The public cloud services business is booming and shows no signs of slowing down. According to the latest forecasts from the International Data Corporation (IDC), this segment will experience significant growth in the coming years, with its size expected to double by 2028.
In 2024, it is estimated that public cloud services will generate $805 billion. However, by 2028, this figure will double, reaching $1.61 trillion. This growth is part of a 19.4% year-over-year increase, highlighting the growing importance of the cloud in the business world.
The IDC report reveals that Software as a Service (SaaS) will remain the dominant category, accounting for 40% of investment in public cloud services in 2024. Enterprise Resource Management (ERM) and Customer Relationship Management (CRM) applications will be key in this segment, with a 16.5% year-over-year growth.
On the other hand, Platform as a Service (PaaS) and Infrastructure as a Service (IaaS) will share 20% of cloud services spending in 2024, with less than $1 billion difference between the two. PaaS will be the segment with the highest growth, driven by data management and artificial intelligence platforms, which will experience a 51.1% increase in the coming years. IaaS, focused on networking devices, storage, and computing, will also show significant growth.
Infrastructure system software, although representing only 16% of the market, is gaining ground and is expected to be a major focus of investment in the coming years.
Geographically, the United States will continue to lead the public cloud services market, with an expected spending of $432 billion in 2024. Western Europe will remain in second place, with an investment of approximately $167 billion, highlighting the importance of this region in the growth of the cloud business.
Major cloud service providers like Google, Amazon, and Microsoft are seizing this opportunity to strengthen their presence in the market through recruitment, training, and support to an increasingly specialized IT channel.
The rapid evolution of artificial intelligence is driving this surge in cloud spending, with a growing focus on building, testing, and deploying AI platforms. IDC points out that AI platforms will be the fastest-growing technology in the coming years, and sectors such as insurance and healthcare will accelerate their investment in cloud-based AI solutions.
The IDC report provides a comprehensive view of public cloud services spending, covering nearly 30 industries and eight company sizes in nine regions and 54 countries, providing valuable guidance for IT decision-makers as the market continues its unstoppable expansion.
Source: IDC.