Public Cloud Market

Public Cloud Market Size

Public Cloud Market is forecasted to demonstrate a Compound Annual Growth Rate (CAGR) of 17.6% during the forecast span from 2024 to 2034. In 2023, the market size was assessed at USD 552 billion and is projected to reach USD 3291.7 billion by the completion of 2034.

Public cloud is a type of cloud computing service that is provided by third-party providers over the internet. In this model, computer resources such as virtual machines, storage, and applications are hosted on the provider's infrastructure and consumers are charged on a per-user basis. In addition, users can access these resources remotely with the help of the internet, thus allowing them to scale resources up or down based on their needs without having to maintain actual infrastructure. These cloud services provide benefits such as flexibility, scalability, and cost-effectiveness, as customers only pay for the resources they use. Furthermore, public cloud services relieve enterprises of the work of managing and maintaining complicated IT infrastructure, which allows them to focus on their business objectives. Therefore, businesses can easily manage their IT infrastructure and adjust to evolving demands by using public cloud services of reliable providers such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform.

Market Highlights

Public Cloud Market is anticipated to grow at a robust rate, with projections indicating a 17.6% compound annual growth rate (CAGR) between 2024 and 2034

Public Cloud Market is expected to reach USD 3291.7 billion during the forecast period, driven by the vast global adoption of cloud-based services across various industries. This growth is due to the rising demand for scalable and affordable computing solutions, along with the fast pace of digital transformation initiatives among businesses. Public cloud market is dominated by industry leaders like Amazon Web Services, Microsoft Azure, and Google Cloud Platform, which provide enormous infrastructure and service offerings that are well-suited to meet the needs of various customers. Furthermore, the integration of modern technologies such as edge computing and artificial intelligence is boosting the adoption of public cloud services across diverse industries. Thus, the public cloud market is anticipated to grow as companies transfer more workloads to the cloud to enhance their efficiency. Consequently, this will drive competition for better services among providers and present lucrative opportunities for those in the industry.

  Source: Fatpos Global

Public Cloud Market Segmentation

Software as a Service (SaaS) segment is projected to lead as it provides numerous advantages and ease of deployment

Public Cloud Market is divided based on Service into Infrastructure as a Service, Platform as a Service, and Software as a Service. The Software as a Service (SaaS) segment is projected to lead the public cloud market due to its fundamental benefits in offering accessibility and easy deployment. SaaS offers fully developed applications that are accessible via the internet and relieve users of the burden of managing infrastructure components. These user-friendly methods are extremely helpful for businesses that are seeking to reduce their IT overheads. Additionally, the growing preference for subscription-based software perfectly aligns with SaaS offerings and offers a consistent revenue stream for providers. Thus, as businesses seek to reduce their costs, the software as a service segment will provide a tailored solution without the challenges associated with traditional software deployment methods.

Small & Medium-Sized Enterprise segment will dominate as these companies lack the resources to develop physical infrastructures

Public Cloud Market is classified based on Enterprise Size into Large Enterprises and Small & Medium-Sized Enterprises. The Small and Medium-Sized Enterprises (SMEs) segment is anticipated to lead the Public Cloud Market as SMEs often lack the resources for extensive in-house IT infrastructure, which makes cloud services an appealing option for accessing computing resources without major upfront costs. Additionally, the pay-per-use model of public cloud services is well-suited to the budgetary limitations of SMEs, which allow them to scale resources according to their needs and financial capacity. Small and medium-sized companies benefit from the flexibility provided by public cloud platforms, which enable them to quickly adapt to changing market dynamics and scale their operations when required. For instance, several startups use cloud services for their development and expansion, while small businesses utilize cloud-based collaboration tools to boost their productivity. These factors highlight the growing significance of public cloud solutions for small and medium-sized enterprises.

Source: Fatpos Global

Market Dynamics

Growth Drivers

Growing Need for Digital Transformation is Expected to Promote Market Growth

Organizations around the world are realizing the significance of digital transformation to remain competitive in today's market. This acknowledgment has caused an increase in demand for cloud services, as companies are seeking scalable and adaptive solutions to support their digital ventures. Cloud computing serves as a major catalyst for innovation and grants access to modern technologies like artificial intelligence and big data analytics. In addition, by using cloud services, companies can simplify their operations and improve customer experiences. Besides, cloud-based applications offer remote collaboration and enable smooth workflow management across dispersed teams. Thus, as companies are prioritizing digital transformation to promote growth, the demand for public cloud services is projected to soar in the market.

Emerging Markets and Industry Verticals Will Contribute to the Adoption of Public Clouds

Adoption of cloud computing is expanding beyond traditional markets to include developing economies and diverse industries. In regions like Asia-Pacific, Latin America, and Africa, factors like growing internet penetration and governmental initiatives are aimed at promoting digital infrastructure and boosting the demand for cloud services across businesses. Additionally, industries such as healthcare, education, manufacturing, and retail are increasingly adopting cloud technology to improve their operations and increase competitiveness. Therefore, to capitalize on these opportunities, cloud providers are customizing their products and providing support to meet specific industry demands and regulatory standards. Furthermore, the public cloud market has the potential for steady growth due to the rise in global cloud usage and the untapped potential of developing nations.

Restraints

Security and Compliance Concerns Could Restrict the Growth of the Public Cloud Market

Despite several benefits offered by cloud computing, security, and compliance remains a critical challenge for companies adopting cloud solutions. The consequences of data breaches and unauthorized access to sensitive data are substantial and include financial losses and reputational damage. In addition, while cloud service providers allocate major resources to improve security measures, ensuring strong data protection demands collaborative efforts between providers and clients. Thus, organizations are tasked with implementing strong security protocols, along with encryption mechanisms and access controls to protect their data integrity. Consequently, addressing security and compliance challenges needs a holistic approach to integrating technology and providing personnel training to enhance trust in public cloud services.

Recent Developments

• On October 20, 2022, Microsoft Corporation and UBS unveiled an expansive collaboration aimed at accelerating UBS's adoption of public cloud technologies over the subsequent five years.
• On October 11, 2022, Google LLC (Alphabet Inc.) disclosed that Wayfair successfully transitioned all its data center applications and services to the cloud, with Google Cloud serving as the cornerstone of its cloud strategy. This migration empowers the retailer to enhance business agility and foster technical innovation.
• On June 22, 2022, Oracle Corporation expanded its distributed cloud offerings by introducing OCI-dedicated regions and offering previews of Compute Cloud@Customer.
• In April 2023, Alibaba Cloud, the digital technology arm of Alibaba Group, introduced its cutting-edge large language model, Tongyi Qianwen. This advanced AI model is slated for deployment across all Alibaba subsidiaries to improve user experiences in a cost-efficient manner.

Public Cloud Market

Key Players:

• Amazon Web Services (AWS)
• Microsoft Azure
• Google Cloud Platform (GCP)
• IBM Cloud
• Oracle Cloud
• Alibaba Cloud
• Salesforce Cloud
• VMware Cloud
• Rackspace Technology
• DigitalOcean
• SAP Cloud Platform
• Tencent Cloud
• Hewlett Packard Enterprise (HPE) Cloud
• Red Hat OpenShift
• Dropbox Business
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Public Cloud Market is segmented based on regional analysis into five key regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The North American region is expected to maintain its leading position in the public cloud market as the region has some of the largest cloud service providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). Moreover, North American businesses were early to adopt cloud technology and used its scalability & cost-efficiency to encourage innovation and competition. Additionally, the region benefits from a strong digital infrastructure and substantial investments in cloud research and development. For instance, the dominance of Amazon Web Services is attributed to its large infrastructure and diverse product offerings that cater to the needs of various industries.

Source: Fatpos Global

Impact of COVID-19 on Public Cloud Market

COVID-19 pandemic significantly impacted the public cloud market as it accelerated its growth and adoption globally. Organizations rapidly switched to remote work setups, due to which the demand for cloud services increased as there was a need for remote collaboration tools. This rise in demand is notable across industries such as healthcare, education, and e-commerce, where cloud technology assisted in remote healthcare delivery and digital commerce platforms. Besides, the pandemic highlighted the role of cloud technology in driving innovation and prompted companies to accelerate their digital transformation efforts. Therefore, cloud service providers experienced high demand for their services, which resulted in better revenue and expansion throughout the pandemic.

Public Cloud Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Public Cloud Market Scope and Segments:

Frequently Asked Questions (FAQ):