Delivering more actionable and strategically valuable research, The Business Research Company’s 2026 market reports feature market attractiveness analysis, total addressable market evaluation, company benchmarking matrices, interactive Excel dashboards, expanded supply chain intelligence, emerging startup coverage, and detailed product insights.
Public Cloud Market Value Analysis: What Growth Is Expected Over The Forecast Period?
The public cloud market has experienced rapid expansion over recent years. It is projected to increase from $812.25 billion in 2025 to $980.64 billion in 2026, reflecting a compound annual growth rate (CAGR) of 20.7%. This historic growth can be attributed to factors such as increased internet penetration, the adoption of virtualization technology, the demand for cost-efficient IT infrastructure, the rise of digital enterprises, and the expansion of data centers.
The public cloud market is projected to experience substantial expansion over the upcoming years, reaching a valuation of $2119.83 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 21.3%. This anticipated growth during the forecast period is primarily driven by factors such as the migration of AI workloads to cloud environments, increasing demand for scalable computing solutions, the proliferation of SaaS platforms, a rise in IoT deployments, and heightened enterprise cloud expenditure. Key developments expected in the same period encompass on-demand infrastructure provisioning, the adoption of multi-tenant cloud setups, the availability of scalable compute and storage offerings, the deployment of cloud-native applications, and comprehensive security and management services.
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Public Cloud Market Expansion Drivers: What Is Shaping Future Growth?
The increased adoption of 5G technology is expected to boost the expansion of the public cloud market in the future. As the fifth generation of mobile networks, 5G enables a new network type designed to connect almost everyone and everything, including machines, objects, and devices. This technology revolutionizes business by offering faster speeds, lower latency, and enhanced capacity, thereby powering advanced applications like AR/VR, edge computing, and IoT, while also improving reliable access to cloud services and virtual computers through mobile devices. For instance, in March 2024, 5G Americas, a US-based industry trade organization composed of leading telecommunications service providers and manufacturers, reported 1.76B 5G global connections at year-end 2023, adding 700M, a 66% increase in connections in 2023, and forecast to reach 7.9B by 2028. Therefore, the growing utilization of 5G is driving the public cloud market’s growth.
Public Cloud Market Segment Outlook: Which Categories Are Expanding The Fastest?
The public cloud market covered in this report is segmented –
1) By Component: Hardware, Software
2) By Service: Business Process Services (BPaaS), Application Infrastructure Services (PaaS), Application Services, Management And Security Services, Systems Infrastructure Services (IaaS)
3) By Organization Size: Small And Medium Enterprises, Large Enterprises
4) By End-User: Discrete Manufacturing, Professional Services, Banking, Process Manufacturing, Retail, Other End-Users
Subsegments:
1) By Hardware: Servers, Storage Devices, Networking Equipment
2) By Software: Cloud Management Software, Virtualization Software, Security Software, Analytics And Monitoring Software
Public Cloud Market Industry Trends: What Changes Are Reshaping Demand?
Leading entities within the public cloud market are prioritizing the creation of advanced technological solutions, specifically public cloud platforms, to boost businesses’ scalability, flexibility, and cost-effectiveness. These platforms are defined as cloud computing services supplied by external providers via the internet, allowing users to utilize common resources such as processing power, storage, and network capabilities. As an illustration, in September 2024, Avaya LLC, a technology firm based in the US, introduced its Experience Platform (AXP) Public Cloud in India. This platform provides a comprehensive set of sophisticated customer experience solutions designed for diverse industries, notably healthcare and telecommunications. Its primary functionalities encompass digital accessibility via LivePerson integration, AI-driven self-service through the Virtual Agent Ready framework, and improved customer assistance provided by the generative AI assistant ‘Avaya Ada.’ Furthermore, the platform integrates analytics features by collaborating with Microsoft’s Power BI and Calabrio for workforce engagement.
Public Cloud Market Key Companies And Competitive Benchmarking
Major companies operating in the public cloud market are Amazon.com Inc.; Microsoft Corporation; Alphabet Inc.; Oracle Corporation; International Business Machines Corporation; Alibaba Group Holding Limited; Tencent Holdings Limited; Huawei Technologies Co. Ltd.; SAP SE; Salesforce Inc.; DigitalOcean Holdings Inc.; OVH Groupe SA; Rackspace Technology Inc.; Baidu Inc.; JD.com Inc.; ByteDance Ltd.; NTT Corporation; Fujitsu Limited; Hewlett Packard Enterprise Company; Dell Technologies Inc.; Broadcom Inc.; Workday Inc.; ServiceNow Inc.; Snowflake Inc.; Zoom Video Communications Inc.
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Public Cloud Market Regional Distribution: Which Areas Drive Market Expansion?
North America was the largest region in the public cloud market in 2025. It is expected to be the fastest-growing region in the global public cloud market during the forecast period. The regions covered in the public cloud market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.