South Korea Cloud Computing Market | Analysis 2019-2032

South Korea Cloud Computing Market by Service Model, Deployment Model, Subscription Model, Enterprise Size, End User – Industry Analysis, Size and Forecast, 2019-2032

Report Format:     | Pages: 110+
Type: Parent Industry Monitor | ID: CCT1537  | Publication: June 2024  |  US$925  |  

South Korea Cloud Computing Market Growth and Performance


  • It's evident that the South Korea cloud computing market size is on track to reach an impressive US$ 10.12 billion in revenue by 2024.
  • This growth trajectory is underpinned by an expected Compound Annual Growth Rate (CAGR) of 9.97% from 2024 to 2032, as forecasted by DataCube Research.

South Korea Cloud Computing Market Outlook

South Korea has rapidly emerged as a global technology powerhouse, and its cloud computing industry is a testament to its commitment to innovation and digital transformation. Organizations across various sectors recognize the value of cloud technology in digitizing business processes, enabling virtual work, and transforming business models. This growing awareness is significantly driving the expansion of the South Korea cloud computing market. The increasing adoption of cloud technology among large enterprises and SMBs across industries such as BFSI, manufacturing, healthcare, and retail is a key factor propelling South Korea cloud computing market growth. Organizations are transitioning towards hybrid cloud models, strategically blending the advantages of public and private clouds to optimize scalability and security. The government's commitment to fostering digital transformation further strengthens market growth, making South Korea one of the leading cloud adopters in the Asia-Pacific region.

The South Korea cloud computing market outlook remains positive, driven by favorable government policies, robust infrastructure, and rising cloud adoption across industries. The government’s initiatives, such as the Korea Digital New Deal, highlight the country's dedication to accelerating digital transformation by promoting widespread cloud adoption in healthcare, education, and social services. Additionally, the Cloud First Policy, enacted in 2018, mandates government agencies to prioritize cloud services over traditional IT infrastructure, further accelerating cloud deployment in the public sector.

South Korea Cloud Computing Market Trends

Several notable South Korea cloud computing market trends are shaping the industry:

  • Smart City Initiatives: Multiple cities in South Korea are deploying cloud-powered smart city programs aimed at improving traffic management, public safety, and citizen services.
  • Edge Computing Integration: Organizations are increasingly integrating edge computing with cloud services to enhance real-time data processing and reduce latency.
  • Hyperscale Data Centers: Equinix and GIC’s investment of $525 million in two hyperscale data centers underscores the growing demand for cloud infrastructure in South Korea.
  • Interconnection Bandwidth Growth: According to Equinix’s Global Interconnection Index, Seoul is set to become a key hub for hyperscale provider interconnection bandwidth in the Asia-Pacific region by 2024.
  • Rise of Domestic Cloud Providers: Homegrown cloud service providers like Naver Cloud and KakaoTalk are expanding their service offerings, increasing competition with global players such as AWS and Microsoft Azure.

South Korea Cloud Computing Market Competitive Lanscape

The South Korea cloud computing market competitive landscape is witnessing intensified competition between global cloud giants and local providers. While international players like AWS, Microsoft Azure, and Google Cloud continue to dominate, domestic companies such as Naver Cloud and KakaoTalk are gaining traction by offering localized cloud solutions tailored for the Korean market. These homegrown providers are expanding their service portfolios, focusing on data sovereignty, regulatory compliance, and industry-specific cloud solutions.

South Korea Cloud Computing Market Developments

The South Korea cloud computing market development is fueled by both public and private sector investments. Key developments include:

  • The Korean New Deal initiative, aimed at accelerating digital transformation and promoting cloud adoption across multiple sectors.
  • The government’s commitment to expanding cloud infrastructure and fostering innovation through incentives and policies.
  • Increased enterprise demand for hybrid and multi-cloud environments to enhance security, scalability, and operational efficiency.

South Korea Cloud Computing Market Scope

 

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