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Public Cloud Revenues to Jump by 26% YoY to $525B in 2023

Jastra Kranjec Finanace Writer Author expertise
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The global demand for public cloud services continues surging as the world becomes increasingly digitized. Over the past years, Amazon Web Services, Microsoft Azure, and Google Cloud Platform have seen impressive growth in the adoption and usage of their services, which will undoubtedly continue in 2023 as the entire market is set to witness a double-digit growth.

According to data presented by Trading Platforms, global public cloud revenues are expected to jump by 26% and hit $525bn this year.

IaaS the Fastest Growing Segment, Revenues to Jump by 35% YoY

Billions of people use cloud storage to manage and store private data. However, the many benefits of the public cloud, including increased agility, flexibility, and scalability, have made it widespread in the business sector. Companies can quickly deploy new applications and services with the public cloud without investing in expensive infrastructure. They can also scale up or down rapidly without additional costs.

According to SkyQuest data, public cloud today accounts for one-third of all enterprise IT infrastructure spending, and that figure will only grow in the future.

The Statista survey revealed that public cloud revenues nearly doubled in the last three years, rising from $214bn in 2019 to $415bn last year. The entire market will continue growing by CARG of 26.7% in 2023, resulting in a market volume of $525.6bn.

As the market’s largest segment, software as a service (SaaS) is forecast to hit nearly $254bn in revenue this year, an 18% increase YoY. By 2025, this figure is expected to touch almost $300bn.

Infrastructure as a service (IaaS), the market’s fastest-growing segment, will see an impressive 35% year-over-year growth, with revenue rising from $117.3bn in 2022 to $158.4bn this year. This figure is projected to increase by another 53% to $243bn in 2025.

Statista expects Platform as a service (PaaS) segment to reach a $113.3bn value this year, up from$83.7bn a year ago, and then climb to $164bn by 2025.

AWS Holds a 16.3% Market Share, Microsoft Azure Follows With a 14.5%

Analyzed by geography, the United States represents the world’s largest public cloud market, expected to generate $258.1bn or almost 50% of total revenues this year. China follows with $54.2bn in public cloud revenues, up from $38.7bn a year ago.

Germany ranked third with $21.1bn in revenue in 2023. The United Kingdom and Japan follow, with $20bn and $18.3bn, respectively.

The Statista data confirmed Amazon Web Services remains the largest player in the public cloud market, with a 16.3% market share in 2022. Microsoft Azure ranked as the second-largest cloud service provider, with a 14.5% market share globally. Salesforce, Google Cloud, and Alibaba follow with 4.7%, 4.2%, and 2.8% market share, respectively.

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Jastra Kranjec Finanace Writer

Jastra Kranjec Finanace Writer

Jastra is an editor, writer, and PR specialist with years of experience in news, research, and report writing. Over the years, she has worked in different fields of journalism and public relations, including politics, economy, and financial markets. As well as TradingPlatforms.com, Jastra has written for Inside Business,The Business Mogul, Business Today, Startups Magazine, StockApps.com, and Buyshares.

Jastra graduated from The University of Zagreb with a Master's Degree in Journalism in 2008. Since then, she has used her writing skills to publish a range of educational articles for TradingPlatforms and continues to increase her understanding of the finance and crypto space.