South Korea Cloud Computing Market

Market Overview:

The South Korea cloud computing market size reached US$ 3.0 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 6.9 Billion by 2028, exhibiting a growth rate (CAGR) of 14.9% during 2023-2028. The rising incidences of cybersecurity threats and data breaches, increasing emphasis on digital education and e-learning, and the widespread adoption of cloud computing solutions in the healthcare industry are among the key factors driving the market growth.

Cloud computing refers to the delivery of computing services, including storage, processing power, databases, and software, over the Internet. It allows easy scaling of resources and enables businesses to adapt to changing needs without significant upfront investments. It provides access to resources from anywhere and facilitates remote work and collaboration. It supports the processing and analysis of large datasets, which makes it ideal for data-intensive tasks and machine learning. It assists businesses in reducing capital expenditure by eliminating the need to purchase and maintain hardware. Besides this, it provides robust security features, including data encryption and secure user access controls, thereby safeguarding sensitive information.

Rising incidences of cybersecurity threats and data breaches are catalyzing the demand for cloud computing solutions. Additionally, the increasing adoption of a multi-cloud approach to avoid vendor lock-in and optimize the capabilities of different cloud service providers is offering a favorable market outlook. Apart from this, the rising emphasis on digital education and e-learning is driving the demand for cloud-based platforms for remote learning, online classrooms, and educational content delivery. Furthermore, the integration of artificial intelligence (AI) and machine learning (ML) is improving data analytics and decision-making processes. Moreover, the widespread adoption of electronic health records (EHRs) and telemedicine services is increasing the need for secure cloud solutions to store and manage sensitive medical data.

South Korea Cloud Computing Market Trends/Drivers:

Government support and initiatives

The governing authorities are undertaking various initiatives to promote the adoption of cloud computing technologies across the country. They are investing in building robust cloud infrastructure, including state-of-the-art data centers to create a reliable and efficient environment for businesses. Additionally, the provision of tax benefits and financial grants to enterprises that adopt cloud computing solutions is positively influencing the market. Apart from this, strategic collaborations with the private sector to expedite the adoption of cloud services in different industries, such as healthcare and finance, are strengthening the growth of the market. Furthermore, governing agencies are emphasizing on digital transformation across industries, which is offering a favorable market outlook.

Rapid digitalization and technological advancements

The rising popularity of remote working models is driving the need for reliable and secure access to data and applications from anywhere. Along with this, the rapid digitalization of businesses is catalyzing the demand for scalable and flexible IT solutions like cloud computing as it enables companies to easily adjust their operations in response to market demands, thereby driving adoption. Apart from this, the development of advanced technologies like big data and machine learning is increasing the demand for robust computing power. Cloud services enable quick deployment of applications and resources, which allows businesses to stay competitive in a fast-paced digital landscape.

South Korea Cloud Computing Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the South Korea cloud computing market report, along with forecasts at the country level from 2023-2028. Our report has categorized the market based on service, workload, deployment mode, organization size and vertical.

Breakup by Service:

• Infrastructure as a Service (IaaS)
• Platform as a Service (PaaS)
• Software as a Service (SaaS)
   

Software as a service (SaaS) dominates the market

A detailed breakup and analysis of the market based on the service has also been provided in the report. This includes infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS). According to the report, software as a service (SaaS) holds the largest market share as it eliminates the need for businesses to purchase, install, and maintain software applications, thereby reducing upfront costs and ongoing maintenance expenses. Additionally, it allows businesses to deploy solutions quickly without involving an extensive IT infrastructure. Its scalable nature enables companies to easily add or remove users, adjusting to their needs without incurring significant expenses. Apart from this, SaaS applications come with various integrated features like analytics and reporting, which provides businesses with valuable insights into their operations. Furthermore, it usually operates on a subscription basis, providing flexibility to businesses.

Breakup by Workload:

• Application Development and Testing
• Analytics and Reporting
• Data Storage and Backup
• Integration and Orchestration
• Resource Management
• Others
   

Resource management holds the majority of the market share

A detailed breakup and analysis of the market based on the workload has also been provided in the report. This includes application development and testing, analytics and reporting, data storage and backup, integration and orchestration, resource management, and others. According to the report, resource management accounted for the largest market share as it allows businesses to streamline the deployment, monitoring, and scaling of computing resources and helps reduce the complexity of managing multiple assets. Additionally, efficient resource management helps in optimal utilization of computing resources, leading to cost savings. Businesses can allocate or deallocate resources based on real-time needs, minimizing wastage and operational costs. Apart from this, resource management aids in compliance with various industry regulations by ensuring that resources are allocated and used in a manner that meets regulatory standards for data handling, storage, and processing. Moreover, the adoption of resource management helps in optimal utilization of computing resources, leading to cost savings.

Breakup by Deployment Mode:

• Public
• Private
• Hybrid
   

Public represents the largest market segment

The report has provided a detailed breakup and analysis of the market based on the deployment mode. This includes public, private, and hybrid. According to the report, public accounts for the majority of the market share as public cloud services are designed to be easily accessible over the internet, requiring no special infrastructure or software for access. This convenience encourages widespread adoption across various industries. Additionally, businesses can quickly deploy applications and services on a public cloud and adapt swiftly to changing market demands. Apart from this, public clouds offer virtually limitless scalability, which makes it easier for organizations to expand or reduce their operations based on real-time needs. Moreover, utilizing public cloud services allows businesses to offload the responsibility of managing IT infrastructure, thereby enabling them to focus on their core activities.

Breakup by Organization Size:

• Large Enterprise
• Small and Medium Enterprise
   

Large enterprise holds the largest market share

A detailed breakup and analysis of the market based on the organization size has also been provided in the report. This includes large enterprise and small and medium enterprise. According to the report, large enterprise accounted for the largest market share as it has complex and resource-intensive operations that require robust computing power, storage, and networking capabilities. Additionally, many large enterprises operate across different geographical regions, which drives the demand for cloud computing solutions as they enable seamless operations and facilitate data sharing, communication, and collaboration among dispersed teams. Apart from this, the sheer volume of data generated and managed by large enterprises necessitates scalable and reliable computing solutions. Cloud computing offers an effective way to handle massive data, including storage, analysis, and data-driven decision-making. Moreover, cloud computing platforms offer customizable solutions that can be tailored to meet the specific needs of large enterprises.

Breakup by Vertical:

• BFSI
• IT and Telecom
• Retail and Consumer Goods
• Energy and Utilities
• Healthcare
• Media and Entertainment
• Government and Public Sector
• Others
   

BFSI represents the largest market segment

The report has provided a detailed breakup and analysis of the market based on the vertical. This includes BFSI, IT and telecom, retail and consumer goods, energy and utilities, healthcare, media and entertainment, government and public sector, and others. According to the report, BFSI represented the largest segment as this sector generates large volumes of data. Cloud computing offers scalable solutions for efficiently managing and analyzing this data, which provides valuable insights for decision-making and risk assessment. Additionally, cloud computing eliminates the need for BFSI institutions to invest in and maintain expensive physical data centers, which aids in reducing capital and operational expenditures. Apart from this, cloud-based solutions enable faster development and deployment of new financial products and services. Furthermore, the high availability and disaster recovery capabilities of cloud services ensure business continuity and assist in financial operations that require real-time processing with minimal or no downtimes.

Breakup by Region:

• East
• West
• Southwest
• Southeast
   

West holds the majority of the market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include east, west, southwest, and southeast. According to the report, West exhibits a clear dominance in the market as the region has a well-established IT infrastructure, including high-speed internet and state-of-the-art data centers. Additionally, leading corporations and financial institutions are headquartered in cities like Seoul and Incheon. Apart from this, the availability of a highly skilled and tech-savvy workforce in the western part of South Korea supports the complex needs of the cloud computing market. Furthermore, the western part of South Korea, particularly areas around Seoul, is known as a technological and innovation hub. Moreover, the presence of leading educational and research institutions in this area contributes to continuous research and development (R&D) activities in cloud technology.

Competitive Landscape:

Companies are constantly expanding their service offerings to include not just storage solutions but also computing power, networking services, and more specialized products like machine learning and analytics tools. Additionally, many cloud providers are extending their reach by setting up data centers in different regions. This enables them to better comply with local data regulations and improve service delivery by reducing latency. Apart from this, they are investing heavily in enhancing the security features of their cloud services, including encryption, multi-factor authentication, and compliance certifications. Moreover, various cloud computing firms are entering into partnerships with other technology companies, software developers, and even traditional businesses to create bundled solutions that offer more value to the end-user.

The market research report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided.

South Korea Cloud Computing Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the South Korea cloud computing market from 2017-2028.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the South Korea cloud computing market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the South Korea cloud computing industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.