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Public Cloud Market Size By Deployment (SaaS, IaaS, PaaS), By Organization Size (Large Enterprise, SMEs), By Application (BFSI, Healthcare, Media and Entertainment, Automotive, Government, Retail and Consumer Goods, Manufacturing, IT & Telecom) & Forecast, 2023 - 2032

  • Report ID: GMI5442
  • Published Date: Feb 2023
  • Report Format: PDF

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

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

Global Public Cloud Market Revene Share By Deployment Model

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 SMEs segment is projected to reach USD 750 billion by 2032. Large investments required to set up on-premises data storage infrastructure encourage SMEs 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 SMEs 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 SMEs.

Global Public Cloud Market Revenue By Region

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

  • Microsoft Corporation
  • Amazon Web Services, Inc.
  • Google LLC.
  • Salesforce, Inc.
  • Alibaba Group Holding Limited
  • SAP SE
  • Oracle Corporation
  • IBM Corporation
  • Tencent Cloud
  • Nutanix
  • VMware, Inc.
  • Kamatera, Inc.
  • DigitalOcean, LLC.
  • Rackspace Technology

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

  • SaaS
  • IaaS
  • PaaS

Market, By Organization Size

  • Large enterprise
  • SMEs

Market, By Application

  • BFSI
  • Healthcare
  • Media and Entertainment
  • Retail & Consumer Goods
  • Automotive
  • IT & Telecom
  • Manufacturing
  • Government
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Netherlands
    • Switzerland
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Singapore
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • UAE
    • South Africa


Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of public cloud was valued at USD 400 billion in 2022 and is expected to grow at over 10% CAGR over the next 10 years, owing to the integrated availability of cloud with big data, artificial intelligence (AI), and machine learning (ML).

The IT & telecom application segment is anticipated to reach USD 250 billion by 2032, on account of the strong dependence of large companies involved in the telecom sector on cloud services.

The SaaS segment held over 60% market share in 2022, as a result of the burgeoning interest of enterprises towards cloud-based AI software for optimizing operations, advancing digitalization in business models, and strengthening corporate flexibility.

The North America market valuation exceeded USD 200 billion in 2022, due to supportive government initiatives towards AI and IoT-based services in the region.

Public Cloud Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 16
  • Tables & Figures: 743
  • Countries covered: 16
  • Pages: 400
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