Report Details:
15 Companies Covered
179 Pages
AI Integration and Automation to Spur the Growth of the Global Public Cloud Service Market, Helping the Sector Achieve a CAGR of 12.81% through 2035
Public Cloud Service Market Overview
The global public cloud market is experiencing strong growth driven by increasing digital transformation across industries, rapid adoption of cloud-based infrastructure, and the rising demand for scalable IT environments.
The public cloud market was valued at 685.38 USD billion in 2024 and is projected to reach 2581.32 USD billion by 2035. This growth is expected to occur at a CAGR of 12.81% throughout the forecast period.
Organizations are migrating to public cloud platforms to reduce capital expenditure, improve IT agility, and support remote work models. Multi-cloud adoption is becoming a preferred strategy as enterprises seek flexibility, avoid vendor lock-in, and improve operational resilience.
Companies are increasingly leveraging AI-driven cloud services to optimize workflows and support analytics-intensive functions.
The market is also driven by the surge in cloud-hosted analytics, digital collaboration tools, and enhanced security technologies that support compliance requirements across regulated sectors such as BFSI and healthcare.
As data volumes grow exponentially, cloud computing continues to serve as the foundation for innovation across artificial intelligence, automation, and edge computing.
Segment Insights
By service model, infrastructure-as-a-service (IAAS) held the dominant share of the market. IAAS provides organizations with scalable and flexible IT infrastructure without the need for physical hardware, significantly reducing cost and maintenance burdens.
Software-as-a-service (SAAS) represented the fastest-growing model due to increasing enterprise adoption of cloud-based productivity tools and collaboration platforms.
Platform-as-a-service (PAAS) is emerging as a strong enabler of developer efficiency, allowing businesses to build and deploy applications without infrastructure management complexities.
By organization size, small and medium enterprises accounted for the largest share of adoption. SMEs leverage public cloud solutions for cost savings, faster deployment, and reduced IT overhead.
Large enterprises, while smaller in current share, are rapidly increasing adoption as part of hybrid cloud and digital transformation strategies aimed at improving compliance, data security, and scalability.
By industry, IT and telecommunications remained the largest segment, driven by network expansion, cloud-native app deployment, and migration of enterprise workloads to the cloud.
Healthcare was the fastest-growing segment, supported by increasing use of electronic records, digital patient engagement platforms, telehealth, and cloud-enabled healthcare analytics.
Regional Insights
North America led the global public cloud market with a 60% market share. Growth is driven by high enterprise IT spending, technology maturity, and extensive cloud infrastructure presence.
Europe represented around 25% of the market, supported by the enforcement of strong compliance regulations such as GDPR, which increases demand for secure cloud environments.
Asia-Pacific accounted for 15% of the market share and showed rapid adoption due to a rising startup ecosystem, expansion of digital commerce, and government-led digitalization strategies in countries like China and India.
The Middle East and Africa held a roughly 5% share, led by cloud expansion in the UAE, Saudi Arabia, and South Africa, where governments actively invest in digital infrastructure.
Key Players
The market is moderately fragmented and driven by major public cloud providers that are expanding services and enhancing service delivery through partnerships and platform upgrades.
Leading players identified in the dataset include Amazon Web Services (US), Microsoft Azure (US), Google Cloud (US), IBM Cloud (US), Alibaba Cloud (CN), Oracle Cloud (US), Salesforce (US), Tencent Cloud (CN), and DigitalOcean (US).
These companies focus on expanding regional cloud availability zones, integrating AI and analytics, and improving cloud security.
Industry Developments
· In November 2023, Amazon Web Services announced the launch of the AWS European Sovereign Cloud, expanding its compliance-focused infrastructure for regulated industries.
· In April 2024, Microsoft Azure expanded new cloud data center regions in Italy to support enterprise digital transformation and strengthen hybrid cloud adoption.
· In May 2024, Google Cloud introduced new sustainability dashboards to help enterprises track carbon emissions data from cloud usage in real time.
· In February 2024, Oracle Cloud Infrastructure opened additional cloud regions in the Middle East to support increasing enterprise cloud adoption and data residency requirements.
Key Findings
· The public cloud market was valued at 685.38 USD billion in 2024 and will reach 2581.32 USD billion by 2035. This progress is set to adhere to a CAGR of 12.81% through the forecast period.
· IAAS led the service model segment, while SAAS was the fastest-growing.
· Small and medium enterprises dominated adoption due to cost efficiency. The healthcare category is the fastest-growing end-use industry segment.
· North America held a 60% of the global market share.
· Industry developments are focused on cloud region expansion, AI integration, and sustainability initiatives.
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