1 Global Public Cloud Service Market Size (Value) and CAGR (2024-2033)
In 2024, the global Public Cloud Service market was valued at USD 738,491 million, with a CAGR of 23.2% from 2024 to 2033.
The public cloud is defined as computing services offered by third-party providers over the public Internet, making them available to anyone who wants to use or purchase them. They may be free or sold on-demand, allowing customers to pay only per usage for the CPU cycles, storage, or bandwidth they consume.
Figure Global Public Cloud Service Market Size (M USD) and CAGR 2024-2033
2 Public Cloud Service Market Drivers
Scalability and Flexibility: Public cloud services offer businesses the ability to scale their IT resources up or down based on demand. This flexibility is particularly beneficial for small and medium-sized enterprises (SMEs) that may not have the resources to invest in large-scale, on-premises IT infrastructure. The ability to pay only for what is used (pay-per-use model) makes public cloud services an attractive option for organizations looking to optimize their IT spending.
Cost Reduction: Public cloud services eliminate the need for significant upfront investments in hardware and infrastructure. Instead, businesses can leverage the cloud provider’s infrastructure, reducing capital expenditures and operational costs. This cost-effectiveness is a major driver for the adoption of public cloud services, especially in industries with fluctuating workloads or seasonal demands.
Digital Transformation: The shift towards digital transformation has accelerated the adoption of public cloud services. Organizations are leveraging cloud technologies to enhance their digital capabilities, improve customer experiences, and gain a competitive edge. Public cloud services provide the necessary infrastructure and tools to support the development and deployment of innovative digital solutions.
3 Public Cloud Service Market Restraints
Security and Privacy Concerns: One of the primary concerns for businesses considering public cloud services is the security and privacy of their data. Storing sensitive information in the cloud raises questions about data protection, compliance with regulations, and the risk of cyberattacks. While cloud providers have implemented robust security measures, many organizations remain cautious about entrusting their critical data to third-party services.
Vendor Lock-in: Another potential restraint is the risk of vendor lock-in. Once a business adopts a specific cloud provider’s services, it can be challenging and costly to migrate to another provider or return to an on-premises solution. This dependency on a single provider can limit flexibility and negotiating power.
Complexity of Migration: Migrating existing IT infrastructure and applications to the cloud can be a complex and time-consuming process. Organizations may face technical challenges, compatibility issues, and the need for extensive retraining of staff. The cost and effort associated with migration can deter some businesses from adopting public cloud services.
4 Global Public Cloud Service Market Size and Share by Type in 2024
IaaS is a type of cloud computing that provides virtualized computing resources over the internet. It allows users to rent virtual machines, storage, and other resources on a pay-per-use basis. In 2024, the IaaS market is projected to be worth $183,440 million USD. This segment is expected to grow at a Compound Annual Growth Rate (CAGR) of 27.62% from 2024 to 2029. IaaS is particularly popular among businesses that need scalable and flexible computing resources without the upfront cost of purchasing and maintaining physical hardware. Major players in this segment include Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform.
SISaaS refers to cloud-based solutions that provide system infrastructure software, such as operating systems, middleware, and other foundational software components. In 2024, the SISaaS market is expected to reach $107,116 million USD. This segment is projected to grow at a CAGR of 20.11% over the next five years.
PaaS provides a platform for developers to build, deploy, and manage applications without the need to manage the underlying infrastructure. In 2024, the PaaS market is forecasted to be worth $125,281 million USD. This segment is expected to grow at a CAGR of 26.66% from 2024 to 2029. PaaS is particularly beneficial for software developers and enterprises looking to streamline their application development and deployment processes.
SaaS delivers software applications over the internet, eliminating the need for users to install and maintain software on their own computers. In 2024, the SaaS market is projected to be the largest segment, with a value of $322,654 million USD. This segment is expected to grow at a CAGR of 20.61% from 2024 to 2029. SaaS solutions are widely used across various industries for applications such as customer relationship management (CRM), enterprise resource planning (ERP), and collaboration tools.
Table Global Public Cloud Service Market Size and Share by Type in 2024
Type | Market Size (M USD) 2024 | Market Share 2024 |
Infrastructure as a Service (IaaS) | 183440 | 24.84% |
System Infrastructure Software as a Service (SISaaS) | 107116 | 14.50% |
Platform as a Service (PaaS) | 125281 | 16.96% |
Software as a Service (SaaS) | 322654 | 43.69% |
5 Global Public Cloud Service Market Size and Share by Application in 2024
The BFSI sector is one of the largest adopters of public cloud services due to the need for scalable and secure IT solutions. In 2024, the BFSI application segment is projected to be worth $132,607 million USD. This segment is expected to grow at a Compound Annual Growth Rate (CAGR) of 24.47% from 2024 to 2029. BFSI organizations are leveraging cloud services to enhance their digital capabilities, improve customer experiences, and comply with regulatory requirements.
The government sector is increasingly adopting public cloud services to improve efficiency, reduce costs, and enhance citizen services. In 2024, the government application segment is expected to reach $20,653 million USD. This segment is projected to grow at a CAGR of 23.28% over the next five years. Governments around the world are leveraging cloud technologies to modernize their IT infrastructure and deliver better public services.
The telecommunication industry is a significant user of public cloud services, driven by the need for scalable and flexible IT solutions to support growing data demands. In 2024, the telecommunication application segment is projected to be worth $168,153 million USD. This segment is expected to grow at a CAGR of 21.57% from 2024 to 2029. Telecommunication companies are leveraging cloud services to enhance their network capabilities, improve customer experiences, and support the deployment of new technologies such as 5G.
The transportation sector is adopting public cloud services to optimize logistics, improve fleet management, and enhance overall operational efficiency. In 2024, the transportation application segment is projected to be worth $69,864 million USD. This segment is expected to grow at a CAGR of 21.49% over the next five years. Transportation companies are leveraging cloud services to manage their supply chains more effectively and reduce operational costs.
Table Global Public Cloud Service Market Size and Share by Application in 2024
Application | Market Size (M USD) 2024 |
BFSI | 132607 |
Government | 20653 |
Telecommunication | 168153 |
Transportation | 69864 |
Healthcare, energy & utilities | 81476 |
Media & entertainment | 40845 |
Manufacturing | 30226 |
Retail/ wholesale | 76820 |
Others | 117847 |
6 Global Public Cloud Service Market Size by Region in 2024
North America continues to dominate the global public cloud service market, driven by the presence of major cloud service providers and high adoption rates among enterprises. In 2024, the North America region is projected to be worth $450,234 million USD. This region is expected to grow at a Compound Annual Growth Rate (CAGR) of 23.23% from 2024 to 2029.
The European market for public cloud services is also significant, driven by the need for digital transformation and regulatory compliance. In 2024, the Europe region is projected to be worth $121,527 million USD. This region is expected to grow at a CAGR of 23.23% over the next five years.
The Asia-Pacific region is the fastest-growing market for public cloud services, driven by rapid digital transformation and increasing adoption among emerging economies. In 2024, the Asia-Pacific region is projected to be worth $144,929 million USD.
Figure Global Public Cloud Service Market Size by Region in 2024
7 Major Players in Global Public Cloud Service Market
7.1 Microsoft Corp.
Company Profile
Microsoft Corporation, established in 1975, is a global technology giant headquartered in Redmond, Washington. Microsoft offers a comprehensive suite of software products and services, including operating systems, server applications, business and consumer software, and cloud services. The company’s cloud offerings are primarily delivered through Microsoft Azure, which provides Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS) solutions. Microsoft’s cloud services are widely used by enterprises for their scalability, reliability, and integration capabilities with existing Microsoft products.
Business Overview
Microsoft’s business model is centered around developing, manufacturing, licensing, selling, and supporting software products. The company’s cloud services, particularly Azure, have become a cornerstone of its business strategy, enabling organizations to leverage scalable computing resources, storage, and analytics capabilities. Microsoft’s cloud solutions are designed to support a wide range of industries, from small businesses to large enterprises, and are known for their robust security features and compliance with various regulatory standards.
Products Analysis
Microsoft Azure offers a diverse range of cloud services, including virtual machines, storage solutions, databases, and analytics tools. Azure’s IaaS solutions allow customers to deploy and manage virtual machines and storage resources, providing a flexible and scalable environment for various workloads. PaaS offerings enable developers to build, deploy, and manage applications without worrying about the underlying infrastructure. SaaS solutions, such as Microsoft Office 365, provide users with access to productivity tools and applications over the internet.
Recent Financial Performance
In the most recent fiscal year, Microsoft Corp. reported a cloud service value of $51,135 million USD.
7.2 Amazon Web Services Inc
Company Profile
Amazon Web Services (AWS), established in 2006, is a subsidiary of Amazon.com and is headquartered in Seattle, Washington. AWS is a leading provider of cloud computing services, offering a wide range of solutions including IaaS, PaaS, and SaaS. AWS has played a pivotal role in the development and popularization of cloud services, providing businesses with scalable and flexible computing resources. The company’s extensive portfolio of services includes website hosting, analytics, machine learning, and more.
Business Overview
AWS’s business model focuses on providing reliable, scalable, and cost-effective cloud computing services to a diverse range of customers, from startups to large enterprises. The company’s services are designed to support various applications and workloads, enabling organizations to optimize their IT infrastructure and reduce operational costs. AWS’s robust security measures and compliance with industry standards make it a trusted choice for businesses looking to leverage cloud technologies.
Products Analysis
AWS offers a comprehensive suite of cloud services, including Amazon EC2 for virtual servers, Amazon S3 for storage, and Amazon RDS for database management. The company’s PaaS solutions enable developers to build, deploy, and manage applications quickly and efficiently. AWS also provides SaaS solutions such as Amazon WorkMail and Amazon Chime, which offer productivity tools and collaboration services. AWS’s extensive portfolio of services, combined with its continuous innovation, makes it a dominant player in the cloud market.
Recent Financial Performance
In the most recent fiscal year, Amazon Web Services Inc reported a cloud service value of $50,763 million USD.
7.3 Salesforce
Company Profile
Salesforce, established in 1999, is a global leader in customer relationship management (CRM) software. Headquartered in San Francisco, California, Salesforce provides a comprehensive suite of CRM solutions, including sales, service, marketing, and commerce applications. The company’s cloud-based platform enables businesses to manage their customer interactions and data more effectively, enhancing customer engagement and driving business growth.
Business Overview
Salesforce’s business model is centered around delivering CRM solutions that help businesses manage their customer relationships more effectively. The company’s cloud-based platform, Salesforce.com, offers a range of applications and tools designed to support various aspects of customer engagement, from sales and marketing to customer service and support. Salesforce’s solutions are known for their flexibility, scalability, and integration capabilities, making them a preferred choice for businesses of all sizes.
Products Analysis
Salesforce offers a comprehensive suite of CRM applications, including Sales Cloud for sales management, Service Cloud for customer service, Marketing Cloud for marketing automation, and Commerce Cloud for e-commerce solutions. The company’s platform also includes Salesforce Platform, which enables developers to build custom applications and extend the functionality of Salesforce solutions. Salesforce’s integrated suite of applications provides businesses with a holistic view of their customer interactions, enhancing their ability to deliver personalized experiences.
Recent Financial Performance
In the most recent fiscal year, Salesforce reported a cloud service value of $21,579 million USD.