Public Cloud Market Report 2025

The public cloud market size has grown rapidly in recent years. It will grow from $688.33 billion in 2024 to $813.15 billion in 2025 at a compound annual growth rate (CAGR) of 18.1%. The growth in the historic period can be attributed to increased computing power, growth in entertainment industry, product design and prototyping, automotive design and testing, training and education, and cost savings.

The public cloud market size is expected to see exponential growth in the next few years. It will grow to $1.76 trillion in 2029 at a compound annual growth rate (CAGR) of 21.4%. The growth in the forecast period can be attributed to evolving gaming and entertainment needs, autonomous vehicles development, healthcare simulation advances, environmental simulation, scientific research. Major trends in the forecast period include industry 4 and digital twins, cloud-based rendering services, cross-industry collaboration, integration of AI and machine learning, realism and high-fidelity graphics.

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 drive the growth of the public cloud market in the future. SMEs are defined as businesses that meet specific criteria regarding employee count, annual revenue, or other relevant factors. Public cloud services provide various advantages to these enterprises, including data storage, security, compliance, and scalability, all of which enhance their operational efficiency and competitiveness. For example, in October 2023, the UK government department Department for Business & Trade reported that the number of small-scale enterprises rose from 217 in 2022 to 223 in 2023. Additionally, the number of medium-scale enterprises remained stable at 36 in both 2021 and 2022, with a slight increase to 37 in 2023. These figures indicate a positive trend in the growth and development of SMEs, highlighting a favorable environment for entrepreneurial activities. Consequently, the increasing number of small and medium-sized enterprises is propelling the growth of the public cloud market.

Major companies in the public cloud market are concentrating on developing innovative technological solutions, such as public cloud platforms, to improve scalability, flexibility, and cost efficiency for businesses. Public cloud platforms provide cloud computing services through third-party providers over the internet, allowing users to access and utilize shared resources like computing power, storage, and networking. For example, in September 2024, Avaya LLC, a US-based technology firm, launched its Experience Platform (AXP) Public Cloud in India, featuring a range of advanced customer experience solutions designed for various sectors, including healthcare and telecommunications. Key features of the platform include digital access via LivePerson integration, AI self-service capabilities with the Virtual Agent Ready framework, and improved customer support through the generative AI assistant ‘Avaya Ada.’ Additionally, the platform integrates analytics tools through partnerships with Microsoft’s Power BI and Calabrio for enhanced workforce engagement.

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 October 2024, ITC Infotech, an India-based provider of business solutions and technology services, acquired Blazeclan Technologies for $58.2 million. This acquisition aims to strengthen ITC's cloud capabilities by leveraging Blazeclan's multi-cloud expertise to assist clients in their digital transformation and to enhance its global presence through Cloud Competency Centers. Blazeclan Technologies is an India-based company specializing in cloud services, focusing on digital transformation and public cloud solutions within the IT services sector.

Major companies operating in the public cloud market include 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 2024. 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.

A public cloud is a type of cloud computing where third-party providers deliver computer services and infrastructure over the internet to multiple customers. It provides a fully virtualized environment, enabling on-demand computing and self-service provisioning.

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 is one of a series of new reports that 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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