IDC predicts that worldwide public cloud services revenue will exceed $800 billion in 2024, marking a 20.5 percent increase from 2023.
This robust growth is expected to continue into 2025. Over the next five years, the public cloud services market is anticipated to achieve a compound annual growth rate (CAGR) of 19.5 percent, with global revenues projected to reach $1.6 trillion by 2028, IDC said.
Dave McCarthy, Research Vice President for Cloud and Edge Infrastructure Services at IDC, attributes this growth to the increasing integration of artificial intelligence. “The mainstreaming of AI is driving organizations to rethink their infrastructure strategy,” McCarthy explained.
“Public cloud IaaS will be an attractive source for AI-ready infrastructure as cloud service providers are heavily investing in the high-performance compute, storage, and networking services needed for AI workloads,” Dave McCarthy said.
In 2023, worldwide revenue for the public cloud services market rose by 19.9 percent to $669.2 billion. Software as a Service – Applications (SaaS – Applications) was the largest revenue contributor, accounting for nearly 45 percent of the market.
Infrastructure as a Service (IaaS) followed with 19.9 percent of the total revenue, while Platform as a Service (PaaS) and Software as a Service – System Infrastructure Software (SaaS – SIS) contributed 18.4 percent and 17.0 percent respectively. Notably, PaaS and SaaS – SIS experienced the fastest year-over-year revenue growth.
The leading public cloud service providers in 2023 were Microsoft, Amazon Web Services, Salesforce, Google, and Oracle. Microsoft maintained its top position with a 16.8 percent market share, followed by Amazon Web Services with a 12.4 percent share.
