Top Trends Transforming the Public Cloud Market Landscape in 2025: Avaya Introduces Experience Platform Public Cloud

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What Will the Public Cloud Industry Market Size Be by 2025?
The size of the public cloud market has seen significant expansion in the last few years. The market is projected to increase from $688.33 billion in 2024 to $813.15 billion in 2025, showcasing a compound annual growth rate (CAGR) of 18.1%. The historical growth can be traced back to increased computing capabilities, a thriving entertainment industry, enhancements in product design and prototyping, advancements in automotive design and testing, developments in training and education, and cost efficiency.

What's the Long-Term Growth Forecast for the Public Cloud Market Size Through 2029?
There's a predicted significant expansion of the public cloud market size in the upcoming years, which is projected to reach "$1766.26 billion by 2029 with a compound annual growth rate (CAGR) of 21.4%. The anticipated growth over this period can be linked to advancements in gaming and entertainment, the progression of autonomous vehicles, improvements in healthcare simulations, environmental simulations, and scientific investigations. Key trends over the forecast period involve industry 4.0 and digital twin technology, rendering services based on the cloud, cross-sector collaborations, the fusion of AI and machine learning, and the growth of realism and high-resolution graphics.

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What Are the Key Growth Drivers Fueling the Public Cloud Market Expansion?
The anticipated increase in 5G technology usage is predicted to boost the expansion of the public cloud market. 5G is the five-tier evolution of mobile networks specifically designed to connect virtually everyone and everything including gadgets, machines, and objects. The advent of 5G has changed the dynamics of the business world with its superior speed, reduced latency and heightened capacity, enabling high-end applications such as AR/VR, edge computing, IoT as well as enhancing secure access to cloud services and virtual computers via mobile devices. For instance, 5G Americas, a US industry trade body made up of key telecommunication service providers and manufacturers, reported in April 2023 that there were 1.05 billion 5G wireless connections globally in 2022, marking a 76% surge from the close of the previous year. Moreover, these figures are projected to increase to 1.9 billion by the end of 2023 and to 5.9 billion by the end of 2027. As a result, the escalation in 5G usage is steering the growth trends of the public cloud market.

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What Are the Key Trends Driving Public Cloud Market Growth?
In the public cloud market, companies are offering scalable and flexible cloud platforms to support digital transformation. In September 2024, US-based Avaya LLC launched its Experience Platform (AXP) Public Cloud in India. The platform includes AI virtual assistants, LivePerson integration, analytics via Microsoft Power BI and Calabrio, and enhanced customer engagement tools across various sectors.

How Is the Public Cloud Market Segmented?
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), Advertising
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

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Which Companies Are Leading the Charge in Public Cloud Market Innovation?
Major companies operating in the public cloud market include International Business Machines Corporation, Amazon Web Services Inc., Salesforce Inc., Oracle Corporation, Microsoft Corporation, Google LLC, Cisco Systems Inc., VMware Inc., Verizon Wireless Inc., SAP SE, Rackspace Technology Inc., Fujitsu Limited, CenturyLink Inc., Alibaba Group, NTT Communications Corporation, Workday Inc., Faction Global Infotech Pvt. Ltd., DigitalOcean Holdings Inc., Vultr, Linode LLC, OVH Groupe SA, Joyent Inc., Virtustream Inc., Interoute Communications Ltd., BT Group, Sungard Availability Services, NaviSite Inc., Expedient, Lunavi Inc., Phoenix NAP LLC

Which Regions Are Leading the Global Public Cloud Market in Revenue?
North America was the largest region in the public cloud market in 2024. 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, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

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