Public Cloud Market Trends
Growth Drivers
- Increasing public cloud spending: The global public cloud market is being driven by rising IT budgets as organizations prioritize cloud adoption to enhance scalability, reduce operational costs, and support digital transformation. For instance, according to a survey, more than 15% of enterprise respondents spent over USD 5.5 million and up to USD 12 million on public cloud every year. As organizations worldwide migrate continuously to the cloud for digital transformation, public cloud spending is projected to remain strong.
- Disaster recovery and business continuity: Public cloud platforms are essential for businesses seeking reliable disaster recovery and business continuity solutions. With their ability to ensure data backup, rapid recovery, and minimal downtime, public cloud services provide cost-effective and callable alternatives to traditional disaster recovery systems, making them a critical component of global cloud adoption. Hence, it is projected to significantly drive the market growth during the forecast period.
Challenges
- Concerns about vendor lock-in and interoperability in multi-cloud setups: Transitioning to the cloud often involves substantial initial costs, including expenses for data migration, system upgrades, and workforce training. Technical complexities can delay deployment timelines and increase project budgets, making it a barrier for some organizations. Hence, these pose a threat to the global public cloud market expansion, considerably.
- High initial migration costs and complexities in legacy system integration: Many organizations fear being locked into a single vendor’s ecosystem, which can limit flexibility and increase long-term costs. Vendor-specific tools and proprietary technologies often create challenges when integrating multiple cloud platforms. In multi-cloud environments, ensuring interoperability between different providers becomes crucial to avoid data silos and maintain operational efficiency, necessitating additional investment in middleware or API management solutions.
Public Cloud Market: Key Insights
The global public cloud market is segmented by regions into North America, Latin America, Europe, Asia Pacific and Middle East and Africa. Among these regions, the market of North America is anticipated to hold the largest market share of around 61% in the year 2023. Primarily driven by nations such as the U.S. and the Canada, U.S. is anticipated to hold the dominant market share by the end of 2023. Presence of a strong economy in the region, along with several government initiatives for the advancement of technologies in different sectors and the increasing technological innovations being made by several players in the region are some of the factors anticipated to drive the growth of the market in the region.. Additionally, the public cloud market in North America is anticipated to attain a CAGR of around 23% over the forecast period.
Further, the public cloud market in Europe is anticipated to grow by a growth rate of around 4.5x during the assessment period 2016-2023 and gain a CAGR of around 24% throughout the forecast period.
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
10.3% |
|
Base Year Market Size (2024) |
USD 487 billion |
|
Forecast Year Market Size (2037) |
USD 1579.1 billion |
|
Regional Scope |
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