Public Cloud Services spending in Europe will reach $148 billion in 2023 and $258 billion by 2026, growing at a 22 percent 5-year 2021-2026 CAGR, according to IDC.
Software-as-a-Service (SaaS) will drive most of the spending in Public Cloud in Europe, especially during challenging times when companies are heavily scrutinizing their budgets.
Companies are looking for tools that enable reduced speed to market and that allow them to speed up the creation of apps. Consequently, Platform-as-a-Services (PaaS) will remain the fastest-growing Cloud segment in the future.
Professional services, banking, and discrete manufacturing will be the top spending industries in Public Cloud Services, absorbing 36 percent of the overall Public Cloud Services spend in 2023. A stronger focus on cost-effective IT solutions, hybrid work, digital transformation acceleration will push investments in the Cloud, which will continue to grow.
“Cloud focus will march on, with companies using Cloud to lower IT costs. European industries will more frequently shift efforts toward Cloud solutions that require lower capital expenditure than traditional IT solutions,” said Andrea Minonne, research manager at IDC UK.