Public Cloud Market Analysis

Service Model Segment Analysis

In the public cloud market, the SaaS segment based on the service model is expected to garner the highest revenue share of 64.5% during the forecast period. The dominance of the segment is effectively attributable to its ease of implementation and scalability. Also, businesses benefit from its subscription-based model, which diminishes the need for complex infrastructure while enabling automatic updates and seamless access to advanced features. Synopsys, Inc., in March 2022, announced that it launched a new cloud-optimized electronic design automation (EDA) solution on Microsoft Azure, by offering a pay-as-you-go SaaS model for chip design and verification. This approach provides semiconductor companies with very flexible, scalable compute resources, thereby accelerating time-to-market. By combining Synopsys Cloud with Azure’s high-performance infrastructure, chipmakers can optimize productivity, manage systemic complexity, and innovate more efficiently in a secure cloud environment, hence boosting the segment’s growth further.

Public Cloud and SaaS Spending and Vendor Distribution 2021

Source: The U.S. Department of the Treasury

Organization Segment Analysis

The large enterprises segment is predicted to grow at a considerable rate in the market over the discussed timeframe. The growth of the subtype is highly subject to their extensive IT budgets, complex global operations, and requirements for scalable, resilient infrastructure to support diverse workloads. These large organizations opt for multi-cloud and integrated SaaS, PaaS, and IaaS solutions to enable digital transformation at scale. In January 2023, Microsoft announced the general availability of Azure OpenAI Service, allowing businesses to access advanced AI models such as GPT-3.5, Codex, and DALL-E 2 on enterprise-grade Azure infrastructure. In addition, the large enterprises, including KPMG, are leveraging this service to streamline operations and gain insights from data, reflecting substantial cloud adoption at scale. Hence such instances, the significance of enterprise cloud spending for market growth is supporting complex, scalable workloads.

End use Segment Analysis

By the end of 2035, the BFSI segment is anticipated to capture a lucrative revenue share in the public cloud market due to stringent requirements for secure data handling, real-time analytics, and customer engagement platforms. Besides, cloud adoption enables digital banking, risk management, and advanced analytics by ensuring regulatory alignment. In addition, financial institutions are migrating core banking systems, payment platforms, and fraud detection tools to the cloud with a prime focus on enhancing operational efficiency and scalability. The adoption of AI and machine learning on cloud platforms further strengthens predictive analytics. Furthermore, collaborations with leading cloud providers help BFSI organizations maintain compliance with global data protection standards while reducing infrastructure costs is also prompting a continued revenue stream in this segment.

Our in-depth analysis of the market includes the following segments: