In the fourth quarter of 2024, the most popular vendor in the cloud infrastructure services market, Amazon Web Services (AWS), controlled ** percent of the entire market. Microsoft Azure takes second place with ** percent market share, followed by Google Cloud with ** percent market share. Together, these three cloud vendors account for ** percent of total spend in the fourth quarter of 2024. Organizations use cloud services from these vendors for machine learning, data analytics, cloud native development, application migration, and other services. AWS Services Amazon Web Services is used by many organizations because it offers a wide variety of services and products to its customers that improve business agility while being secure and reliable. One of AWS’s most used services is Amazon EC2, which lets customers create virtual machines for their strategic projects while spending less time on maintaining servers. Another important service is Amazon Simple Storage Service (S3), which offers a secure file storage service. In addition, Amazon also offers security, website infrastructure management, and identity and access management solutions. Cloud infrastructure services Vendors offering cloud services to a global customer base do so through different types of cloud computing, which include infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS). Further, there are different cloud computing deployment models available for customers, namely private cloud and public cloud, as well as community cloud and hybrid cloud. A cloud deployment model is defined based on the location where the deployment resides, and who has access to and control over the infrastructure.

Public Cloud Market size was valued at USD 444.7 billion in 2019 and is poised to grow from USD 521.63 billion in 2023 to USD 2193.04 billion by 2031, growing at a CAGR of 17.3% in the forecast period (2024-2031).

The Public Cloud Market report segments the industry into By Deployment (Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS)), By Organization Size (SME's Organization, Large Organizations), By End User Industry (BFSI, Healthcare, Government, Manufacturing, IT and Telecom, Others End Users), and By Geography (North America, Europe, Asia, Australia and New Zealand, and more).

With approximately 24 percent market share, Amazon Web Services was the leading provider in the global public cloud Infrastructure as a Service (IaaS), System Infrastructure as a Service (SISaaS), and Platform as a Service (PaaS) market in 2020. Microsoft was the second-largest company in the market with a share almost 17 percent.

Globally, the public cloud market is currently valued at 685.3823 billion USD and is projected to reach a staggering 2,225.9945 billion USD by 2033, reflecting a robust CAGR of 12.81% from 2025 to 2033. Faster digital transformation, rising cloud-native application development, increased affordability, and rapid penetration of mobile devices and IoT are some key growth drivers shaping the public cloud market. Furthermore, the adoption of innovative technologies like AI, ML, and analytics further fuels demand for cloud computing resources. Regionally, North America holds the largest market share, followed by Europe and Asia Pacific. Leading cloud providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) dominate the market, offering comprehensive cloud services across IaaS, PaaS, and SaaS models. Key trends shaping the market include the increasing adoption of multi-cloud and hybrid cloud solutions, the rise of edge computing, and the growing significance of data security and compliance. Despite these growth drivers, factors such as data privacy and security concerns, legacy systems, and potential vendor lock-in can restrain market growth to some extent. Recent developments include: In March 2023, Alibaba Cloud, the foundation of Alibaba Group's digital technology and intelligence, announced its partnership with long-time partner Dubai Holding to upgrade the facility with cutting-edge cloud infrastructure and a wider range of products and services in analytics, databases, industry solutions, and AI services to provide customers with the best digital solutions during their journey towards digitalization. In February 2023, Alibaba Cloud, the digital technology and intelligence core of Alibaba Group has been selected by e-commerce platform MyEUShop and its joint venture logistics partner, Nederlands Express (NLE), as their preferred cloud service provider and technology partner. MyEUShop and NLE will receive assistance from Alibaba Cloud to optimize their retail solutions and e-commerce platform infrastructure to achieve future commercial growth. In March 2023, AWS, a division of Amazon.com, Inc., has announced plans to open a region for its infrastructure in Malaysia. The new Amazon Region will allow developers, start-ups, entrepreneurs, businesses, government, educational, and charity institutions more options for using Malaysian data centers to operate their applications and serve end users. In October 2022, UBS and Microsoft announced a significant expansion of their collaboration to expand UBS's public cloud footprint over the next five years. As part of this transformational endeavour, UBS intends to operate more than half of its applications, including key workloads, on Microsoft Azure, the firm's primary cloud platform. The collaboration advances UBS's "cloud-first" strategy and modernization of its global technology estate. In July 2022, in India, Adobe Experience Manager (AEM) as a Cloud Service, powered by Adobe Experience Cloud, is now generally available, according to Adobe. With SaaS-like agility and experience management capabilities, AEM, a cloud-native solution, helps businesses manage and scale customized digital content for every channel. This enables marketers and developers to quickly create powerful, personalized digital experiences in just a few weeks, unlike the industry norm of months. . Notable trends are: Increasing demand for immersive virtual reality experiences is driving the market growth..

In 2021, Microsoft was the largest software as a service (SaaS) vendor worldwide, with a market share of ** percent. Other key players in the market include Salesforce, SAP, and Google. SaaS is a cloud delivery model in which software is centrally hosted and delivered on a subscription basis. SaaS benefits Among the benefits of SaaS are accessibility, reliability, as well as cost-effectiveness. Further, the SaaS model enables organizations to run applications without spending too much time on maintenance processes. This functionality comes at a time when there is a great demand for solutions that accelerate the development of modern applications. The widespread usage of the technology led to more user-friendly and affordable SaaS solutions which help organizations realize their business goals. SaaS market As a result of the growth in demand for SaaS, the segment takes up the largest share of the public cloud market, with revenues of around *** billion U.S. dollars in 2020. In fact, many organizations are focusing on making SaaS a part of their operational expenditures to avoid the capital expenses of legacy systems. Notably, the market is becoming increasingly competitive, with many companies focusing on very specific products, such as SaaS customer relationship management (CRM) solutions.

The worldwide public cloud computing market continues to grow and is expected to reach an estimated ****** billion U.S. dollars in 2025. This encompasses business processes, platform, infrastructure, software, management, security, and advertising services delivered by public cloud services. A public cloud is a cloud deployment model that offers computing services over the internet. The physical hardware of this cloud model is shared by multiple companies. The services offered to customers include storage, bandwidth, or CPU cycles. Public clouds are cost-effective Among the many benefits of a public cloud is that services are offered to the customer through a pay-as-you-go model. This means that no upfront investments must be made, which otherwise lead to running costs for maintaining on-premise hardware and application infrastructure. Instead, the cloud service provider ensures proper management and maintenance of the system and the customer only pays for services consumed. AWS, Azure, and Google are dominating the market Key companies offering public cloud platforms to customers are Amazon Web Services, Microsoft Azure, and Google Cloud. Their preeminence on the market is demonstrated by organizations’ plans to continually migrate their data to the cloud and use cloud applications for their business operations on a global scale.

The size of the Public Cloud Market was valued at USD XXX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 16.30% during the forecast period.The public cloud market pertains to the delivery of services through cloud computing using the internet. Third-party CSPs own and manage the infrastructures, for example, servers, storage, networking, and software, to provide these services. Public cloud services entail several benefits, including scaling, cost-effectiveness, flexibility, and high availability.Public cloud services give businesses and individuals the freedom to store and process data, execute applications, and host websites with less upfront investment in hardware and software.This allows organizations, regardless of size, to tap into the computing potential of resources at their disposal, only paying for what they use. Public cloud services are highly used in data storage, software development, big data analytics, artificial intelligence, machine learning, and Internet of Things (IoT) applications. With its advancement, the public cloud market will continue to grow and innovate with time. Recent developments include: May 2023: Informatica, an enterprise cloud data management player, further strengthened ties with Google Cloud and put more management in the hands of consumers with two new developments: the launch of Informatica's Intelligent Master Data Management Software-as-a-Service natively on Google Cloud and Informatica's comprehensive Intelligent Data Management Cloud (IDMC). Informatica's AI-powered, multidomain Intelligent MDM SaaS on Google Cloud provides consumers with a trusted, holistic view of their entire data domain across all enterprise domains, from consumers, suppliers, and products to workers, locations, and industry-specific assets., April 2023: Palantir Technologies Inc. reported that Palantir Federal Cloud Service (PFCS) achieved FedRAMP authorization and accreditation to support workloads at U.S. Department of Defense (DoD) Impact Level (IL) 4 and DOD IL5 on Microsoft Azure. This milestone enables U.S. government customers and industry partners to access Palantir and Microsoft's secure, integrated, enterprise-grade capabilities in Microsoft Azure Government and Azure Commercial environments. This milestone extends Palantir and Microsoft's strategic collaboration from the private sector to the public sector, obtaining the best-in-class cloud components for the federal marketplace.. Key drivers for this market are: Rise in development of new technologies such as 5G, Artifical Intelligence, Machine Learning and Internet of Things, Economic benefits leading to cloud adoption. Potential restraints include: High Cost of Marketing Technology. Notable trends are: Software-as-a-Service (SaaS) is Expected to Hold Significant share.

The public cloud market size was over USD 487 billion in 2024 and is estimated to reach USD 1579.1 billion by the end of 2037, expanding at a CAGR of 10.3% during the forecast timeline, i.e., 2025-2037. North America industry is predicted to account for the largest share of 50% by 2037, owing to well-developed infrastructure and high adoption of technology in the region.

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Public Cloud Services Market Size 2025-2029

The public cloud services market size is forecast to increase by USD 1707.7 billion, at a CAGR of 23.1% between 2024 and 2029.

The market is witnessing significant growth, driven by the increasing number of data center hyperscale and colocation providers. These infrastructure providers are expanding their offerings to cater to the surging demand for cloud services, creating a competitive landscape. Strategic partnerships and collaborations among market participants are also shaping the market, as companies seek to expand their reach and enhance their offerings. However, challenges persist, with company lock-in and operational complexities posing significant obstacles. Companies must carefully evaluate their cloud strategies to mitigate these challenges and capitalize on the market's potential. For instance, Infrastructure-as-a-Service (IaaS) providers like Amazon Web Services and Microsoft Azure are investing in advanced technologies, such as artificial intelligence and machine learning, to differentiate their offerings.
Software-as-a-Service (SaaS) players like Salesforce and Workday are focusing on industry-specific solutions to cater to diverse business needs. Platform-as-a-Service (PaaS) providers like Google Cloud Platform and IBM Cloud are emphasizing security and compliance to attract enterprise customers. To succeed in this dynamic market, companies must navigate these challenges and leverage the latest trends to deliver value to their customers.

What will be the Size of the Public Cloud Services Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market continues to evolve, with new applications and technologies shaping the dynamic landscape. IaaS (Infrastructure-as-a-Service) and PaaS (Platform-as-a-Service) applications are driving cost optimization and agility in businesses, while API management ensures seamless integration and access to cloud services. Cloud risk management, a critical component, encompasses cloud security, data governance, and compliance. Block storage and file storage provide reliable data management, with data privacy and encryption ensuring security. Disaster recovery and business continuity plans are essential for ensuring uninterrupted operations. Cloud provider offerings continue to expand, with serverless functions, container orchestration, and content delivery networks becoming increasingly popular.

Big data analytics, machine learning, and artificial intelligence are transforming industries, with cloud-based applications enabling real-time insights and predictive analytics. Hybrid cloud solutions offer the benefits of both public and private clouds, while continuous delivery and integration streamline development processes. Cloud monitoring and optimization tools help businesses maximize performance and efficiency, while cloud management frameworks ensure compliance with industry standards. Access control and cloud penetration testing are crucial for maintaining security, with cloud forensics and incident response plans providing valuable insights in the event of a breach. Edge computing and load balancing distribute processing power and reduce latency, enhancing user experience.

Ongoing cloud adoption and migration require a robust understanding of service level objectives, performance metrics, and cloud-native architectures such as microservices and serverless computing. The continuous unfolding of market activities and evolving patterns underscores the importance of staying informed and adaptable in the ever-changing cloud landscape.

How is this Public Cloud Services Industry segmented?

The public cloud services industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Service

  SaaS
  IaaS
  PaaS


Type

  SMEs
  Large enterprise


End User

  BFSI
  IT & telecom
  Retail & consumer goods
  Manufacturing
  Energy & utilities
  Healthcare
  Media & entertainment
  Government & public sector
  Others


Deployment Type

  Public Cloud
  Hybrid Cloud


Application

  Storage & Backup
  Application Development & Testing
  Analytics & Big Data
  Business Applications


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan


  South America

    Brazil


  Middle East and Africa

    UAE


  Rest of World (ROW)

By Service Insights

The SaaS segment is estimated to witness significant growth during the forecast period.

In the realm of cloud computing, Software as a Service (SaaS) is a prominent model that enables enterprises

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

The UK Cloud Computing Market Report is Segmented by Cloud Type (Public Cloud, Private Cloud, Hybrid Cloud), Organization Size (Small & Medium-Sized Enterprises, Large Enterprises), End-User Industry (Manufacturing, Education, Retail, BFSI and More), Service Model (Infrastructure-As-A-Service, Platform-As-A-Service, Software-As-A-Service, Business-Process-As-A-Service). The Market Forecasts are Provided in Terms of Value (USD).

According to Cognitive Market Research, the global Public Cloud market size will be USD 685.3823 billion in 2024 and will expand at a compound annual growth rate (CAGR) of 12.80% from 2024 to 2031. Market Dynamics of Public Cloud Market

Key Drivers for Public Cloud Market

Increased Digital Transformation Initiatives - One of the main reasons for the Public Cloud market growth is the surge in digital transformation initiatives across various industries. Businesses are increasingly adopting cloud technologies to enhance their operational efficiency, agility, and scalability. The need to stay competitive in a rapidly evolving digital landscape has pushed organizations to move their workloads and applications to the cloud, enabling them to take advantage of cutting-edge technology like machine learning, artificial intelligence, and big data analytics. This shift is further accelerated by the demand for remote work solutions, which have become essential in the wake of the COVID-19 pandemic.
The cost efficiency and scalability are anticipated to drive the Public Cloud market's expansion in the years ahead.

Key Restraints for Public Cloud Market

Regulatory compliance and data sovereignty issues to the Public Cloud industry growth.
Challenges in integrating with existing IT infrastructure and applications to data security and privacy impact market growth.

Introduction of the Public Cloud Market

Public Cloud, also referred to as cost-efficiency, plays a crucial role as organizations seek to optimize their IT expenditures by shifting from capital-intensive infrastructure to scalable, pay-as-you-go models offered by public cloud providers. Secondly, scalability and flexibility are significant drivers, enabling companies to scale operations and adjust to shifting demands seamlessly and quickly. Thirdly, advancements in technology, such as AI and machine learning, integrated within cloud services enhance productivity and innovation capabilities. Additionally, the global shift towards remote work and digital transformation initiatives further accelerates cloud adoption, ensuring anytime, anywhere access to data and applications securely. Lastly, regulatory requirements and data sovereignty issues push organizations towards cloud solutions that offer compliance and robust security measures, reinforcing trust and reliability in public cloud platforms.

The France Cloud Computing Market report segments the industry into By Type (Public Cloud, Private Cloud, Hybrid Cloud), Organization Size (SMEs, Large Enterprises), and End-User Industries (Manufacturing, Education, Retail, Transportation and Logistics, Healthcare, BFSI, IT and Telecom, Government and Public Sector, Others (Utilities, Media & Entertainment etc)). Get five years of historical market data and forecasts.

The Canada Cloud Computing Market Report is Segmented by Cloud Type (Public Cloud, Private Cloud, Hybrid Cloud), Service Model (IaaS, Paas, Saas, FaaS/Serverless), Organisation Size (SMEs, Large Enterprises), End-User Industry (BFSI, Healthcare & Life Sciences, Manufacturing, Retail & E-Commerce, and More). The Market Forecasts are Provided in Terms of Value (USD).

The Indonesia Cloud Market report segments the industry into By Type (Public Cloud, Private Cloud), By Organization Size (SMEs, Large Enterprises), By End-Use Industries (IT & Telecom, BFSI, Retail & Consumer Goods, Manufacturing, Healthcare & Lifesciences, Government, Other End User Verticals), and By Region (Java, Sumatra, Kalimantan, (Sulawesi, Papua & Muluku and Bali & Nusa Tenggara)).

The North America cloud computing market, valued at $248.07 million in 2025, is projected to experience robust growth, driven by a Compound Annual Growth Rate (CAGR) of 15.23% from 2025 to 2033. This expansion is fueled by several key factors. Increased digital transformation initiatives across various sectors, including manufacturing, healthcare, and BFSI (Banking, Financial Services, and Insurance), are creating a surge in demand for cloud-based solutions. The enhanced scalability, cost-effectiveness, and improved security offered by cloud services are compelling businesses of all sizes, from SMEs to large enterprises, to adopt cloud technologies. Furthermore, the growing adoption of hybrid cloud models, which combine the benefits of public and private clouds, is accelerating market growth. Government and public sector initiatives promoting digital infrastructure are also contributing significantly. The major players, including Amazon Web Services (AWS), Google Cloud, Microsoft Azure, and Salesforce, are further stimulating the market through continuous innovation and competitive pricing strategies. The market segmentation reveals significant opportunities across various sectors. The public cloud segment (IaaS, PaaS, SaaS) dominates, followed by hybrid and private cloud deployments. Large enterprises currently hold a larger market share compared to SMEs, but the latter segment is showing strong growth potential as cloud adoption becomes more accessible and affordable. Geographically, the United States represents the largest market share within North America, with Canada exhibiting steady growth. While specific regional data for the United States and Canada are unavailable, industry analysis suggests the US holds a significantly larger portion of the overall North American market given its larger economy and higher technology adoption rate. The continued expansion of 5G networks and the Internet of Things (IoT) will further fuel the demand for cloud computing services in the coming years, supporting continued expansion of the market throughout the forecast period. Recent developments include: June 2024: Apple unveiled its cloud intelligence system, Private Cloud Compute (PCC), tailored for cloud-based artificial intelligence (AI) tasks, prioritizing privacy preservation. PCC aims to transfer complex, power-intensive requests to the cloud while guaranteeing that data remains confidential and is never exposed to any third party, including Apple., May 2024: VPS AI unveiled its decentralized cloud computing solutions. The launch of VPS AI marks a significant shift in the cloud computing landscape. VPS AI provides a decentralized solution for establishing virtual private servers and containerized nodes, enabling individuals and enterprises to liberate themselves from the dominance of major tech corporations.. Key drivers for this market are: Robust Shift Towards Digital Transformation Across North America, Advancement of AI and Big Data Analytics. Potential restraints include: Robust Shift Towards Digital Transformation Across North America, Advancement of AI and Big Data Analytics. Notable trends are: Robust Shift Towards Digital Transformation Across North America.

The size of the Public Cloud Market was valued at USD 229.74 billion in 2023 and is projected to reach USD 596.39 billion by 2032, with an expected CAGR of 14.6 % during the forecast period. The public cloud market refers to the provision of computing services, which include storage, processing power, and software applications, by third-party providers over the internet. This service is offered to anyone in need and usually provided on a pay-as-you-go model, where one pays only for the amount consumed. The primary benefits of the public cloud are scalability, cost-effectiveness, and flexibility. This is scalable up and down on organizations' need for IT resource without requiring huge capital expenditure on any physical infrastructures. AWS, Microsoft Azure, and Google Cloud have dominated the majority of the market in the public cloud with different services, simple data storage, complex machine learning toolkits. The public cloud market has experienced tremendous growth, mainly because of the increased demand for digital transformation, remote work solutions, and innovative technologies such as artificial intelligence and big data analytics. It is still evolving and attracting businesses of all sizes.

The public cloud application infrastructure services market is projected to be worth US$ 3,570.70 million in 2023. The market is likely to reach US$ 22,527.80 million by 2033. The market is expected to surge at a CAGR of 20.2% from 2023 to 2033.

Attributes	Key Insights
Public Cloud Application Infrastructure Services Market Estimated Size in 2023	US$ 3,570.70 million
Projected Market Value in 2033	US$ 22,527.80 million
Value-based CAGR from 2023 to 2033	20.2%

Country-wise Insights

United States	11.50%
Germany	13.40%
China	25.40%
Japan	18.20%
South Korea	15.90%

Category-wise Insights

Category	Market Share
Application Development	34.3%
Data Services	32.3%

Report Scope

Attribute	Details
Estimated Market Size in 2023	US$ 3,570.70 million
Projected Market Valuation in 2033	US$ 22,527.80 million
Value-based CAGR 2023 to 2033	20.20%
Forecast Period	2023 to 2033
Historical Data Available for	2018 to 2022
Market Analysis	Value in US$ billion
Key Regions Covered	North America Latin America Western Europe Eastern Europe South Asia and Pacific East Asia The Middle East & Africa
Key Market Segments Covered	Application Type Services Enterprise Size Verticals Region
Key Companies Profiled	Amazon Web Services Inc. Alphabet Inc. International Business Machines Corp. Microsoft Corporation Oracle Corp. ServiceNow Inc. Salesforce.com Inc. VMware Inc. NetSuite Inc. Red Hat Inc.

In 2023, Amazon generated around ** billion U.S. dollars from the sale of infrastructure as a service (IaaS), giving it a market share of approximately ** percent, more than the next three largest vendors in the market combined. Microsoft's growth in 2020 was driven by the global healthcare crisis that disrupted workplace environments and increased the demand for Microsoft's cloud products and solutions. In 2023, almost all IaaS providers exhibited growth, while the leading five providers accounted for over ** percent of the market.