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. In 2025, the industry size of the public cloud is estimated at USD 537.1 billion.
Digital transformation initiatives, shift to remote work, adoption of AI, machine language, and big data analytics are some of the key factors driving the public cloud market growth significantly. Furthermore, businesses are leveraging the public cloud to modernize legacy systems, streamline operations, and innovate faster. Focus on data sovereignty and compliance with regional regulations is pushing cloud providers to establish localized data centers.
Additionally, emphasis on sustainability and green cloud initiatives is growing as organizations prioritize environmentally responsible practices. These factors in addition to growth initiatives undertaken by global public cloud market leaders are also boosting the industry expansion further. For instance, in January 2023, Accenture acquired Inspirage which is an integrated Oracle Cloud specialist firm headquartered in Bellevue, Washington, aiming to accelerate innovation for clients. In addition, in September 2024, Avaya announced the launch of the Avaya Experience Platform (AXP) Public Cloud in India, completing the local availability of the company’s unified CX platform.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
10.3% |
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Base Year Market Size (2024) |
USD 487 billion |
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Forecast Year Market Size (2037) |
USD 1579.1 billion |
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Regional Scope |
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Deployment Model (SaaS, IaaS, PaaS)
SaaS segment is set to hold over 64.5% public cloud market share by the end of 2037. The dominance is attributed to its ease of implementation and scalability. Businesses benefit from its subscription-based model, which eliminates the need for complex infrastructure while enabling automatic updates and seamless access to advanced features. In March 2022, Synopsys, Inc. launched a new cloud-optimized electronic design automation (EDA), offering access to the company's cloud-optimized design. Such developments by the prominent players in the market are boosting the segment’s growth further.
Organization (SME, Large Enterprise)
Based on organization, the small and large enterprise (SMEs) public cloud market. SMEs are driving cloud adoption as they leverage its affordability and flexibility to compete with larger organizations. Public cloud solutions empower SMEs to access enterprise-grade tools, streamline operations, and scale rapidly without heavy upfront investments in IT infrastructure. In April 2023, SAP Southeast Asia launched Grow with SAP to help SMEs adopt cloud enterprise resource planning that enables speed, predictability, and continuous innovation. Industry players are initiating several expansion strategies and developments to enhance their market presence, and continuously upgrading their services as per the demands.
Our in-depth analysis of the market includes the following segments:
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Deployment Model |
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Application |
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Organization Size |
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North America Market Analysis
North America public cloud market is anticipated to capture revenue share of over 50% by 2037. Market drivers include an advanced technology ecosystem, high cloud adoption rates, and significant investments in AI, machine learning, and data analytics. The region benefits from strong cloud service providers and widespread hybrid and multi-cloud deployments across industries. Focus on innovation and cybersecurity further drives the market.
The U.S. dominates the North America market, fueled by early adoption of cutting-edge technologies, and robust tech ecosystem, and a thriving startup culture. Government initiatives supporting cloud adoption and data security standards further boost the market. In May 2023, the U.S. Department of the Treasury formally launched the Cloud Executive Steering Group (CESG) which is a public-private partnership dedicated to bolstering regulatory and private-sector cooperation.
Canada public cloud market is growing rapidly, driven by increased demand for digital transformation and compliance with data residency laws. The emphasis on localized data centers and partnerships between global and local providers supports industries including banking, healthcare, and public services. In June 2023, Leaseweb announced the expansion of Leaseweb Cloud Connect in Canada to enhance and expand its fast and secure network connectivity to Microsoft Azure, Google Cloud, and Amazon Web Services (AWS) from Leaseweb’s Canada Data centers.
Europe Market Statistics
Europe public cloud market is expanding steadily and is anticipated to register a considerable share during the forecast period. The market is driven by digital transformation, cloud-first strategies, and increasing demand for data sovereignty. Regulatory frameworks such as GDPR play an important role in shaping cloud adoption, with a strong emphasis on security and compliance. In October 2023, Amazon Web Services launched the AWS European Sovereign Cloud which is a new, independent cloud, developed to assist public sector customers and highly regulated industries meet stringent regulatory data residency and operational requirements.
UK public cloud market is marked by rapid adoption across industries, particularly in financial services, healthcare, and retail. Post-Brexit regulatory alignment and the emphasis on local data centers have influenced cloud strategies. In November 2024, SAP SE announced the general availability of its Sovereign Cloud capabilities in the UK. The launch is in accordance with the UK’s Data Protection Act 2018. It also aligns with the National Cyber Security Centre’s security principles and offers solutions that meet Cyber Essential Plus standards.
France market is characterized by a focus on digital sovereignty and a preference for European cloud providers such as OVHcloud. The government’s Cloud of Trust initiative promotes secure and locally managed cloud services. Moreover, in November 2021, the France government launched the French National Cloud Strategy 2025, allocating USD 772 million to implement the strategy. The market also sees increasing investments in AI and ML capabilities through cloud platforms to support innovation.
Companies in the public cloud market are focusing majorly on strategies such as geographical expansion to enhance service availability. For instance, in October 2022, Oracle invested over USD 6.5 billion to open a public cloud region in Malaysia. Additionally, companies are emphasizing localization of services, including language support and tailored industry solutions, to strengthen their global foothold.
Some of these key players are listed below:
Author Credits: Abhishek Verma
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