Public cloud companies provide cloud computing services to organizations and individuals over the internet. These services include infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS).
*Disclaimer: List of key companies in no particular order
Competitive Landscape of Public Cloud Market
The public cloud market continues its relentless ascent. This stratospheric growth attracts an ever-expanding roster of players, each vying for a slice of the digital pie. Understanding the dynamics at play demands a clear examination of the competitive landscape, encompassing established giants, nimble new entrants, and the strategies shaping their trajectories.
Some of the public cloud companies listed below:
Strategies adopted by Key Players:
Factors Shaping Market Share Analysis:
New and Emerging Companies:
The public cloud market constantly welcomes new entrants with innovative capabilities. Startups like Snowflake, Databricks, and MongoDB bring specialized cloud-native solutions for data warehousing, analytics, and database management, respectively. These niche players challenge established players by offering best-in-class solutions for specific tasks.
Latest Company Updates:
IBM introduced IBM Hybrid Cloud Mesh in 2023. This SaaS solution aims to help businesses manage their hybrid multicloud architecture. Modern businesses can operate their infrastructure across hybrid multicloud and heterogeneous environments thanks to IBM Hybrid Cloud Mesh, which is powered by "Application-Centric Connectivity" and designed to automate the process, management, and observability of application connectivity in and between public and private clouds.
Oracle Corp. today announced the launch of a dedicated cloud infrastructure in 2023 that will only be used by the 27 EU member countries. This infrastructure will offer the same services, service-level agreements, and pricing as Oracle's larger public cloud.
The EU Sovereign Cloud, which launches in July, is wholly housed inside the EU, maintained by EU-based staff, and run by Oracle-owned legal companies with EU incorporation. It is initially accessible via data centres in Frankfurt and Madrid, while additional locations might be added later.
In order to assist businesses in making the most of their cloud spending as they continue to deal with macroeconomic uncertainties, Google Cloud released a Pricing API for its cloud services in 2023. The new API, which is now in public preview, outperforms Google's current Billing Catalogue API, according to the business.
As business goes more and more to the cloud in 2023, firms will need to strengthen their defences against increasingly sophisticated malware attacks. They can with SentinelOne. Threat Detection for Amazon S3 and Threat Detection for NetApp are the first two products in the new Cloud Data Security product line, which was launched today by the world leader in autonomous cybersecurity. These tools are made to assist businesses employing NetApp file storage and Amazon S3 object storage in identifying and stopping the spread of malware throughout their corporate networks and cloud environments.
Public Cloud Market Size was valued at USD 607.57 Billion in 2023. The Public Cloud market industry is projected to grow from USD 685.3823 Billion in 2024 to USD 1797.32 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.81% during the forecast period (2024 - 2032). With the growing use of internet and surging data storage issues due to limited storage capacities in devices, cloud plays a crucial role in handling data effectively. Public cloud is a platform offered by third parties like AWS, IBM, Google, and others which enable internet users to upload files on cloud for free or as per plans offered by the individual partners. This not only supports the government and individuals to store data effectively but also secures it and enable individuals to access data from anywhere. This process also supports the idea of sustainability, and it is environmental friendly, as it reduces paper work and the requirement of multiple devices to handle it like hard drives, pen drives, and others.
As per Analyst at MRFR, “With the booming tech-industry and introduction of various software and other tools, coupled with surging dependency on internet remains prime reason for growing public cloud platform demand, in order to store and share data effectively. In light of this, the market is expected to flourish in coming years globally, creating positive growth sphere for the market players to expand and grow.”
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
IoT and artificial intelligence (AI) are examples of advanced computing technologies that are widely used in commercial sectors and industries. The increased adoption of IoT solutions generates massive amounts of data, and cloud computing plays a vital role in storing and managing the data. Many young entrepreneurs are operating their operations by mixing AI and the cloud. Veritone, for instance, has developed an AI-based operating system based on a cognitive computing platform that is native to the cloud for evaluating the huge amounts of information collected from diverse sources. Another company, Quantifi, analyzes enormous amounts of information using cloud-based AI to optimize the placement of digital advertisements for different businesses. Similarly, all major AI and IoT-based apps are cloud-powered in the backend, and their increasing penetration in varied industry verticals is providing a variety of potential prospects for the public cloud market.
Furthermore, these technologies are transforming the market by assisting individuals in monitoring, analyzing, and displaying unprocessed data. Using these emerging technologies in combination with cloud solutions helps firms improve their visualization capabilities and make complex data accessible and usable. The expanding use of Al and ML technologies in enterprises has increased data utilization while decreasing data storage concerns. These technologies also help to boost business efficiency, improve decision-making processes, and reduce operating costs.
Businesses are embracing AI-powered solutions to become more strategic, efficient, and insight-driven. Al can automate repetitive and difficult procedures to enhance production and execute data analysis without the need for manual intervention. IT departments can also use Al to monitor and manage critical workflows. Companies that provide cloud solutions and services are always focusing on R&D, product upgrades, and new product releases that incorporate Al and ML. For instance, Microsoft Corporation launched Azure Health Data Services in March 2022. It is a platform as a service (PaaS) that is intended to accommodate both analytical and transactional workloads. It combines health data and supports cloud-based artificial intelligence (AI), exclusively supporting protected health information (PHI). Thus, the increasing adoption of IoT, AL, and ML is expected to drive market growth.
Based on Service Model, the Public Cloud Market segmentation includes infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS). SaaS dominates the market in 2022. SaaS provides businesses with access to software applications over the internet, eliminating the need for businesses to install and manage software on their own IT infrastructure. SaaS providers typically offer a range of business applications, including email, productivity suites, and customer relationship management (CRM) tools.
SaaS has become a popular option for businesses of all sizes, as it offers numerous benefits over traditional software installation and management. One key advantage is that it reduces the need for businesses to invest in expensive hardware and IT infrastructure, as all the software applications are hosted and managed by the SaaS provider. This also means that businesses can scale their software usage up or down as needed, without having to worry about managing physical infrastructure. It also offers more flexibility and accessibility compared to traditional software installation. Since the applications are accessed over the internet, users can work from anywhere with an internet connection and on any device, including laptops, tablets, and smartphones. This is particularly important in today's increasingly mobile and remote workforce.
Furthermore, SaaS providers often offer regular software updates and maintenance, ensuring that the applications are always up-to-date and secure. This means businesses can focus on their core operations without worrying about software maintenance and security issues.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Based on Organization Size, the Public Cloud Market segmentation includes Small and Medium Enterprises and Large Enterprises. With the growing startup culture, especially across emerging economies supported by government initiatives, the SMEs numbers are growing. Small and medium enterprises, also known as SMEs, are organizations that have fewer than 500 employees and generate lower revenue compared to large enterprises. SMEs may have limited IT resources and budgets and may not have in-house IT teams. Cloud computing provides SMEs with access to affordable, scalable, and reliable IT resources, without the need for significant upfront investments in hardware and infrastructure. Cloud solutions enable SMEs to improve their productivity, collaboration, and data security, while also reducing costs and increasing their agility.
Based on the Industry, the Public Cloud Market segmentation includes IT & Telecommunication, Manufacturing, BFSI, Retail, Healthcare, Government, Aerospace and Defense, Others. By Industry, BFSI segment holds the majority market share in 2022 contributing 25.1% of the market share. The Banking, Financial Services, and Insurance (BFSI) industry is one of the most regulated and data-intensive industries. Cloud computing solutions enable BFSI companies to securely store, manage, and analyze their data, while also improving their customer engagement and reducing their costs. Cloud solutions also enable BFSI companies to enhance their risk management, fraud detection, and compliance with regulatory requirements.
Followed by IT & Telecommunication, the IT & Telecommunication industry is one of the largest adopters of cloud computing solutions. Cloud computing enables IT & Telecommunication companies to provide efficient and cost-effective services to their customers, while also improving their own internal operations. Cloud solutions allow these companies to scale up or down quickly, to keep pace with the changing market demands, and to reduce the burden of maintaining and upgrading hardware and software.
By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. North America dominates the market, growth in the region is attributed to improved internet access, higher adoption of cloud technology for increased automation and agility, expanding government initiatives to build IoT connections, and the need for enterprises to offer work from home options for employees in the region. Public cloud computing adoption in the region due to the ever-increasing demand to improve the customer experience drives the market growth in the region. Furthermore, the region is the location of a variety of cloud technology firms that are cooperating with telecom providers, industry leaders, and others to provide cloud solutions to organizations. For instance, Ingram Micro, a Mexican firm, has partnered with Cisco to provide cloud solutions to its customers. Such new advancements are projected to promote market growth during the forecast period.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
According to the MRFR research, the United States held the largest market share in 2022, and this trend is predicted to continue till 2032, followed by Canada and Mexico. Furthermore, the United States has well-established end-user sectors and suppliers that are constantly adapting to current technologies in order to boost corporate productivity and labor efficiency. Several small and large public cloud solution providers, including Amazon, Microsoft, Google, VMware, Salesforce, Oracle, and IBM, are based in the United States and are major drivers of the country's public cloud market expansion. In North America, around 94% of US corporate IT decision-makers use at least one type of public cloud deployment.
Furthermore, cloud storage is the top IT/operational priority for 64% of American infrastructure in the upcoming year. Managed service providers and global service integrators assist businesses in the United States with cloud migration projects. The United States accounts for 44% of global public cloud provider revenue and 51% of global hyperscale data center capacity.
The public cloud market has witnessed significant growth over the forecast period due to increasing penetration of cloud services among SMES and increasing demand for AI, machine learning, and the internet of things. There are several domestic, regional, and global players operating in the public cloud market who continuously strive to gain a significant share of the overall market. During the study, MRFR has analyzed some of the major players in the public cloud market who have contributed to the market growth. These include Alibaba Group Holding Limited, Amazon.com Inc, Adobe Inc, Google LLC, IBM Corporation, Microsoft Corporation, Oracle Corporation, Salesforce.com Inc, SAP SE, Fujitsu Limited, Cisco Systems Inc, VMware Inc, Hewlett-Packard Enterprise, Tencent Cloud, OVH Cloud, LUMEN, Rackspace Cloud.
Among these, AWS, Microsoft, Salesforce, Google, and Alibaba are among the top 5 players in public cloud market. These players focus on expanding and enhancing their product portfolio and services to remain competitive and increase their customer base. Additionally, these players are focusing on partnerships & collaborations to expand their business and customer base to enhance their market position.
Amazon's strategy is based on leveraging its technological capabilities. It follows a cost leadership strategy aimed at offering maximum value to its customers at affordable rates. To increase its sales, the company focuses on improving all aspects of customer experience, including affordability, ease of use, and reliability. To enhance its corporate network and increase its technical expertise, Amazon acquires and builds partnerships with several technology giants. It has set several strategic priorities to drive growth and improve revenue in the upcoming years. The company applies product development as a supporting strategy for its business growth.
Microsoft’s business strategy is focused on technological innovations, which helps it maintain its position in a competitive environment. The company is focusing on developing its intelligent cloud portfolio by investing heavily in its Windows Server and virtualization platform. The company prioritizes investments to capture the expanding market opportunities through product innovations complemented by acquisitions and partnerships. It strategizes to broaden its product offerings and reach new audiences in the global market.
Salesforce pursues the strategy of expansion and product diversification. It focuses on joint investments and R&D projects as a key strategy to meet its digital vision. The company concentrates on streamlining inventories and strengthens operational capabilities. It aims to provide differentiated products and services to customers by integrating the latest technologies into existing products.
Public Cloud Market Highlights:
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