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    Public Cloud Market

    ID: MRFR/SEM/1684-CR
    179 Pages
    Shubham Munde
    February 2024

    Public Cloud Market Research Report By Service Model (IAAS, SAAS, PAAS) By Organization Size (Small & Medium Enterprises and Large Enterprises), By Industry (IT & Telecommunication, Manufacturing, BFSI, Retail, Healthcare, Government, Aerospace & Defense, and Others), and By Region (North America, Europe, Asia-Pacific, Middle East & Africa, and South America) –Industry Size, Share and Forecast Till 2032

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    Public Cloud Market Summary

    As per Market Research Future Analysis, the Global Public Cloud Market was valued at USD 607.57 Billion in 2023 and is projected to reach USD 2,580.29 Billion by 2035, growing at a CAGR of 12.81% from 2025 to 2035. The increasing demand for AI, machine learning, and IoT is driving this growth, as these technologies require robust data storage and management solutions. Public cloud services, particularly SaaS, are becoming essential for businesses, allowing them to access software applications over the internet without heavy investments in IT infrastructure. North America leads the market, supported by high internet penetration and a strong presence of cloud technology firms.

    Key Market Trends & Highlights

    The public cloud market is experiencing significant growth driven by technological advancements and increasing adoption across various sectors.

    • Public Cloud Market Size in 2023: USD 607.57 Billion
    • Projected Market Size by 2035: USD 2,580.29 Billion
    • CAGR from 2025 to 2035: 12.81%
    • SaaS dominates the market, providing businesses with flexible and scalable software solutions.

    Market Size & Forecast

    2023 Market Size USD 607.57 Billion
    2024 Market Size USD 685.38 Billion
    2035 Market Size USD 2,580.29 Billion
    CAGR (2025-2032) 12.81%

    Major Players

    Major players include AWS, Microsoft, Google, Alibaba, IBM, Salesforce, and Oracle.

    Public Cloud Market Trends

    The Public Cloud Market is witnessing significant trends driven by increasing digital transformation across various industries. The adoption of cloud computing is largely fueled by organizations seeking to enhance operational efficiency and reduce IT costs. As businesses continue to shift from traditional on-premises infrastructures to flexible and scalable cloud solutions, there is a marked emphasis on improving data security and compliance with regulatory standards. Governments worldwide are promoting cloud initiatives to support critical infrastructure and stimulate economic growth, underscoring the importance of public cloud services in digital strategy.

    Companies are realizing the benefits of subscription-based services, which lower upfront costs and encourage ongoing improvements.

    Additionally, with the growing emphasis on sustainability, there is a notable trend towards adopting eco-friendly cloud solutions that align with corporate social responsibility objectives. In the global landscape, these trends present a compelling narrative as businesses strive to remain competitive, agile, and responsible in their cloud adoption journey.

    The Global Public Cloud Market is poised for robust growth as organizations increasingly recognize the value of scalable and flexible IT solutions to enhance operational efficiency and drive innovation.

    U.S. Department of Commerce

    Public Cloud Market Drivers

    Growing Data Generation

    The Global Public Cloud Market Industry is significantly influenced by the exponential growth of data generation across various sectors. With the proliferation of IoT devices, social media, and digital transactions, organizations are inundated with vast amounts of data. Public cloud services offer scalable storage and advanced analytics capabilities, enabling businesses to harness this data for insights and decision-making. As the volume of data continues to rise, the demand for cloud solutions is expected to increase correspondingly. This trend not only supports the growth of the market but also emphasizes the importance of cloud technologies in managing and analyzing big data.

    Market Growth Projections

    The Global Public Cloud Market Industry is poised for substantial growth, with projections indicating a market size of 2580.3 USD Billion by 2035. This growth trajectory is supported by various factors, including increased digital transformation, remote work adoption, and the rising demand for data analytics. The market is expected to expand at a compound annual growth rate of 12.81% from 2025 to 2035, reflecting the ongoing shift towards cloud-based solutions across industries. As organizations continue to recognize the strategic advantages of public cloud services, the market is likely to witness sustained momentum in the coming years.

    Rapid Digital Transformation

    The Global Public Cloud Market Industry is experiencing rapid digital transformation as businesses increasingly adopt cloud technologies to enhance operational efficiency. Organizations are migrating their workloads to the cloud to leverage scalability, flexibility, and cost-effectiveness. In 2024, the market is projected to reach 685.4 USD Billion, reflecting a growing reliance on cloud solutions. This trend is driven by the need for businesses to remain competitive in a digital-first environment, where agility and innovation are paramount. As companies continue to embrace digital transformation, the demand for public cloud services is expected to surge, further propelling market growth.

    Increased Adoption of Remote Work

    The Global Public Cloud Market Industry is witnessing a surge in demand due to the increased adoption of remote work practices. Organizations are leveraging cloud solutions to facilitate collaboration and communication among distributed teams. Public cloud services provide the necessary infrastructure for remote access to applications and data, ensuring business continuity. As companies invest in cloud technologies to support their remote workforce, the market is projected to grow significantly. This shift is indicative of a broader trend towards flexible work arrangements, which is likely to sustain the momentum of the public cloud market in the coming years.

    Emergence of AI and Machine Learning

    The Global Public Cloud Market Industry is being transformed by the emergence of artificial intelligence and machine learning technologies. Cloud providers are increasingly offering AI and ML services, allowing organizations to integrate these advanced capabilities into their operations. This integration enhances decision-making, automates processes, and improves customer experiences. As businesses recognize the potential of AI and ML in driving innovation, the demand for public cloud services is likely to escalate. The market is projected to grow at a CAGR of 12.81% from 2025 to 2035, reflecting the increasing reliance on cloud-based AI solutions.

    Regulatory Compliance and Security Needs

    The Global Public Cloud Market Industry is shaped by the growing emphasis on regulatory compliance and security needs. Organizations are increasingly concerned about data privacy and protection, prompting them to adopt cloud solutions that offer robust security features. Public cloud providers are investing in advanced security measures to ensure compliance with regulations such as GDPR and HIPAA. This focus on security not only mitigates risks but also builds trust among customers. As regulatory requirements continue to evolve, the demand for secure public cloud services is expected to rise, further driving market growth.

    Market Segment Insights

    Public Cloud Market Service Model Insights

    The Public Cloud Market has experienced substantial growth, particularly within the Service Model segment, which is further divided into IAAS, SAAS, and PAAS categories. In 2024, the total market value reached 685.38 USD Billion, and projections suggest that it will increase significantly to 2580.29 USD billion by 2035. Each sub-segment plays a critical role in shaping the landscape of cloud services. IAAS, valued at 185.2 USD Billion in 2024, is predicted to expand dramatically to 1419.942 USD Billion by 2035, indicating a major shift toward infrastructure solutions that allow businesses to manage their operations with greater flexibility and cost efficiency.

    The prominence of IAAS lies in its ability to provide scalable computing resources, which organizations increasingly seek in the face of evolving technological demands and the need for digital transformation. SAAS, which is valued at 310.0 USD Billion in 2024, is also expected to grow, achieving 1990 USD Billion by 2035, demonstrating its dominance in offering software applications via the cloud. This service model supports collaboration and operational efficiency, allowing end-users to optimize their software use without the burden of physical installations.

    PAAS, valued at 190.18 USD Billion in 2024, is projected to reach 1158.868 USD Billion by 2035, further solidifying its importance as a platform that enables developers to create, test, and deploy applications efficiently. The significance of PAAS lies in its ability to streamline the development process and foster innovation in application design, making it vital for organizations aiming to accelerate their growth and enhance their software capabilities.

    Public Cloud Market Organization Size Insights

    The Public Cloud Market is anticipated to reach a valuation of 685.38 USD billion by 2024, demonstrating robust growth opportunities driven by the increasing adoption of cloud solutions among diverse organization sizes. Small and Medium Enterprises play a crucial role in this market, as they leverage public cloud services to enhance operational efficiency, reduce costs, and access advanced technologies without substantial upfront investment. Meanwhile, Large Enterprises dominate this space due to their vast data requirements and the need for sophisticated cloud services to streamline processes.

    The Public Cloud Market segmentation reflects these dynamics, with majorities in both categories indicating a trend towards scalable solutions that accommodate varying business needs. The market growth is propelled by factors such as the rising demand for flexibility, security, and collaboration tools, while challenges like security concerns and compliance requirements persist. Nevertheless, opportunities remain abundant, particularly in increasing cloud-based innovations and services that cater to both Small and Medium Enterprises and Large Enterprises, thereby ensuring a balanced and widespread benefit across the Global landscape.

    Public Cloud Market Insights

    The Public Cloud Market within the Industry segment represents a dynamic and rapidly evolving landscape. By 2024, the market is expected to be valued at 685.38 USD Billion and is projected to grow significantly by 2035 to reach approximately 2580.29 USD billion. This growth is driven by the rising adoption of cloud services across diverse sectors. In particular, the IT and telecommunications sectors play a major role, enabling better data management and communication solutions. Manufacturing industries leverage the cloud for enhanced operational efficiency and agility.

    The Banking, Financial Services, and Insurance (BFSI) sector is experiencing robust transformation, utilizing cloud technologies for improved customer service and regulatory compliance. Retail businesses are embracing cloud solutions for inventory management and personalized customer experiences. Healthcare is increasingly adopting the cloud for electronic health records and telemedicine, improving patient care. Government agencies are also transitioning to the cloud for better service delivery and data management. Additionally, the Aerospace and Defense sectors utilize cloud services to enhance collaboration and secure data sharing.

    Overall, the Public Cloud Market segmentation highlights the substantial opportunity for growth as various industries adapt to cloud technologies, driven by the need for efficiency, scalability, and innovation.

    Get more detailed insights about Public Cloud Market Research Report – Forecast to 2032

    Regional Insights

    The Public Cloud Market is experiencing considerable growth across various regions, with a total expected valuation of 685.38 USD Billion in 2024, expanding to 2580.29 USD Billion by 2035. North America leads this market, holding a majority with a valuation of 305.0 USD Billion in 2024 and growing to 1153.5 USD Billion by 2035, driven by advanced technology adoption and significant investments. Europe follows with a valuation of 225.0 USD Billion in 2024 and reaching 850.0 USD billion by 2035 as enterprises embrace cloud solutions for improved operational efficiency.

    South America, while smaller, demonstrates potential growth, valued at 50.0 USD billion in 2024 and projected to reach 200.0 USD billion in 2035, reflecting the rising adoption of digital transformation initiatives. The Asia Pacific region, valued at 80.0 USD Billion in 2024, is projected to grow to 450.0 USD Billion by 2035, spurred by increased internet penetration and the need for scalable IT solutions amidst a rapidly digitalizing economy.

    Lastly, the Middle East and Africa represented a valuation of 25.38 USD billion in 2024, with modest growth to 26.79 USD billion in 2035, indicating emerging opportunities influenced by regional innovation initiatives.

    Each region presents unique growth drivers and challenges, contributing significantly to the overall trajectory of the Public Cloud Market revenue.

    Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

    Key Players and Competitive Insights

    The Public Cloud Market is exhibiting dynamic growth as businesses continue to embrace digital transformation strategies fueled by the demand for scalable and cost-effective solutions. The competitive landscape is characterized by a diverse array of players, each striving to capture market share by enhancing their service offerings and expanding their global footprints. Key factors such as technological advancements, the growing adoption of SaaS, PaaS, and IaaS models, and a heightened focus on data security and privacy are shaping competitive strategies within this space.

    Companies are innovating rapidly to differentiate themselves through cutting-edge services like machine learning, artificial intelligence, and advanced data analytics, establishing themselves as indispensable partners for organizations of all sizes looking to leverage cloud technologies for operational efficiency and business agility.

    Oracle has established a formidable presence in the Public Cloud Market by leveraging its long-standing reputation in enterprise software solutions. The company focuses on providing comprehensive cloud applications and platforms that cater to a vast array of industries, thus enabling businesses to enhance their operational frameworks significantly. One of Oracle's remarkable strengths lies in its ability to offer hybrid cloud environments that facilitate smooth transitions for enterprises adopting cloud solutions, coupled with robust data management and analytics capabilities.

    Furthermore, Oracle's strategic partnerships and alliances have reinforced its market presence, contributing to its ability to deliver tailored solutions that address specific client needs in the realm of cloud computing.

    Microsoft stands out in the Public Cloud Market with its Azure platform, which has rapidly gained traction among enterprises seeking to implement cloud solutions. The company's key products and services include a wide range of solutions from cloud infrastructure to advanced analytics, positioning Azure as a comprehensive platform for digital transformation. Microsoft has successfully cultivated a strong global presence through its commitment to innovation, evidenced by ongoing investments in emerging technologies like AI and IoT, which enhance cloud capabilities.

    Additionally, the company has bolstered its market position through strategic mergers and acquisitions aimed at expanding its portfolio and enhancing software integration. This consistent approach has solidified Microsoft's strengths in scalability, security, and user-friendliness, making it a preferred choice for organizations moving to the cloud at a global scale.

    Key Companies in the Public Cloud Market market include

    Industry Developments

    • Q1 2025: Cloud Market Share Q1 2025: AWS Dips, Microsoft And Google Show Growth Oracle increased its global cloud infrastructure services market share to 3 percent in Q1 2025, up from 2 percent in Q1 2024, reflecting growth in its public cloud business.

    Future Outlook

    Public Cloud Market Future Outlook

    The Global Public Cloud Market is projected to grow at a 12.81% CAGR from 2024 to 2035, driven by increasing digital transformation and demand for scalable solutions.

    New opportunities lie in:

    • Develop AI-driven cloud services to enhance operational efficiency.
    • Expand hybrid cloud solutions for businesses seeking flexibility.
    • Invest in cybersecurity measures to address growing data protection concerns.

    By 2035, the Global Public Cloud Market is expected to be a cornerstone of digital infrastructure.

    Market Segmentation

    Public Cloud Market Outlook

    • {""=>["North America"
    • "Europe"
    • "South America"
    • "Asia Pacific"
    • "Middle East and Africa"]}

    Public Cloud Market Regional Outlook

    • North America
    • Europe
    • South America
    • Asia Pacific
    • Middle East and Africa

    Public Cloud Market Service Model Outlook

    • {""=>["Small & Medium Enterprises"
    • "Large Enterprises"]}

    Public Cloud Market Organization Size Outlook

    • {""=>["IT & Telecommunication"
    • "Manufacturing"
    • "BFSI"
    • "Retail"
    • "Healthcare"
    • "Government"
    • "Aerospace & Defense"
    • "Others"]}

    Report Scope

    Report Attribute/MetricDetails
    Market Size 2023607.57 (USD Billion)
    Market Size 2024685.38 (USD Billion)
    Market Size 20352580.29 (USD Billion)
    Compound Annual Growth Rate (CAGR)12.81% (2025 - 2035)
    Report CoverageRevenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year2024
    Market Forecast Period2025 - 2035
    Historical Data2019 - 2024
    Market Forecast UnitsUSD Billion
    Key Companies ProfiledOracle, Microsoft, IBM, Alibaba, Google, Linode, VMware, SAP, DigitalOcean, Red Hat, Salesforce, Rackspace, Amazon, Tencent
    Segments CoveredService Model, Organization Size, Industry, Regional
    Key Market OpportunitiesIncreased demand for remote work, Rising adoption of AI/ML services, Growth in cloud-native applications, Expansion of edge computing solutions, Enhanced cloud security and compliance
    Key Market DynamicsIncreased demand for scalability, cost efficiency, rapid technology adoption, data security concerns, and competitive pricing strategies
    Countries CoveredNorth America, Europe, APAC, South America, MEA

     

    Market Highlights

    Author
    Shubham Munde
    Research Analyst Level II

    With a technical background in information technology & semiconductors, Shubham has 4.5+ years of experience in market research and analytics with the tasks of data mining, analysis, and project execution. He is the POC for our clients, for their consulting projects running under the ICT/Semiconductor domain. Shubham holds a Bachelor’s in Information and Technology and a Master of Business Administration (MBA). Shubham has executed over 150 research projects for our clients under the brand name Market Research Future in the last 2 years. His core skill is building the research respondent relation for gathering the primary information from industry and market estimation for niche markets. He is having expertise in conducting secondary & primary research, market estimations, market projections, competitive analysis, analysing current market trends and market dynamics, deep-dive analysis on market scenarios, consumer behaviour, technological impact analysis, consulting, analytics, etc. He has worked on fortune 500 companies' syndicate and consulting projects along with several government projects. He has worked on the projects of top tech brands such as IBM, Google, Microsoft, AWS, Meta, Oracle, Cisco Systems, Samsung, Accenture, VMware, Schneider Electric, Dell, HP, Ericsson, and so many others. He has worked on Metaverse, Web 3.0, Zero-Trust security, cyber-security, blockchain, quantum computing, robotics, 5G technology, High-Performance computing, data centers, AI, automation, IT equipment, sensors, semiconductors, consumer electronics and so many tech domain projects.

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    FAQs

    What is the expected market size of the Public Cloud Market by 2024?

    The Public Cloud Market is expected to be valued at 685.38 USD billion by the year 2024.

    What is the projected value of the Public Cloud Market by 2035?

    By 2035, the Public Cloud Market is projected to reach a value of 2580.29 USD Billion.

    What is the expected CAGR for the Public Cloud Market during the forecast period of 2025 to 2035?

    The expected compound annual growth rate (CAGR) for the Public Cloud Market from 2025 to 2035 is 12.81%.

    Which region holds the largest market share in the Public Cloud Market by 2024?

    North America holds the largest market share in the Public Cloud Market, valued at 305.0 USD billion by 2024.

    What will be the value of the North American Public Cloud Market by 2035?

    The North American Public Cloud Market is projected to reach a value of 1153.5 USD billion by 2035.

    What are the projected figures for the Public Cloud Market in the Asia Pacific region by 2035?

    The Public Cloud Market in the Asia Pacific region is expected to reach 450.0 USD billion by 2035.

    What will be the estimated market size for IaaS in the Public Cloud Market by 2035?

    The IaaS segment within the Public Cloud Market is expected to be valued at 1419.942 USD billion by 2035.

    Which major players are contributing to the Public Cloud Market?

    Key players in the Public Cloud Market include Oracle, Microsoft, IBM, Alibaba, Google, and Amazon.

    What is the expected market value for SaaS in 2024?

    The SaaS segment of the Public Cloud Market is expected to be valued at 310.0 USD billion in 2024.

    How much is the Middle East and Africa region expected to contribute to the Public Cloud Market by 2035?

    The Middle East and Africa region is projected to contribute 26.79 USD billion to the Public Cloud Market by 2035.

    Public Cloud Market Research Report – Forecast to 2032 Infographic
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