Public Cloud Market

Public Cloud Market Overview

The public cloud market size is projected to grow from USD 0.567 trillion in 2024 to USD 3.36 trillion by 2035, representing a CAGR of 17.58%, during the forecast period till 2035.

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The new research study consists of public cloud market and trends analysis, detailed market forecast analysis, and provide actionable strategic recommendations.

Public cloud refers to cloud computing architecture in which computing services and infrastructure such as servers, networking, storage, and applications are offered to different users over the internet by cloud service providers. The term public in this, describes that the resources can be used by the general public or users on a pay-per-use basis. The key attributes of the service include shared infrastructure, internet-based accessibility, self-service provisioning, and multi-tenant architecture which are the key aspects of the technology. In addition to this, several benefits of public cloud computing like cost-efficiency with no large capital investment, scalability in resources based on demand, and accessibility from anywhere are attracting businesses to leverage public cloud technology.

For this reason, the global public computing market is predicted to flourish outstandingly in the upcoming years where numerous factors driving the market growth. Also, the emerging trend like machine learning applications in the cloud has boosted the market scope. This is due to the fact that more and more service providers are providing AI and machine learning services as part of their portfolios. This benefits organizations from deploying powerful AI models without needing deep in-house expertise. Consequently, recognizing its untapped potential, stakeholders are increasingly investing in industry development. For instance, in October 2024, Oracle announced that it is going to invest more than $6.2 billion in AI and cloud computing in Malaysia. Through this, the company aims to open a cloud region including 150+ IaaS and SaaS services to elevate the country’s digital economy. By sharing the news, YB Senator Zafrul Tengku Abdul Aziz, the minister of investment said that this investment will empower Malaysian entities, particularly, SMEs with advanced state-of-the-art technology. This will also support the country’s New Industrial Master Plan of creating 300 smart factories by 2030. Overall, these factors are likely to expand the market outlook during the forecast 2024-2030.

Public Cloud Market Share Insights

The Public Cloud Market report presents an in-depth analysis of the various companies that are involved in offering power supply, across different segments, as defined in the table below:

Public Cloud Market: Report Attributes / Market Segmentations

Public Cloud Market Segmentation

Market Share by Type of Service Model

Based on the type of service model, the market is categorized into Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). As per this public cloud market forecast report, software as a service is anticipated to dominate the market with the largest 48.13% of the market share by 2035. This can be attributed to the cost-effectiveness, ease of use and accessibility, rapid deployment, and integration capabilities. SaaS is a crucial element in the cloud ecosystem which provides user-friendly applications, no maintenance cost, and interoperability with other services, thereby, propelling market growth. On the other hand, infrastructure as a service (IaaS) segment is expected to register 18.56% growth during this forecast period majorly due to on-demand resources as IaaS offers businesses on-demand access to computing resources like virtual machines and storage.

Market Share by Type of Enterprise

On the basis of the type of enterprises, the market is divided into large enterprises and small and medium-sized enterprises. As per the public cloud market report, large enterprises are expected to hold the highest 63.18% of the market by 2030. Large enterprises generally have multi-regional operations that require large-scale technology deployments for remote monitoring and easy accessibility. Also, complexity in global operations and agility in business processes fuel the market demand due to its flexibility in handling complex data. Meanwhile, small and medium-sized enterprises are likely to expand at a higher CAGR of 18.96% during this forecast period owing to the scalability of cloud services, access to advanced tools, and better operational efficiency that attract SMEs to attract advanced technologies similar to public cloud services.

Market Share by Type of Vertical

On the basis of the type of vertical, the market is segmented into BFSI, government, healthcare, IT & telecom, manufacturing, media & entertainment, retail and consumer goods, and others. According to our public cloud market analysis, BHSI is anticipated to foster the market with the largest 41.95% of the market share till 2035. The industry is increasingly adopting advanced solutions that aid banks in handling large volumes of customer data while complying with regulatory requirements. In addition, the rise of fintech companies around the world, and the demand for secure data storage solutions, processing, and real-time analytics in the cloud are the key aspects, accelerating the market progress. Whereas IT & telecom sector is projected to grow at a noteworthy CAGR of 19.18% in the near future due to cloud-native business as several tech companies from startups and SaaS providers depend on cloud infrastructure.

Market Share by Geographical Regions

This segment highlights the distribution of the Public Cloud Market across various geographical regions, such as North America, Europe, Asia, Latin America, the Middle East and North Africa, and the rest of the world. In terms of higher public cloud adoption rates, North America is estimated to dominate and will likely capture nearly 49.62% of the market share by 2035. Additionally, Asia is the fastest-growing region in the global market for public cloud and is poised to witness an outstanding CAGR of 19.27% during this forecast period. The factors behind this growth can be ascribed to digital transformation in enterprises, high cloud adoption, increasing government support, and a boom in e-commerce and digital services in the region.

Public Cloud Market Key Insights

The “Public Cloud Market, Till-2035: Industry Trends and Global Forecasts“ report features an extensive study of the current market landscape, market size and future opportunities within the public cloud Market, during the given forecast period. The market report highlights the efforts of several stakeholders involved in this rapidly emerging segment of the service providers industry. Key takeaways of the public cloud market report are briefly discussed below.

Key Drivers of the Public Cloud Market

The primary key driver of the public service market growth is the soaring adoption of digital technology. Numerous enterprises are adopting cloud-first strategies to modernize their IT infrastructures and transform digitally. This is due to the fact that cloud computing allows businesses to innovate faster, build more agile applications, and respond quickly. Also, the cost-effectiveness of public clouds eliminates the need for companies to invest in expensive hardware, data centers, and IT infrastructure, elevating the market demand. Besides, the rise of remote work and global collaboration has significantly spiked the adoption of cloud-based remote work solutions. Consequently, these factors along with innovation and speedy development in edge computing are also expected to generate new opportunities for the ample growth of the market during this projection timeframe.

Public Cloud Market Competitive Landscape

Currently, several key players from giant multinational companies to regional niche tech players are shaping the competitive landscape of the market. Notable companies including AWS, Google, IBM, Oracle, and others are boosting the market competition by offering a range of cloud services, IaaS (Infrastructure as a Service), and PaaS (Platform as a Service). Additionally, these market players are driving innovation by introducing AI in public cloud services and hybrid cloud solutions that help them enhance their competitive edge. Apart from this, these brands offer different public cloud pricing models that provide flexibility. Moreover, collaborations, partnerships, and acquisitions are the key strategies that these prominent players are adopting in order to retain their dominance in the global marketplace.

Market Challenges in Public Cloud Market

Despite the continuous growth of the market, data security and privacy concerns are notable challenges in public cloud adoption that may hamper the market progress. Public cloud environments host sensitive data which makes them prime targets for cyberattacks like data breaches, ransomware, and distributed denial of service attacks. Therefore, securing data in transit and at rest is expected to remain a leading concern for organizations which can also impact market expansion during this forecast period.

Regional Analysis: North America is Expected to Dominate the Market with the Largest Public Cloud Market Share

With respect to regional public cloud industry insights, North America has been a dominating region in advanced technology through its early adoption and continuous innovation in the development of technology. Due to this, the region is expected to lead the global market for public cloud. The presence of prominent cloud service providers (CSPs) such as AWS, Microsoft, and Google based in the US, are the early movers that offer cloud infrastructure and remarkably contribute to the region’s dominance. Further, the advanced IT infrastructure particularly, in the US reinforces market development through their data center ecosystems, high-speed internet, and network connectivity. These IT infrastructures are the backbone of the cloud services that enable cloud providers to offer low latency and high performance. Besides, a cloud-friendly regulatory environment, robust venture capital ecosystem, along strong investment in cloud infrastructure are some of the other key factors that substantially drive the market growth and are likely to maintain the region’s leading position in the forthcoming decade.

Leading Public Cloud Companies

Examples of key public cloud companies involved in the public cloud market (which have also been captured in this market report, arranged in alphabetical order) include Adobe (US), Alibaba (China), AWS (US), Cisco (US), Dell (US), Fujitsu (Japan), Google (US), HPE (US), Huawei (China), IBM (US), Microsoft (US), NEC (Japan), Oracle (US), OVH (France), Rackspace (US), Salesforce (US), SAP (Germany), ServiceNow (US), Tencent (China), Verizon (US), VMware (US), and Workday (US), and TotalEnergies (France). This market report includes an easily searchable excel database of all the companies who have adopted the public cloud market.

Recent Developments In Public Cloud Market

• In July 2024, Salesforce introduced new service cloud tools and a new app for Service Cloud customers that allows agents to solve customer cases faster than before and aids companies in easily scaling support.
• In June 2024, Salesforce unveiled it Public Sector Division in India to drive transformation. Through the launch of its public sector solutions, the company aims to help government agencies serve people faster with out-of-the-box apps designed for digital service delivery.
• In May 2024, Microsoft declared to build the latest cloud and AI infrastructure in Thailand. Through this company aims to offer AI skilling opportunities and support the nation’s growing developer community.

Public Cloud Market Report Coverage

The market report presents an in-depth analysis, highlighting the capabilities of various companies engaged in this domain, across different segments. Amongst other elements, the market report includes:

• A preface providing an introduction to the full report public cloud market, 2019-2023 (Historical Trends) and till-2035 (Forecasted Estimates).
• An outline of the systematic research methodology adopted to conduct the study on the public cloud market , providing insights on the various assumptions, methodologies, and quality control measures employed to ensure the accuracy and reliability of our findings.
• An overview of economic factors that impact the overall public cloud market including historical trends, currency fluctuation, foreign exchange impact, recession, and inflation measurement.
• An executive summary of the insights captured during our research. It offers a high-level view on the current state of the public cloud market and their likely evolution in the mid-long term.
• A detailed assessment of the public cloud market landscape, based on several relevant parameters, including year of experience, company size, location of headquarters, and ownership structure.
• Elaborate profiles of prominent players engaged in the public cloud market, featuring information on their year of establishment, location of headquarters, company size, company mission, company footprint, management team, contact details, financial information, operating business segments, public cloud market portfolio, moat analysis, recent developments, and an informed future outlook.
• A qualitative assessment of the various megatrends ongoing in the public cloud industry, including the rising integration of AI and ML in the cloud and increased adoption of serverless architectures.
• An analysis highlighting the key unmet needs across the public cloud market , featuring insights generated from real-time data on unmet needs as identified from social media posts, recent publications, industry blogs and the views of key opinion leaders expressed on online platforms.
• An in-depth analysis of various patents that have been filed / granted related to the public cloud market and its components, based on various parameters, such as type of patent, patent publication year, patent age and leading players.
• A detailed analysis of recent developments in the public cloud market domain, based on relevant parameters such as year of initiative, type of initiative (partnerships and collaborations, expansions, funding and product launches), geographical distribution and most active players (in terms of number of recent developments).
• Key winning strategies framework that helps in analyzing the level of competition within an industry, by tracing the key market activities including partnership, funding, expansion of leading players
• A qualitative analysis, highlighting the five competitive forces prevalent in public cloud market, including threats for new entrants, bargaining power of suppliers, bargaining power of customers, threats of substitution and rivalry among existing competitors.
• A discussion on affiliated global Public Cloud Market trends, key drivers and challenges, under a SWOT framework, which are likely to impact the industry’s evolution, along with a Harvey ball analysis, highlighting the relative effect of each SWOT parameter on the overall public cloud market.
• A value chain analysis featuring a discussion on various stakeholders involved in the development of the public cloud market, from suppliers to end-users.
• A detailed estimate of the current market size and the future growth potential of the public cloud market over the next decade. Based on multiple parameters we have provided an informed estimate on the market evolution during the forecast period 2024-2035. The report also features the likely distribution of the current and forecasted opportunity within the public cloud market. Further, in order to account for future uncertainties and to add robustness to our model, we have provided three forecast scenarios, namely conservative, base, and optimistic scenarios, representing different tracks of the industry’s growth.
• Detailed projections of the current and future market across various types of service model such as infrastructure as a service, platform as a service, and software as a service.
• Detailed projections of the current and future market across various types of enterprises such as large enterprises and small and medium enterprises.
• Detailed projections of the current and future market across various types of verticals such as BFSI, government, healthcare, it & telecom, manufacturing, media & entertainment, retail and consumer goods, and others.
• Detailed projections of the current and future public cloud market across various geographical regions, such as North America (US, Canada, Mexico and other North American countries), Europe (Austria, Belgium, Denmark, France, Germany, Ireland, Italy, Netherlands, Norway, Russia, Spain, Sweden, Switzerland, UK and other European countries), Asia (China, India, Japan, Singapore, South Korea and other Asian countries), Middle East and North Africa (Egypt, Iran, Iraq, Israel, Kuwait, Saudi Arabia, UAE and other MENA countries), Latin America (Brazil, Chile, Colombia, Venezuela and other Latin American countries) and rest of the world (Australia, New Zealand and other countries).

Author: Ronit Sharma and Neha Kashyap

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