Public Cloud Market Size & Share 2023 to 2032
Market Size by Deployment (SaaS, IaaS, PaaS), by Organization Size (Large Enterprise, SME), by Application (BFSI, Healthcare, Media and Entertainment, Automotive, Government, Retail and Consumer Goods, Manufacturing, IT & Telecom) & Forecast.
Report ID: GMI5442
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Published Date: February 2023
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Report Format: PDF
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Authors:
Preeti Wadhwani, Aishvarya Ambekar
Public Cloud Market Size
Public Cloud Market size exceeded USD 400 billion in 2022 and is anticipated to expand at over 10% CAGR between 2023 and 2032, attributed to the availability of cloud integrated with big data, artificial intelligence (AI), and machine learning (ML).
Public Cloud Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
Surging public cloud spending is one of the biggest factors driving the market growth. For instance, India’s public cloud services (PCS) market spending is slated to reach over 7 billion by the end of 2024. Moreover, large companies such as Amazon Web Services (AWS), which plans to invest nearly USD 4.4 billion in India by 2030, are aiding in setting up a strong cloud infrastructure in Asia.
Furthermore, escalating integration of big data, AI, and ML with the cloud, which enables users to visualize, analyze, and monitor unprocessed data using combination technology, is set to complement product adoption. As ML learns patterns from stored data for predictive analysis, mounting deployment of AI and ML is fueling the market expansion. In a recent instance, OpenAI, an AI tech company, along with tech behemoth Microsoft, made their Azure OpenAI service available in November 2022 that combines open-source and cloud-based ML to help developers incorporate AI models into their existing infrastructure.
Surging data breaches and cyberattacks may restrain the industry progression
Despite a positive outlook for product adoption, the public cloud market faces a major hurdle in the form of data privacy and information security concerns. The government and healthcare sectors are highly susceptible to cyberattacks and data breaches. Even though cloud technology helps businesses increase efficiency and cut costs for data management, increasing rates of data theft have depleted trust ability. In October 2022, the U.S. government released the country’s new cybersecurity strategy to keep IoT devices safe. The plan consists of the labeling system and strategies for cybersecurity resilience.
Public Cloud Market Analysis
In terms of deployment model, the SaaS segment accounted for 60% share of the public cloud market in 2022. The burgeoning interest of enterprises in cloud-based AI software for optimizing operations, advancing digitalization in business models, and strengthening corporate flexibility is propelling the market expansion. To cite an instance, in February 2023, Integreon, a legal and business outsourced services provider, launched CyberHawk-AI, an innovative automated technology, using RadarFirst’s SaaS privacy incident management technology.
Based on application, the public cloud market share from the IT & telecom segment is expected to surpass a valuation of USD 250 billion by 2032, owing to the strong dependence of large companies involved in the telecom sector on cloud services. For instance, in May 2022, Vodafone, a British telecom firm, collaborated with Google Cloud on Vodafone’s Unified Performance Management (UPM) platform to plan, build, and manage its network across Europe.
With respect to organization size, the public cloud market revenue from the SME segment is projected to reach USD 750 billion by 2032. Large investments required to set up on-premises data storage infrastructure encourage SME to use IaaS or SaaS solutions to eliminate the need for onsite infrastructure and servers, reducing costs for the company and increasing data accessibility. The growing number of SME across the world is foreseen to spur product adoption. According to the U.S. Small Business Administration, in 2021, 99.9% of all domestic businesses were SME.
The North America public cloud market held around USD 200 billion revenue in 2022, on account of supportive government initiatives towards AI and IoT-based services in the region. Recently, in November 2022, the U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA) awarded a more than USD 4.5 million ‘Internet for All’ grant to Idaho for deploying affordable, equitable, and reliable high-speed internet networks and digital skill training programs throughout the state.
Public Cloud Market Share
Some of the leading companies involved in the market include
These companies majorly engage in new product launches and customer base expansion tactics to stay ahead in the industry.
For instance, in March 2022, Microsoft Corporation, an American Technology Corporation, launched Azure Health Data Services, a PaaS to merge health data and power AI in the cloud. The new service is designed specifically to support Protected Health Information (PHI) in the cloud and support both analytical and transactional workloads.
Impact of COVID-19 Pandemic
The COVID-19 pandemic expedited digital transformation in developing countries, which significantly impelled the market penetration. Cloud computing became a necessary measure for the seamless operation of businesses in light of the prevalent remote working trend induced by stringent social distancing protocols and lockdowns set by governments worldwide. Small enterprises shifted toward cloud storage and public network infrastructure for remote data access, which notably benefitted business growth during the pandemic.
This market research report on public cloud includes in-depth coverage of the industry with estimates & forecasts in terms of revenue in USD from 2018 to 2032 for the following segments:
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Market, By Deployment Model
Market, By Organization Size
Market, By Application
The above information has been provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →