Spending on public cloud services and infrastructure will reach $266 billion in 2021, according to IDC.
Growth in on public cloud services and infrastructure spending will slow over the 2016-2021 forecast period.
The public cloud services and infrastructure market is expected to achieve a 5-year CAGR of 21 percent. Public cloud services spending will grow at 25.6 percent to $128 billion in 2017.
The United States will be the largest market for public cloud services accounting for more than 60 percent of revenues throughout the forecast and total spending of $163 billion in 2021.
Western Europe and Asia/Pacific (excluding Japan)(APeJ) will be the second and third largest regions with 2021 spending levels of $52 billion and $25 billion, respectively.
APeJ and Latin America will experience the fastest spending growth over the forecast period with CAGRs of 26.7 percent and 26.2 percent, respectively.
Six of the eight regions are forecast to experience CAGRs greater than 20 percent over the next five years.
“The growth of cloud market is further pushed by the rise of Digital Transformation (DX), as cloud is expected to be the default delivery mode for DX projects in Europe,” said said Angela Vacca, senior research manager, Customer Insights and Analysis at IDC.
The U.S. industries that will see the fastest growth in public cloud services spending are professional services (21.5 percent CAGR), media (21 percent CAGR), retail, and telecom (each with a CAGR of 20.9 percent).
The U.S. industries that will spend the most on public cloud services are discrete manufacturing, professional services, and banking. Together, these three industries will account for nearly one third of all public cloud services spending in the United States in 2021.
In Asia/Pacific (excluding Japan), banking, professional services, and telecom will deliver more than a third of the region’s public cloud services spending in 2021 while the industries with the fastest spending growth will be professional services, personal and consumer services, and process manufacturing.
Professional services, banking, and telecommunications are the three fastest growing industries worldwide over the forecast period, with banking and professional services also among the top 3 largest industries for worldwide spending on public cloud services.
Software as a Service (SaaS) will remain the dominant cloud computing type, capturing two thirds of all public cloud spending in 2017 and nearly 60 percent in 2021.
SaaS spending, which is comprised of applications and system infrastructure software (SIS), will in turn be dominated by applications purchases, which will make up more than half of all public cloud spending through 2019.
Customer relationship management (CRM) applications and enterprise resource management (ERM) applications will account for more than 60 percent of all cloud applications spending throughout the forecast.
Meanwhile, spending on Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) will grow at much faster rates than SaaS with five-year CAGRs of 30.0 percent and 29.7 percent, respectively.