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5G Technology Surge Accelerating The Public Cloud Market Emerges as a Core Driver of the Public Cloud Market in 2025
Public Cloud Market
What Is the Expected CAGR for the Public Cloud Market Through 2025?
The size of the public cloud market has seen significant expansion in the last few years. It's projected to increase from a value of $688.33 billion in 2024 to $812.25 billion in 2025, experiencing a compound annual growth rate (CAGR) of 18.0%. This remarkable growth during the historic period is due to factors such as the rise in computing capability, development in the entertainment sector, advancements in product design and prototyping, progress in automotive design and testing, enhancements in training and education, and cost efficiency.
What's the Projected Size of the Global Public Cloud Market by 2029?
The size of the public cloud market is predicted to grow significantly in the coming years, reaching a value of $1746.2 billion in 2029 with a compound annual growth rate (CAGR) of 21.1%. This substantial growth within the forecast period can be traced back to developments in areas such as gaming and entertainment, autonomous vehicles, healthcare and environmental simulations, and scientific research. Notable trends predicted for the forecast period comprise of industry 4.0 and digital twins, the rise of cloud-based rendering services, collaborations across different industries, integration of artificial intelligence and machine learning, as well as enhanced realism and high-quality graphics.
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Top Growth Drivers in the Public Cloud Industry: What's Accelerating the Market?
The proliferation of 5G technology is anticipated to fuel the expansion of the public cloud market in the near future. Representing the fifth wave of mobile networks, 5G is created to connect virtually all individuals and items, including machinery, objects, and devices. It brings about a business transformation by offering quicker rates, lesser lag time, and increased capacity, thereby facilitating advanced applications such as AR/VR, edge computing, and IoT, and enabling reliable accessibility to cloud services and virtual computers via mobile devices. For example, 5G Americas, a US-based trade outfit consisting of prime telecom service providers and manufacturers, revealed that there were approximately 1.05 billion 5G wireless connections globally in 2022, marking a 76% hike from the culmination of 2021. Moreover, this figure is projected to hit 1.9 billion by the close of 2023, and surge to 5.9 billion by the end of 2027. Consequently, the escalating utilization of 5G serves as a key catalyst for the expansion of the public cloud market.
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What Trends Will Shape the Public Cloud Market Through 2029 and Beyond?
The emphasis in the public cloud market for leading organisations is on the creation of technologically advanced solutions like public cloud platforms, with the aim of increasing scalability, flexibility and cost-effectiveness for companies. Public cloud platforms are cloud computing services provided by external third parties via the internet, with users gaining the ability to make use of common resources such as computing power, storage and networking. For example, in September 2024, US technology corporation Avaya LLC debuted its Experience Platform (AXP) Public Cloud in India. The platform presents a range of innovative customer experience solutions, designed to cater to diverse industries such as healthcare and telecommunications. Key elements comprise digital access via LivePerson integration, AI self-service facilities through the Virtual Agent Ready framework, and improved customer assistance thanks to the generative AI helper 'Avaya Ada'. There is also the inclusion of data analysis tools, courtesy of partnerships with Microsoft's Power BI and Calabrio for employee engagement.
What Are the Main Segments in the Public Cloud Market?
The public cloudmarket 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 Top Companies are Driving Growth in the Public Cloud Market?
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 Will Dominate the Public Cloud Market Through 2029?
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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