Global end-user spending on public cloud services is projected to reach $723.4 billion in 2025, a significant increase from the $595.7 billion expected for 2024, according to the latest report from Gartner, Inc. This 21.5% growth reflects the continued expansion of cloud use cases, driven by artificial intelligence (AI) technologies and hybrid and multicloud environments.
AI and Hybrid Models: Engines of Growth
“The adoption of AI technologies is accelerating the role of cloud in business operations and outcomes,” explained Sid Nag, Vice President and Analyst at Gartner. Multicloud environments and hybrid infrastructure are gaining prominence, supported by integration frameworks that allow efficient management of applications and data across multiple clouds.
The report highlights that by 2027, 90% of organizations will adopt a hybrid approach in their cloud infrastructure. In this context, data synchronization in hybrid environments will be the biggest challenge ahead, especially in managing AI infrastructure and Generative AI (GenAI) at the edge.
Expanding Market Segments
All segments of the public cloud services market are expected to grow by double digits in 2025, with strong momentum in Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). These two sectors will be essential to support the complexity of industry-specific AI and GenAI models, which require advanced training, inference, and tuning capabilities.
| Segment | 2024 (millions $) | Growth 2024 (%) | 2025 (millions $) | Growth 2025 (%) |
|---|---|---|---|---|
| Infrastructure Services (IaaS) | 169,818 | 21.3 | 211,856 | 24.8 |
| Platform Services (PaaS) | 171,565 | 19.1 | 208,644 | 21.6 |
| Application Services (SaaS) | 250,804 | 18.1 | 299,071 | 19.2 |
| Desktop as a Service (DaaS) | 3,466 | 7.7 | 3,849 | 11.1 |
Source: Gartner (November 2024)
The Rise of Integrated Cloud Infrastructure and Platform Services (CIPS)
Gartner notes that organizations are increasingly opting for integrated Cloud Infrastructure and Platform Services (CIPS) that combine IaaS and PaaS into a single solution. This approach simplifies development, deployment, and operations, especially in multicloud environments.
In 2025, spending on CIPS is expected to grow by 24.2%, reaching $301 billion and representing 72% of total spending on IaaS and PaaS. Cross-cloud integration will be a key driver of this trend, enabling federated GenAI capabilities to tackle advanced workloads.
Future Trends and Adoption Strategies
Gartner anticipates that the development of integration frameworks for multicloud environments will remain a priority. Additionally, the use of GenAI capabilities in enterprise applications will broaden the appeal of cloud solutions.
The report also emphasizes the importance of preparing infrastructure and operations strategies to support these trends. Gartner analysts will delve deeper into these topics during upcoming cloud strategy and operations conferences scheduled for December in Tokyo and Las Vegas.
via: Gartner