Public Cloud - Worldwide

Worldwide

Revenue in the Public Cloud market is projected to reach €717.10bn in 2024.
Software as a Service dominates the market with a projected market volume of €304.40bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 18.75%, resulting in a market volume of €1,693.00bn by 2029.
The average spend per employee in the Public Cloud market is projected to reach €201.40 in 2024.
In global comparison, most revenue will be generated in the United States (€360.20bn in 2024).

Key regions: United States, Germany, China, Japan, United Kingdom

Definition:

A public cloud is defined as the digital infrastructure and computing resources that are managed by a service provider. Examples of public cloud computing resources include virtual machines, storage, and services, all of which are available for purchase with flexible (e.g., pay as you go and subscription) business models. Such payment options make it possible for customers to access, scale, and utilize resources as needed. Public cloud solutions make it possible for users to save on IT costs, increase their efficiency, and take advantage of advanced technologies without having to invest in long-term IT solutions. Public cloud service providers own and maintain the physical infrastructure, hardware, and software. Users only need to pay for the computing resources that they require. The Public Cloud market refers to the companies that provide these cloud computing resources and services to individuals, businesses, and organizations.

Structure:

The Public Cloud market is structured into five markets based on the type of service models provided by the companies.

The Infrastructure as a Service (IaaS) market covers the resources and services related to the data center infrastructure.
The Platform as a Service (PaaS) market covers the resources and services related to the virtual environments used for software development.
The Software as a Service market (SaaS) market covers the resources and services related to software applications that can be accessed via a web browser.
The Business Process as a Service (BPaaS) market covers the resources and services related to the various business processes such as finance and accounting, human resources, customer service, and supply chain management, all delivered through the cloud.
The Desktop as a Service (DaaS) market covers the resources and services related to virtual desktop environments, which are accessible from any device with an internet connection.

Additional Information:

The public cloud market comprises revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players of the public cloud market include companies such as Amazon (Amazon web services), Microsoft (Azure), Google (Cloud), and IBM (Cloud).

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Analyst Opinion

The Public Cloud market worldwide is experiencing steady growth, driven by factors such as increasing demand for digital solutions, growing awareness of the benefits of cloud services, and the convenience of online offerings. The average growth rate of the market is influenced by various sub-markets, including Infrastructure as a Service, Platform as a Service, and Software as a Service, among others. The overall growth is also impacted by factors such as technological advancements, cost-effectiveness, and scalability of cloud services.

Customer preferences: As more businesses and organizations move towards remote work and digital operations, the demand for public cloud services has skyrocketed. This trend is driven by the need for secure and flexible solutions that can support remote collaboration and data storage. Additionally, the rise of IoT devices and edge computing has further fueled the demand for public cloud services, as these technologies require reliable and scalable cloud infrastructure to function effectively.

Trends in the market: In the Worldwide Public Cloud Market, there is a growing trend towards the adoption of hybrid cloud solutions, where organizations use a combination of public and private cloud services to meet their specific needs. This trend is driven by the need for greater flexibility and cost-effectiveness, as well as the increasing demand for data privacy and security. This trajectory is significant for industry stakeholders as it presents new opportunities for cloud service providers to offer tailored solutions and for organizations to optimize their cloud strategies. However, this trend also raises concerns about interoperability and data governance, which may require further collaboration and standardization efforts among industry players.

Local special circumstances: In countries such as China and Japan, the Public Cloud Market is experiencing rapid growth due to high demand for digital transformation in various industries such as retail, manufacturing, and healthcare. This is fueled by the government's initiatives to promote cloud adoption and the increasing trend of remote work. In Europe, strict data privacy laws and regulations are influencing the market, with many companies opting for European-based cloud providers to comply with GDPR. In the Middle East, the market is driven by the need for cost-effective and flexible IT solutions, as well as the government's push for digitalization and smart city initiatives. These unique factors contribute to the diverse landscape of the global Public Cloud Market.

Underlying macroeconomic factors: The Public Cloud Market is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with supportive regulatory environments and significant investments in cloud technologies are experiencing faster market growth compared to regions with regulatory challenges and limited IT funding. Moreover, the increasing adoption of cloud computing by businesses of all sizes and the growing trend of remote work are driving the demand for public cloud solutions, further fueling market expansion.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the money spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of telecommunications infrastructure. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.