Public Cloud Market Size was valued at USD 607.57 Billion in 2023. The Public Cloud market industry is projected to grow from USD 685.3823 Billion in 2024 to USD 1797.32 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.81% during the forecast period (2024 - 2032).Â
With the growing use of internet and surging data storage issues due to limited storage capacities in devices, cloud plays a crucial role in handling data effectively. Public cloud is a platform offered by third parties like AWS, IBM, Google, and others which enable internet users to upload files on cloud for free or as per plans offered by the individual partners.Â
This not only supports the government and individuals to store data effectively but also secures it and enable individuals to access data from anywhere. This process also supports the idea of sustainability, and it is environmental friendly, as it reduces paper work and the requirement of multiple devices to handle it like hard drives, pen drives, and others.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
IoT and artificial intelligence (AI) are examples of advanced computing technologies that are widely used in commercial sectors and industries. The increased adoption of IoT solutions generates massive amounts of data, and cloud computing plays a vital role in storing and managing the data. Many young entrepreneurs are operating their operations by mixing AI and the cloud. Veritone, for instance, has developed an AI-based operating system based on a cognitive computing platform that is native to the cloud for evaluating the huge amounts of information collected from diverse sources.Â
Another company, Quantifi, analyzes enormous amounts of information using cloud-based AI to optimize the placement of digital advertisements for different businesses. Similarly, all major AI and IoT-based apps are cloud-powered in the backend, and their increasing penetration in varied industry verticals is providing a variety of potential prospects for the public cloud market.
Furthermore, these technologies are transforming the market by assisting individuals in monitoring, analyzing, and displaying unprocessed data. Using these emerging technologies in combination with cloud solutions helps firms improve their visualization capabilities and make complex data accessible and usable. The expanding use of Al and ML technologies in enterprises has increased data utilization while decreasing data storage concerns. These technologies also help to boost business efficiency, improve decision-making processes, and reduce operating costs.
Businesses are embracing AI-powered solutions to become more strategic, efficient, and insight-driven. Al can automate repetitive and difficult procedures to enhance production and execute data analysis without the need for manual intervention. IT departments can also use Al to monitor and manage critical workflows. Companies that provide cloud solutions and services are always focusing on R&D, product upgrades, and new product releases that incorporate Al and ML. For instance, Microsoft Corporation launched Azure Health Data Services in March 2022. It is a platform as a service (PaaS) that is intended to accommodate both analytical and transactional workloads. It combines health data and supports cloud-based artificial intelligence (AI), exclusively supporting protected health information (PHI). Thus, the increasing adoption of IoT, AL, and ML is expected to drive market growth.
Based on Service Model, the Public Cloud Market segmentation includes infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS). SaaS dominates the market in 2022. SaaS provides businesses with access to software applications over the internet, eliminating the need for businesses to install and manage software on their own IT infrastructure. SaaS providers typically offer a range of business applications, including email, productivity suites, and customer relationship management (CRM) tools.
SaaS has become a popular option for businesses of all sizes, as it offers numerous benefits over traditional software installation and management. One key advantage is that it reduces the need for businesses to invest in expensive hardware and IT infrastructure, as all the software applications are hosted and managed by the SaaS provider. This also means that businesses can scale their software usage up or down as needed, without having to worry about managing physical infrastructure. It also offers more flexibility and accessibility compared to traditional software installation. Since the applications are accessed over the internet, users can work from anywhere with an internet connection and on any device, including laptops, tablets, and smartphones. This is particularly important in today's increasingly mobile and remote workforce.
Furthermore, SaaS providers often offer regular software updates and maintenance, ensuring that the applications are always up-to-date and secure. This means businesses can focus on their core operations without worrying about software maintenance and security issues.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Based on Organization Size, the Public Cloud Market segmentation includes Small and Medium Enterprises and Large Enterprises. With the growing startup culture, especially across emerging economies supported by government initiatives, the SMEs numbers are growing. Small and medium enterprises, also known as SMEs, are organizations that have fewer than 500 employees and generate lower revenue compared to large enterprises. SMEs may have limited IT resources and budgets and may not have in-house IT teams. Cloud computing provides SMEs with access to affordable, scalable, and reliable IT resources, without the need for significant upfront investments in hardware and infrastructure. Cloud solutions enable SMEs to improve their productivity, collaboration, and data security, while also reducing costs and increasing their agility.
Based on the Industry, the Public Cloud Market segmentation includes IT & Telecommunication, Manufacturing, BFSI, Retail, Healthcare, Government, Aerospace and Defense, Others. By Industry, BFSI segment holds the majority market share in 2022 contributing 25.1% of the market share. The Banking, Financial Services, and Insurance (BFSI) industry is one of the most regulated and data-intensive industries. Cloud computing solutions enable BFSI companies to securely store, manage, and analyze their data, while also improving their customer engagement and reducing their costs. Cloud solutions also enable BFSI companies to enhance their risk management, fraud detection, and compliance with regulatory requirements.
Followed by IT & Telecommunication, the IT & Telecommunication industry is one of the largest adopters of cloud computing solutions. Cloud computing enables IT & Telecommunication companies to provide efficient and cost-effective services to their customers, while also improving their own internal operations. Cloud solutions allow these companies to scale up or down quickly, to keep pace with the changing market demands, and to reduce the burden of maintaining and upgrading hardware and software.
Public Cloud Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. North America dominates the market, growth in the region is attributed to improved internet access, higher adoption of cloud technology for increased automation and agility, expanding government initiatives to build IoT connections, and the need for enterprises to offer work from home options for employees in the region. Public cloud computing adoption in the region due to the ever-increasing demand to improve the customer experience drives the market growth in the region. Furthermore, the region is the location of a variety of cloud technology firms that are cooperating with telecom providers, industry leaders, and others to provide cloud solutions to organizations. For instance, Ingram Micro, a Mexican firm, has partnered with Cisco to provide cloud solutions to its customers. Such new advancements are projected to promote market growth during the forecast period.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
According to the MRFR research, the United States held the largest market share in 2022, and this trend is predicted to continue till 2032, followed by Canada and Mexico. Furthermore, the United States has well-established end-user sectors and suppliers that are constantly adapting to current technologies in order to boost corporate productivity and labor efficiency. Several small and large public cloud solution providers, including Amazon, Microsoft, Google, VMware, Salesforce, Oracle, and IBM, are based in the United States and are major drivers of the country's public cloud market expansion. In North America, around 94% of US corporate IT decision-makers use at least one type of public cloud deployment.
Furthermore, cloud storage is the top IT/operational priority for 64% of American infrastructure in the upcoming year. Managed service providers and global service integrators assist businesses in the United States with cloud migration projects. The United States accounts for 44% of global public cloud provider revenue and 51% of global hyperscale data center capacity.
The public cloud market has witnessed significant growth over the forecast period due to increasing penetration of cloud services among SMES and increasing demand for AI, machine learning, and the internet of things. There are several domestic, regional, and global players operating in the public cloud market who continuously strive to gain a significant share of the overall market. During the study, MRFR has analyzed some of the major players in the public cloud market who have contributed to the market growth. These include Alibaba Group Holding Limited, Amazon.com Inc, Adobe Inc, Google LLC, IBM Corporation, Microsoft Corporation, Oracle Corporation, Salesforce.com Inc, SAP SE, Fujitsu Limited, Cisco Systems Inc, VMware Inc, Hewlett-Packard Enterprise, Tencent Cloud, OVH Cloud, LUMEN, Rackspace Cloud.
Among these, AWS, Microsoft, Salesforce, Google, and Alibaba are among the top 5 players in public cloud market. These players focus on expanding and enhancing their product portfolio and services to remain competitive and increase their customer base. Additionally, these players are focusing on partnerships & collaborations to expand their business and customer base to enhance their market position.
Amazon's strategy is based on leveraging its technological capabilities. It follows a cost leadership strategy aimed at offering maximum value to its customers at affordable rates. To increase its sales, the company focuses on improving all aspects of customer experience, including affordability, ease of use, and reliability. To enhance its corporate network and increase its technical expertise, Amazon acquires and builds partnerships with several technology giants. It has set several strategic priorities to drive growth and improve revenue in the upcoming years. The company applies product development as a supporting strategy for its business growth.
Microsoft’s business strategy is focused on technological innovations, which helps it maintain its position in a competitive environment. The company is focusing on developing its intelligent cloud portfolio by investing heavily in its Windows Server and virtualization platform. The company prioritizes investments to capture the expanding market opportunities through product innovations complemented by acquisitions and partnerships. It strategizes to broaden its product offerings and reach new audiences in the global market.
Salesforce pursues the strategy of expansion and product diversification. It focuses on joint investments and R&D projects as a key strategy to meet its digital vision. The company concentrates on streamlining inventories and strengthens operational capabilities. It aims to provide differentiated products and services to customers by integrating the latest technologies into existing products.
| Attribute/Metric | Details |
| Market Size 2023 | USD 607.57 Billion |
| Market Size 2024 | USD 685.3823 Billion |
| Market Size 2032 | USD 1797.32 Billion |
| Compound Annual Growth Rate (CAGR) | 12.81% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2022 |
| Market Forecast Value | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Service Model, Organization Size, Industry, and Region |
| Geographies Covered | Europe, North America, Asia-Pacific, Middle East & Africa, and South America |
| Countries Covered | The U.S, Germany, Canada, U.K., France, Japan, China, India, South Korea, and others. |
| Key Companies Profiled | ALIBABA GROUP HOLDING LIMITED, Amazon.com Inc., Adobe Inc., Google LLC, IBM Corporation, Microsoft Corporation, Oracle Corporation, Salesforce.com Inc., Sap Se, Fujitsu ltd., CISCO systems Inc., VMware, Inc., Hewlett-Packard Enterprise, TENCENT, OVH CLOUD,LUMEN TECHNOLOGIES, INC. and RackSpace |
| Key Market Opportunities | Increasing Adoption of Internet-Of-Things |
| Key Market Dynamics | Increasing Penetration of Cloud Services Among SMEs·      Increasing Demand for AI, Machine Learning, and the Internet of Things |
Public Cloud Market Highlights:
Frequently Asked Questions (FAQ) :
The Public Cloud Market size is expected to be valued at USD 607.57 Billion in 2023.
The global market is projected to grow at a CAGR of 12.81% during the forecast period, 2024-2032.
North America had the largest share of the global market.
The key players in the market are Amazon.com, Inc., Alibaba Group Holding Limited, Adobe Inc., Oracle Corporation, and others.
SAAS with 54.9% dominated the market in 2022.
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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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