Public Cloud Global Market Report 2024

The public cloud market has grown rapidly in recent years. It will grow from $588.53 billion in 2023 to $702.82 billion in 2024 at a compound annual growth rate (CAGR) of 19.4%. The expansion observed in the historical period can be ascribed to the augmentation of computing power, the burgeoning entertainment industry, advancements in product design and prototyping, increased activity in automotive design and testing, a heightened focus on training and education, and the realization of cost savings. These factors collectively contributed to the overall growth during this historical period.

The public cloud market is expected to see rapid growth in the next few years. It will grow to $1434.35 billion in 2028 at a compound annual growth rate (CAGR) of 19.5%. The anticipated growth in the forecast period can be attributed to the evolving demands in gaming and entertainment, the ongoing development of autonomous vehicles, advancements in healthcare simulation, the increasing use of environmental simulation, and progress in scientific research. Major trends expected during this forecast period encompass the adoption of Industry 4.0 and digital twins, the utilization of cloud-based rendering services, cross-industry collaboration, integration of artificial intelligence (AI) and machine learning, as well as a heightened emphasis on realism and high-fidelity graphics. These trends collectively shape the trajectory of growth in the specified industries and applications in the coming period.

The anticipated growth of the public cloud market is expected to be driven by the increasing adoption of 5G technology. 5G, the fifth generation of mobile networks, introduces a transformative network that aims to connect virtually everyone and everything, including machines, objects, and devices. This technology revolutionizes businesses with faster speeds, reduced latency, and expanded capacity, enabling advanced applications such as augmented reality/virtual reality (AR/VR), edge computing, and the Internet of Things (IoT). Additionally, 5G enhances reliable access to cloud services and virtual computers through mobile devices. According to 5G Americas, the global number of 5G wireless connections reached 1.05 billion in 2022, indicating a 76% increase from the end of 2021. The projections indicate further growth, reaching 1.9 billion by the end of 2023 and 5.9 billion by the end of 2027. Therefore, the rising use of 5G technology is a key driver propelling the growth of the public cloud market.

The growing number of small and medium-sized enterprises (SMEs) is expected to contribute to the expansion of the public cloud market. SMEs, falling within a specific size range in terms of employees, annual revenue, or other criteria, are increasingly turning to public cloud services for their numerous advantages. These benefits include data storage, security, compliance, and scalability, enhancing operational efficiency and competitiveness for SMEs. According to Oberlo, the count of small businesses in the United States grew to 33.2 million in 2022, marking a 2.2% increase from the 32.5 million recorded in 2021. This surge in SMEs underscores the growing demand for public cloud services, making it a significant factor driving the market's growth.

Technological advancements stand out as a prominent trend in the public cloud market, with major companies actively focusing on innovation to maintain their market positions. For instance, in April 2021, RiverMeadow Software Inc., a US-based provider of Cloud Migration and Disaster Recovery Software and Services, introduced new capabilities to its Cloud Migration Platform. This enhancement allows customers the flexibility to carry out either virtual machine (VM)-based or operating system (OS)-based migrations to any cloud, making RiverMeadow the only Multi-Cloud Migration Platform offering such options. This includes migration to popular public clouds such as Microsoft Azure, Google Cloud Platform (GCP), or Amazon Web Services (AWS), as well as facilitating migrations between public clouds or from public cloud to private or on-premises environments.

Major companies in the public cloud market are also investing in the development of innovative solutions, such as the hybrid cloud mesh. This distributed IT system combines elements of both public and private clouds, along with on-premises infrastructure, creating a flexible and interconnected environment. In May 2023, International Business Machines Corporation (IBM), a US-based technology innovator, launched the 'IBM Hybrid Cloud Mesh,' a Software as a Service (SaaS) offering designed to enable enterprises to manage their hybrid multicloud infrastructure efficiently. This solution automates processes, monitors connectivity applications between private and public clouds, and enhances overall management capabilities for organizations operating in diverse cloud environments.

In February 2021, Hewlett-Packard Enterprise (HPE), a US-based information technology company, acquired CloudPhysics to enhance its AI-driven analytics capabilities. This strategic acquisition allows HPE to provide more comprehensive cloud management solutions to its customers, offering technology recommendations based on AI-driven insights. CloudPhysics, a US-based company specializing in public cloud infrastructure management software, contributes expertise in cloud analytics to broaden HPE's capacity to deliver real-world insights across a range of IT environments. This acquisition reinforces HPE's commitment to staying at the forefront of innovation in the public cloud market.

Major companies operating in the public cloud market report are International Business Machines Corporation, Amazon Web Services Inc., Salesforce Inc., Oracle Corporation, Microsoft Corporation, Google LLC, Cisco Systems Inc., VMware Inc., Verizon Wireless Inc., SAP SE, Rackspace Technology Inc., Fujitsu Limited, CenturyLink Inc., Alibaba Group, NTT Communications Corporation, Workday Inc., Faction Global Infotech Pvt. Ltd., DigitalOcean Holdings Inc., Vultr, Linode LLC, OVH Groupe SA, Joyent Inc., Virtustream Inc., Interoute Communications Ltd., BT Group, Sungard Availability Services, NaviSite Inc., Expedient, Lunavi Inc., Phoenix NAP LLC.

North America was the largest region in the public cloud market in 2023. It is expected to be the fastest-growing region in the global public cloud market during the forecast period. The regions covered in the public cloud market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the public cloud market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary categories of public cloud services include Business Process Services (BPaaS), Application Infrastructure Services (PaaS), Application Services, Management and Security Services, Infrastructure as a Service (IaaS), and Advertising. BPaaS involves outsourcing business processes through a cloud service model, encompassing both hardware and software. This is commonly adopted by various organizations, including small and medium enterprises as well as large enterprises. Different end-users, such as those in discrete manufacturing, professional services, banking, process manufacturing, retail, among others, utilize these services.

The public cloud market research report provides public cloud market statistics, including public cloud industry global market size, regional shares, competitors with a public cloud market share, detailed public cloud market segments, market trends, and opportunities, and any further data you may need to thrive in the public cloud industry. This public cloud market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The public cloud market consists of revenues earned by entities by providing cloud computing services such as compute and storage services, development-and-deployment services, and applications availability on-demand services. The market value includes the value of related goods sold by the service provider or included within the service offering. The public cloud market also includes sales of networking equipment, such as switches, routers, firewalls, load balancers, storage arrays, backup devices, and servers. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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