The public cloud software market in South Korea is expected to surpass 3 trillion won ($2.33 billion) by 2026 helped by increasing demand from local companies seeking operational efficiency through IT digitalization and application modernization, according to a report by IDC Korea on Thursday.

The market size was 1.78 trillion won last year, up by nearly 20 percent from the previous year.

In line with the increasing demand for next-generation software as a service and intelligent software, the market is expected to see an average annual growth rate of 15.5 percent until 2026, reaching 3.61 trillion won in market size, the market tracker said.

In terms of specific segments, the application development and deployment sector is expected to grow by 29.2 percent over the next five years, driven by increasing demand for application development and integration using artificial intelligence, machine learning and IoT technology and data management software.

The application sector is expected to grow by 11.9 percent during the same period due to the increasing demand for SaaS solutions, while the system infrastructure software sector is expected to grow by 11.4 percent due to the demand for solutions that can support multi and hybrid cloud environments and strengthen cloud security.

“Cloud software providers need to prepare AI-based software that can quantify and visualize FinOps (the combination of finance, development, and operation in a cloud environment) systems from an organizational, cost, and billing system perspective, in addition to automation and monitoring software, to respond to market demand,” said Park Seo-young, a senior researcher at IDC Korea.

By Pulse

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