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Public Cloud Market Revenue Outlook: What CAGR Lies Ahead Through 2030?
The public cloud market has experienced substantial growth in recent years. Its value is projected to rise from $812.25 billion in 2025 to $980.64 billion in 2026, achieving a compound annual growth rate (CAGR) of 20.7%. This historic expansion can be linked to increasing internet penetration, the widespread adoption of virtualization technology, the demand for cost-efficient IT infrastructure, the emergence of digital enterprises, and the ongoing expansion of data centers.
The public cloud market is projected to experience substantial expansion over the upcoming years. This market is anticipated to reach a valuation of $2119.83 billion by 2030, demonstrating a compound annual growth rate (CAGR) of 21.3%. This projected increase is primarily driven by factors such as the migration of AI workloads to the cloud, the rising demand for scalable computing, the expansion of SaaS platforms, increased IoT deployments, and heightened enterprise investment in cloud services. Key developments anticipated during this period encompass on-demand infrastructure provisioning, the prevalence of multi-tenant cloud environments, the availability of scalable compute and storage services, the deployment of cloud-native applications, and the provision of integrated security and management services.
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Public Cloud Market Growth Factors Behind Sustained Expansion
The increasing adoption of 5G technology is projected to boost the public cloud market’s expansion moving forward. 5G, representing the fifth generation of mobile networks, enables an innovative network designed to connect nearly all individuals and objects, including machines, items, and devices. This technology transforms business operations by delivering superior speeds, reduced latency, and expanded capacity, thus empowering advanced applications like AR/VR, edge computing, and IoT, while also improving consistent access to cloud services and virtual computers via mobile devices. As an illustration, in March 2024, 5G Americas, a US-based industry trade organization comprising prominent telecommunications service providers and manufacturers, reported 1.76B 5G global connections by year-end 2023, having added 700M, which signifies a 66% surge in connections during 2023, and is predicted to hit 7.9B by 2028. Consequently, the expanding utilization of 5G is a key factor propelling the growth of the public cloud market.
Public Cloud Market Segments: Where Is Growth Concentrated?
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 Fueling Future Revenue Growth
Companies active in the public cloud market are concentrating on creating advanced technological solutions, including public cloud platforms, to improve business scalability, flexibility, and cost-effectiveness. Public cloud platforms describe cloud computing services delivered by external providers via the internet, allowing users to access and utilize shared resources such as computing power, storage, and networking capabilities. As an example, in September 2024, Avaya LLC, a US-based technology firm, introduced its Experience Platform (AXP) Public Cloud in India. This platform provides a range of sophisticated customer experience solutions customized for diverse industries like healthcare and telecommunications. Its primary features encompass digital access facilitated by LivePerson integration, AI-powered self-service functionalities through the Virtual Agent Ready framework, and improved customer assistance provided by the generative AI assistant ‘Avaya Ada.’ Furthermore, the platform integrates analytics tools via collaborations with Microsoft’s Power BI and Calabrio for workforce engagement.
Public Cloud Market Key Participants And Competitive Landscape
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 Geographic Analysis: Where Is Demand Rising Fastest?
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.
