Public Cloud Market Research Report – Global Forecast to 2023

Global  Public Cloud Market,  By  Cloud  Computing  (Cloud  Billing, Cloud  Communication  Platform, Cloud  Access  Security, Cloud High-Performance Computing  and  Cloud  Infrastructure),  By  Service  (SaaS, PaaS  andIaaS),  By  Organization  Size  (Large  Enterprises  andSmall&  Medium  Size  Enterprises),  By  Industry (Manufacturing, BFSI, Healthcare, Retail, Government, Aerospace  &  Defence, IT  &  Telecommunication)  –  Forecast  to  2023

ID: MRFR/SEM/1684-CR | July 2018 | Region: Global | 110 pages

Market Overview


Global Public Cloud Market is projected to exhibit a 22.78% CAGR over the forecast period (2017-2023), according to the insights offered by Market Research Future (MRFR) in its latest report. It can reach USD 1,322.8 billion by 2023. Public cloud services are offered over the internet and accessed by millions of users for storing of pertinent documents and other multimedia formats. The huge volume of data consumed by customers and the need for large amount of data centers can trigger the demand for public cloud services. The report evaluates the potential for the market by accessing trends, opportunities, growth engines, hurdles, and challenges for estimating the growth trajectory and revenue size during the forecast period. The COVID-19 implications on the industry are analyzed at a granular level and cover its impact on service, type, impact, and vertical.


COVID-19 Analysis


The COVID-19 pandemic has resulted in the shutdown of various operations globally and national governments invoking lockdowns for curbing the spread of the virus. The production and value chain of electronics hardware has been considerably affected, although on a positive note it has encourage remote working which can bode well for the global public cloud market. IT resources hosted on public cloud can give uninterrupted access to organizations and employees without affecting workflow.


The increased spending on cloud services and digital transformation efforts of large and small organizations can spell good tailwinds for the market. Collaboration applications have become a clarion call for public cloud services as teams unite globally on these platforms for ensuring seamless productivity. The rise of e-learning and uptick in food ordering mobile applications are evidence of the large potential of public cloud and a way for diversifying business models.


Market Dynamics


Drivers


Cloud Computing to Push the Demand for Public Cloud Services


The penetration of smartphones, smart devices, and other consumer electronic products has pushed the demand for public cloud services. Public cloud services enable enterprises and individuals for storing pertinent data in a safe and secure manner. The large array of encryption features integrated to the cloud account for securing the data can drive the global public cloud market demand significantly.


Opportunities


SMEs to be New Niche for Cloud Computing


Small and medium enterprises (SMEs) can access data and manage operations efficiently by subscribing to pay-per-usage models. Cloud service companies are targeting SMEs owing to their ability to keep operating heads down and drive productivity. Moreover, the encouragement by nations for embracing digital services presents a prime opportunity for the public cloud market to expand its reach. The reliance on smart devices for commercial and private purposes can spur the market demand over the forecast period.


Restraints


Data Security Threats to Impede Public Cloud Market Growth


The compromise of private and confidential data by being vulnerable to cyberattacks can impede the global market growth. But cloud offering vendors are offering advanced level encryption for its clients in order to mitigate the risk and ensure complete confidentiality.


Cumulative Growth Analysis


CX to be Pivotal in Driving Public Cloud Market


The global public cloud market growth is set to soar at an explosive rate owing to increased spending on cloud services and shift to digitization by enterprises. The focus on customer experience and assurance of seamless security will provide a stimulus to the market. Low prices of SaaS solutions and the potential of cloud management services can bode well for the market.


Segment Overview


By Cloud Computing


Cloud Infrastructure to Rule in the Public Cloud Market till 2023 Cloud infrastructure can gain precedence in the market owing to focus of cloud providers for setting up appropriate hardware for catering to the needs of clients and corporations. The virtualization of servers and other hardware components and subsequent dip in operational costs can drive the segment growth over the forecast period.


Cloud Billing to Display Massive Growth


Cloud billing can display a CAGR of 24.99% over the forecast period owing to the need for secure methods of payment and opportunity in blockchain. It can capture a significant portion of the public cloud market share till 2023. Development of multiple applications and governance of global clients can present a prime opportunity for cloud providers.


By Service


SaaS Segment to Buoy in the Top Position in Public Cloud Market


The Saas segment is expected to dominate and carve a sizeable share of the global public cloud market share owing to deployment of new applications without individual installation. Rising expenditure on business applications and investments on business intelligence are estimated to drive the need for public cloud.


By Organization Size


Large Enterprises to Contribute the Maximum to Market Revenue Earnings


Large enterprises are likely to adopt public cloud owing to easy deployment of applications, time to market, collaboration, and low operating costs. They are inclined towards virtualization of hardware in light of rising operating costs and modernize business applications.


By Industry


BFSI Industry to Register Strong Growth in Global Public Cloud Market


The BFSI industry is on the precipice of expansion owing to stimulus in economies, willingness for novel products, ease of business index in various countries, and easy transfer of funds through mobile applications. The focus on customer-centricity and rollout of new business models by enterprises for catering to customer needs can drive the demand for public cloud till the end of the forecast period.


Regional Analysis


North America to Capture Major Portion of Global Public Cloud Market Share


North America is set to dominate the market owing to increasing digitization and adoption of cloud for storing and management of large swathes of data. This is indicated by the high adoption of the technology by major providers in the U.S. The U.S., in particular, is deemed to display a strong CAGR of 22.01% during the forecast period. Presence of various prominent vendors and inclination of companies towards data centers can drive the regional market growth.


Competitive Landscape


The global public cloud market is extremely competitive with the industry with being controlled by large behemoth organizations. Product development, collaborations, and partnerships are major strategies employed by major companies to gain the edge over the competition. The maximum shares belong to Amazon, Google, IBM Corporation, Microsoft Corporation, and Oracle Corporation. Among them, Amazon holds close to 21% share in the marketspace while boasting a prominent list of companies under its feather. It offers cloud services on a subscription service and offers more features as per the various variants.


Google has assumed the second position in the global public cloud market and holds certain influence in various sectors due to its collaborations with various reputed infrastructure providers. Recently, Google has partnered with Zenoss, Inc., for providing virtualization services to large companies. The low response time and focus on accelerating the pace of technology and launch of new services can disrupt the market positively.


List of Key Companies Covered in the Report



  • Microsoft Corporation (U.S.)

  • com Inc. (U.S.)

  • Fujitsu Limited (Japan)

  • International Business Machines Corporation (U.S.)

  • Cisco Systems Inc. (U.S.)

  • VMware Inc. (U.S.)

  • Oracle Corporation (U.S.)

  • Google Inc. (U.S.)

  • Hewlett-Packard Enterprise (U.S.)

  • com (U.S.)


Recent Developments


In 2020, ClearScale, a cloud services company in the U.S., has achieved growth owing to demand in analytics, data analytics, and machine learning. Its collaboration with Amazon facilitated its rise and attracted high-end clients. The company has managed to raise capital from Cohere Capital for expanding its cloud services. The recent launch of managed services offerings by the company for its clients working on AWS can boost its earnings in the coming years.


IBM Corporation has agreed to acquire Nordcloud Ltd, a Finland cloud managed services provider, in order to tackle the competition in the public cloud marketspace. This can assist the former in gaining the edge in infrastructure modernization and transition to the digital ecospace.


Report Overview


By Cloud Computing



By Service



  • IaaS

  • SaaS

  • PaaS


By Organization Size



  • Large Enterprises

  • Small and Medium Enterprises


By Industry



  • IT & Telecommunication

  • Manufacturing

  • BFSI

  • Retail

  • Healthcare

  • Government

  • Aerospace and Defense

  • Others



Frequently Asked Questions (FAQ) :


The global public cloud market is anticipated to record a substantial market size of up to USD 1,132.88 billion by 2023.

The global public cloud market recorded a substantial market valuation of USD 330 billion in 2017.

The global public cloud market is projected to register a moderate 22.78% CAGR in the forecast period.

The increasing deployment of cloud services, IoT, and rising adoption of public cloud solutions in SMEs are expected to drive the public cloud market during the forecast period.

Cloud infrastructure is slated to expand as the fastest-growing segment owing to their quick measurement technique.

The cloud billing segment is expected to mature at the fastest CAGR of 24.99% over the review period.

A few major market players operating in the global public cloud market are VMware Inc., Oracle Corporation, Microsoft Corporation, Google Inc., and Hewlett-Packard Enterprise, among others.

The global public cloud market, which valued USD 330.73 billion in 2017, is expected to reach an estimated evaluation of USD 1,132.88 billion by the end of 2023. The increasing adoption of cloud platforms and the increasingly widespread demand for the technology is among several key factors driving growth for the market. The public cloud market is expected to grow at an impressive CAGR of 22.78% during the course of the assessment period.


The use of cloud services is gaining traction across various industry verticals, and large market players are quick to adopt cloud solutions. However, small & medium enterprises (SME) have also been observed to be using cloud services in some capacity or the other. Many companies are offering Infrastructure-as-a-Service, and Software-as-a-Service tailored toward SMEs. The adoption of cloud-based services among this business demographic is led by the optimization of workflow that the technology offers. SMEs can easily access data storage and manage operating costs by implementing pay-per-usage services. Enterprises are adopting public cloud services to easily implement and access platform solutions such as big data, data analytics, and the Internet of Things (IoT).  Growing reliance on smartphones and tablets for various private and commercial purposes such as instant messaging applications, video call services and emails is one of the largest proponents of growth for the global public cloud market.


The public cloud, despite great promise, is susceptible to data security threats and data compliance issues. The nature of the public cloud leaves room for a data breach or unexpected attacks from unauthorized platforms. However, its companies and cloud service providers offer encryption services to curb this risk and mitigate the challenge it represents. The increasing adoption of Internet of Things is expected to propel considerable demand for public cloud services. Integration of cloud platforms with IoT will allow secure connectivity, management, and ingestion of data. The public cloud will offer diverse support for devices from leading market players and provide ample growth opportunities during the assessment period.


The global public cloud market is segmented into cloud computing, service, organization size, industry, and region. By cloud computing, the Public Cloud market is further sub-segmented into cloud billing, cloud communication platform, cloud access security, cloud high-performance computing, and cloud infrastructure. Presently the cloud infrastructure segment dominates the market due to the focus on setting up the appropriate infrastructure to support cloud computing capabilities. However, cloud billing is expected to experience the highest CAGR of 24.99% during the forecast period due to the growing need for secure billing and payment methods with maximum security to protect sensitive data.


By service, the Public Cloud market is sub-segmented into SaaS, PaaS, and IaaS. The SaaS segment is expected to grow at the fastest CAGR during the assessment period. SaaS allows users to deploy various applications without installing them individually. Service providers offer management of security, availability, and performance while reducing overall implementation costs, thus boosting market growth.


By organization size, the Public Cloud market is divided into large enterprises and small and medium enterprises. The large enterprise's segment is witnessing the most growth and presently accounts for the most significant segment. Large enterprises have been observed adopting public cloud platforms owing to the high availability, reliability, and cost. With services easily customizable to suit the enterprise and the ease with which software upgrades can be performed ensures efficiency of time and other resources that often used in the maintenance of systems.


By industry, the Public Cloud Market is divided into manufacturing, BFSI, healthcare, retail, government, aerospace and defense, it & telecommunication, and others. The BFSI segment is expected to witness the fastest CAGR during the forecast period. The BFSI segment is made up of banking, financial services and insurance sectors which are largely data-driven, as such, these sectors are inclined toward adoption of cloud services. Adoption of these services offers other benefits to the BFSI segment such as the facilitation of customer intelligence using data-driven insights which allow banks to build stronger customer relationships.


Regional Analysis


North America leads the global growth of the public cloud market and is followed by Europe, and the Asia Pacific. North America and Europe are technically advanced regions with a high concentration of leading market players, start-ups, and tech giants. These market players are key to the growth of the global Public Cloud market as they are investing the development of public cloud computing platforms. The U.S is expected to witness a CAGR of 22.01% during the forecast period.


Competitive Tracking


Research of the market reveals several prominent players that are contributing to Public Cloud market growth such as Amazon.com Inc., International Business Machines Corporation, Cisco Systems Inc., Salesforce.com, Fujitsu Limited, VMware Inc., Oracle Corporation, Microsoft Corporation, Google Inc., and Hewlett-Packard Enterprise.

Increasing penetration of cloud services among small and medium enterprises is driving the public cloud market creating a highly competitive landscape.


A few players dominate the public cloud market. Of all, Amazon Inc. is one of the leaders in providing public cloud services. Amazon Inc. is one of the prominent players in the public cloud market and holds 21% share. Recently, Amazon Web Services, Inc. (AWS), a subsidiary of Amazon.com Company, announced that Verizon Communications had selected AWS as a prominent public cloud provider. Amazon.Com, Inc. focuses on leveraging their technical expertise to offer valuable services to their customers. It emphasizes on becoming the lowest cost customer-centric online marketplace. It has set a number of strategic priorities that would drive growth and improve revenue.


Google Inc. is a leading manufacturer of mixed-signal semiconductors and holds 13% share. Recently, Zenoss Inc., a leader in software-defined IT operations, joined hands with Google Cloud to expand Zenoss capabilities from IT operations management (ITOM) to enterprise hybrid cloud that uses the Google Cloud Platform (GCP). Google Inc. focuses on product innovation and technology to decrease the response time to the customers, provide better service, gain a competitive advantage and ensure better growth of their businesses while reducing the cost of operations.


IBM Corporation deals in the discipline of information technology, innovation, and research that manufactures computer hardware, software, and middleware and also provides IT consulting services and holds 10% share. The company focuses on the strategic forces behind the digital revolution including data, cloud, and engagement, driven by mobile and social, and underpinned by security.


Microsoft Corporation provides opportunities for digital transformation, managed services, intellectual property, cloud solution providers, and others and holds 8% of the total market share. The company’s strategic approach is to innovate product development which applies to their entire value chain. It also focuses on maintaining the quality of products and believes in strategic partnerships. It is also focused on business planning, reinventing productivity & business processes, the intelligent cloud platform, creating more personal computing application development processes, infrastructure services, and others


Oracle Corporation specializes in developing and marketing database software and technology, cloud engineered systems, and enterprise software products. It holds a 2% market share. The company focuses on the expansion of their products and services that they are offering via cloud and on-premise.