such as artificial intelligence (AI), machine learning (ML), and Big Data analytics. Organizations can experiment and innovate without significant upfront investments. For example, Spain has earmarked EUR 10.2 billion (USD 11.2 billion) to drive the digital transformation of its industries, manufacturing sectors, and SMEs. This investment also targets AI advancements and the digitalization of tourism and cultural systems.
- In addition, a further EUR 15.4 billion (USD 17.04 billion) is allocated to bolster fixed and 5G connectivity, enhance data infrastructure and nurture the related ecosystem. Complementing these financial commitments, Spain's agenda encompasses the 'Digital Spain Agenda 2025', a 5G cybersecurity law, an Artificial Intelligence strategy, a digital skills initiative, and an updated telecommunications law. These measures aim to modernize the country's regulatory framework, introducing new regulatory and enforcement tools.
- As organizations digitize their operations, ensuring data security and regulatory compliance becomes a priority. Many cloud providers offer robust security measures and compliance with regulations, making them attractive to organizations handling sensitive data. For example, in June 2024, Unicaja advanced its hybrid cloud strategy in collaboration with IBM, adopting the IBM Cloud for Financial Services. This platform was tailored to assist financial institutions in harnessing cloud capabilities while ensuring adherence to stringent industry regulations and security mandates.
- In a parallel move to enhance operational efficiency and competitiveness, Unicaja also integrated with IBM's Multizone Cloud Region (MZR) in Madrid, inaugurated last year. This initiative aimed to expedite innovation for enterprises while aligning with the European Union's regulatory standards and ensuring data, operational, and digital sovereignty.
- Cloud computing enhances digital transformation by evolving it from merely adopting new technology to a comprehensive restructuring of processes, tools, and experiences in a remote, virtual environment. Cloud solutions improve security, enhance user experience, and protect data integrity. Consequently, businesses are increasingly incorporating cloud technologies into their operations, driving the growth of the cloud computing market.
- Cloud computing has emerged as a transformative force for businesses aiming to develop supply chain management (SCM) swiftly and effectively. For instance, in March 2024, Oracle unveiled Oracle Smart Operations, introducing enhanced supply chain execution features in its Oracle Fusion Cloud Supply Chain & Manufacturing (SCM) suite. Leveraging technologies such as artificial intelligence (AI), these new features in Oracle Fusion Cloud Manufacturing and Oracle Fusion Cloud Maintenance empower customers to boost factory output through increased productivity, improved quality, reduced unplanned downtime, and enhanced operational visibility.
- Since its inception, numerous banking and fintech entities have steadily transitioned to cloud technology. The financial sector is experiencing rapid growth in data creation and utilization. This transition enhances transparency and gives consumers greater control over auditing processes and data management. In addition, it offers a more flexible method for data classification.
BFSI is Expected to Grow at a Significant Rate
- Cloud computing enables BFSI organizations to automate processes and minimize reliance on on-premises infrastructure. This operational efficiency is vital in a sector where time directly translates to money. For instance, in June 2023,CaixaBank has entered into a strategic, multi-year partnership with Google Cloud, aiming to expedite its cloud transition and harness data and analytics for innovation. Under this agreement, CaixaBank will utilize Google Cloud's computing, data analytics, and AI capabilities to craft new customer services and propel its digital transformation.
- Furthermore, BFSI firms frequently adjust their IT resources based on demand, particularly during peak periods like tax season or fiscal year-end. Cloud computing provides the agility to scale without incurring hefty upfront costs. For example, in March 2023, nCino, Inc. announced an expanded partnership with Deloitte Spain. As a global strategic partner, Deloitte's profound expertise in nCino's offerings enabled more financial institutions in Spain to prioritize operational efficiency and cost control, aligning innovation with automation for tangible results.
- Additionally, the BFSI sector faces stringent regulations, and cloud service providers come equipped with compliance features to help organizations align with the mandates of Spain's financial authorities. For instance, in 2024, Salesforce unveiled AI-driven features, leveraging the Einstein 1 Platform, aimed at streamlining transaction dispute resolutions for banks. These features, namely Transaction Dispute Management and Einstein Copilot Banking Actions, merge transaction data from banking systems with customer insights from Salesforce. This integration automates manual processes, minimizes errors, addresses concerns, and enhances customer interactions, all centralized on one platform.
- Moreover, as cyber threats loom larger in the financial realm, the enhanced security measures of cloud service providers become increasingly appealing. These providers often deploy advanced security technologies, sometimes beyond the reach of individual financial institutions. According to Mastercard, technology and services were the industries with the highest share of cyberattacks in Spain, accounting for 32 occurrences between January 2021 and August 2023. Meanwhile, the energy industry in Spain's strategic sector had the most cybersecurity incidents registered in Spain in 2022, with around 203 occurrences, while the tax and financial systems ranked second, with 95 incidents registered in the same year.
- For instance, in March 2024, the Spanish National Cybersecurity Institute (INCIBE) and the Italian National Cybersecurity Agency (ACN) signed a collaboration agreement. This agreement aimed to bolster the cybersecurity culture in both nations and enhance their capabilities to tackle the sector's rising challenges. Furthermore, the agreement underscored a strong commitment to fostering exchanges and identifying synergies between the two countries' cyber ecosystems, particularly in industrial and research domains.
Spain Cloud Computing Industry Overview
Spain's cloud computing market is experiencing notable fragmentation, with numerous players competing for market share. Many of these companies are forming strategic partnerships and expanding into new markets to strengthen their positions. Key players include industry leaders such as Amazon Web Services, Google LLC, Microsoft Corporation, and Salesforce.
• June 2024: Oracle announced its intention to invest over USD 1 billion in establishing a third cloud region in Madrid, alongside a commitment to bolster AI skills development nationwide. This new public cloud region was set to empower Oracle's customers and partners across diverse industries in Spain, notably its key financial services sector. It aimed to facilitate the migration of mission-critical workloads from local data centers to Oracle Cloud Infrastructure (OCI). Furthermore, this move was intended to aid in adhering to regulations such as the Digital Operational Resilience Act (DORA) and the European Outsourcing Guidelines (EBA, EIOPA, ESMA). Telefonica España was slated to be the host partner for this upcoming cloud region.
• June 2024: Microsoft announced the opening of its first cloud region in Spain, establishing data centers across various sites in the Community of Madrid. From this hub, Microsoft provided Artificial Intelligence and cloud services to businesses and public entities in Spain and throughout Europe, emphasizing reliability, security, privacy, and data residency. Dubbed 'Spain Central,' this new cloud region was poised to fast-track the digital transformation of Spanish organizations, bolster the AI Economy in Spain, and stimulate the growth of the local IT sector.
Spain Cloud Computing Market Leaders
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Amazon Web Services, Inc
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Microsoft Corporation
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Google LLC
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Oracle Corporation
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IBM Corporation
*Disclaimer: Major Players sorted in no particular order
Spain Cloud Computing Market News
- May 2024: AWS invested USD 17 billion to expand its cloud and AI infrastructure services in Spain. Amazon’s cloud business expanded its cloud infrastructure in the Aragón region of northeastern Spain, creating 6,800 jobs across roles, including construction, engineering, and facilities maintenance. AWS stated that its infrastructure expansion would contribute USD 24 billion to Spain’s gross domestic product. More than half of the contribution came from the Aragón region while also supporting 17,500 jobs in local businesses.
- February 2024: OVHcloud, a prominent European cloud specialist, launched its first two public cloud 'Local Zones' in Madrid, Spain. Owing to a recent acquisition, OVHcloud rapidly deployed cloud capacity within weeks, targeting new international markets. The newly established Local Zones in Spain provided customers with improved access to OVHcloud's Public Cloud services, guaranteeing low latency and compliance with local data residency mandates.
Spain Cloud Computing Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Robust Shift toward Digital Transformation across the Country
5.1.2 Data Privacy Concerns are Driving Increased Adoption of Public Cloud Services
5.2 Market Challenges
5.2.1 Regulatory Compliance and Data Breaching Risk
5.3 Pricing Model Analysis
5.4 Overview of Demand Trends of Cloud Computing in Spain
5.4.1 Increased Adoption of Hybrid and Multi-cloud Strategies
5.4.2 Rising Adoption of SaaS Applications
5.5 Number of Data Centers in Spain
5.6 Industry Regulations and Standards for Cloud Computing Market in Spain
5.7 Case Study Analysis
6. MARKET SEGMENTATION
6.1 Type
6.1.1 Public Cloud
6.1.1.1 IaaS
6.1.1.2 PaaS
6.1.1.3 SaaS
6.1.2 Private Cloud
6.1.3 Hybrid Cloud
6.2 Organization Size
6.2.1 SMEs
6.2.2 Large Enterprises
6.3 End-user Industries
6.3.1 Manufacturing
6.3.2 Education
6.3.3 Retail
6.3.4 Transportation and Logistics
6.3.5 Healthcare
6.3.6 BFSI
6.3.7 Telecom and IT
6.3.8 Government and Public Sector
6.3.9 Other End-user Industries (Utilities, Media & Entertainment, etc.)
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Amazon.com Inc. (AWS)
7.1.2 Google LLC
7.1.3 Microsoft Corporation
7.1.4 OVH Groupe SA
7.1.5 A3Sec Group
7.1.6 Arsys Internet SLU
7.1.7 Oracle Corporation
7.1.8 IBM Corporation
7.1.9 Akamai Technologies
7.1.10 Salesforce Inc.
7.1.11 SAP SE
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Spain Cloud Computing Industry Segmentation
Cloud computing is the supply of computing services over the internet, including servers, storage, databases, networking, software, analytics, and intelligence to provide quicker innovation, adaptable resources, and scale economies. Customers usually only pay for the cloud services they use, which helps to save operational costs, run infrastructure more effectively, and scale as business requirements change.
The Spanish cloud computing market report is segmented by type (public cloud [ IaaS, Paas, and Saas], private cloud, and hybrid cloud), organization size (SMEs and large enterprises), and by end-user industries (manufacturing, education, retail, transportation and logistics, healthcare, BFSI, telecom and IT, and government and public sector, and others including utilities, media & entertainment, etc.). The market sizes and forecasts are provided in terms of value (USD) for all segments.
Spain Cloud Computing Market Research FAQs
How big is the Spain Cloud Computing Market?
The Spain Cloud Computing Market size is expected to reach USD 8.21 billion in 2024 and grow at a CAGR of 17.71% to reach USD 18.56 billion by 2029.
What is the current Spain Cloud Computing Market size?
In 2024, the Spain Cloud Computing Market size is expected to reach USD 8.21 billion.
Who are the key players in Spain Cloud Computing Market?
Amazon Web Services, Inc, Microsoft Corporation, Google LLC, Oracle Corporation and IBM Corporation are the major companies operating in the Spain Cloud Computing Market.
What years does this Spain Cloud Computing Market cover, and what was the market size in 2023?
In 2023, the Spain Cloud Computing Market size was estimated at USD 6.76 billion. The report covers the Spain Cloud Computing Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Spain Cloud Computing Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Spain Cloud Computing Industry Report
Statistics for the 2024 Spain Cloud Computing market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Spain Cloud Computing analysis includes a market forecast outlook for 2024 to 2029) and historical overview. Get a sample of this industry analysis as a free report PDF download.
