Global Public Cloud Market Grows at a CAGR of 17.12%

Introduction

A public cloud is a computing service where a third-party provider manages and owns resources such as servers, storage, and applications, which are made available over the internet. It offers scalable and adaptable solutions for individuals, businesses, and organizations, often operating on a pay-as-you-go basis. Public cloud services are accessible to anyone who chooses to purchase or lease them, making them cost-effective and easy to implement. Key providers include Amazon Web Services (AWS), Microsoft Azure, and Google Cloud. This model is particularly beneficial for businesses looking for improved efficiency, scalability, and lower IT expenses.

Market Dynamics

Rapid growth in data generation drives the global market

The rapid surge in data generation is a major driver of the global public cloud market. Organizations across various sectors are generating enormous amounts of both structured and unstructured data, which require flexible storage, real-time processing, and sophisticated analytics—capabilities that are effectively provided by public cloud infrastructure.

• For example, in 2024, approximately 402.89 million terabytes of data were generated each day, totaling around 147 zettabytes annually, with expectations to reach 181 zettabytes by 2025. Additionally, platforms such as TikTok and YouTube contribute heavily to this growth, with TikTok alone generating roughly 7.35 TB of data daily and YouTube hosting over 720,000 hours of video content every day in 2023.

This explosive increase in data requires high-performance computing and scalable storage solutions, prompting businesses to adopt public cloud platforms to efficiently manage, analyze, and extract valuable insights from massive datasets.

Government and public sector cloud adoption create tremendous opportunities

The adoption of cloud technology by governments and the public sector is becoming a key growth driver for the global public cloud market. Governments around the world are updating outdated IT infrastructure to enhance service delivery, improve cybersecurity, and lower operational costs.

• For example, in 2024, the U.S. Department of Defense expanded its Joint Warfighting Cloud Capability (JWCC) program, awarding multibillion-dollar contracts to leading cloud providers such as AWS, Microsoft, Google, and Oracle. In a similar vein, the European Union is heavily investing in sovereign cloud projects to meet GDPR requirements and bolster digital sovereignty.

As public sector organizations seek scalable, secure, and compliant cloud solutions, cloud service providers have a major opportunity to broaden their offerings by providing government-certified services specifically designed for the defense, healthcare, education, and public administration sectors.

Regional Analysis

In North America, the public cloud market is experiencing significant growth, driven by the rapid digital transformation across industries. The United States, in particular, leads this expansion, with companies like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud dominating the market. The widespread adoption of cloud-based solutions is evident in sectors such as finance, healthcare, and retail.

For instance, HealthCare.gov relies on cloud infrastructure for scalability during peak demand periods. The COVID-19 pandemic further accelerated the shift to remote work, increasing reliance on cloud platforms for collaboration tools like Zoom and Microsoft Teams. Additionally, the growing trend of cloud-native application development and AI integration is reshaping the landscape, positioning North America as a global cloud innovation hub.

Key Highlights

• The global public cloud market size was valued at USD 809.95 billion in 2024 and is estimated to grow from USD 948.61 billion in 2025 to reach USD 3359.44 billion by 2033, growing at a CAGR of 17.12% during the forecast period (2025–2033).
• By service type, the global public cloud market is segmented into infrastructure as a service (IaaS), platform as a service (PaaS), software as a service (SaaS), and function as a service (FaaS). The software as a service (SaaS) segment dominated the market.
• By organization size, the market is bifurcated into small and medium-sized enterprises (SMEs) and large enterprises. Large enterprises are a dominant segment in the market.
• By end-user, the market is classified into banking, financial services, and insurance (BFSI), healthcare, retail and e-commerce, manufacturing, telecommunications, and others. The banking, financial services, and insurance (BFSI) segment held the largest market share.
• North America is the highest shareholder in the global market.

Competitive Players

1. Amazon Web Services (AWS)
2. Microsoft Azure
3. Google Cloud
4. IBM Cloud
5. Oracle Cloud
6. Alibaba Cloud
7. Salesforce
8. SAP
9. Tencent Cloud
10. Adobe

Recent Developments

• In April 2025, IT services giant TCS introduced three powerful, India-centric solutions, including a secure, homegrown cloud designed specifically for government and public sector organizations. This initiative aims to bolster the country's data sovereignty and enhance AI capabilities. TCS SovereignSecure Cloud is designed to ensure that sensitive data remains within India by utilizing the company's data centers located in the availability zones of Mumbai and Hyderabad.

Segmentation

1. By Service Type
   1. Infrastructure as a Service (IaaS)
   2. Platform as a Service (PaaS)
   3. Software as a Service (SaaS)
   4. Function as a Service (FaaS)
2. By Organization Size
   1. Small and Medium-sized Enterprises (SMEs)
   2. Large Enterprises
3. By Industry Vertical
   1. BFSI (Banking, Financial Services, and Insurance)
   2. Healthcare
   3. Retail and E-commerce
   4. Manufacturing
   5. Telecommunications
   6. Others
4. By Regions
   1. North America
   2. Europe
   3. Asia-Pacific
   4. Latin America
   5. The Middle East and Africa