Public Cloud - Americas

Americas

Revenue in the Public Cloud market is projected to reach US$428.80bn in 2024.
Software as a Service dominates the market with a projected market volume of US$201.80bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 18.18%, resulting in a market volume of US$988.50bn by 2029.
In global comparison, most revenue will be generated in the United States (US$388.50bn in 2024).

Key regions: United States, Germany, China, Japan, United Kingdom

Definition:

A public cloud is defined as the digital infrastructure and computing resources that are managed by a service provider. Examples of public cloud computing resources include virtual machines, storage, and services, all of which are available for purchase with flexible (e.g., pay as you go and subscription) business models. Such payment options make it possible for customers to access, scale, and utilize resources as needed. Public cloud solutions make it possible for users to save on IT costs, increase their efficiency, and take advantage of advanced technologies without having to invest in long-term IT solutions. Public cloud service providers own and maintain the physical infrastructure, hardware, and software. Users only need to pay for the computing resources that they require. The Public Cloud market refers to the companies that provide these cloud computing resources and services to individuals, businesses, and organizations.

Structure:

The Public Cloud market is structured into five markets based on the type of service models provided by the companies.

The Infrastructure as a Service (IaaS) market covers the resources and services related to the data center infrastructure.
The Platform as a Service (PaaS) market covers the resources and services related to the virtual environments used for software development.
The Software as a Service market (SaaS) market covers the resources and services related to software applications that can be accessed via a web browser.
The Business Process as a Service (BPaaS) market covers the resources and services related to the various business processes such as finance and accounting, human resources, customer service, and supply chain management, all delivered through the cloud.
The Desktop as a Service (DaaS) market covers the resources and services related to virtual desktop environments, which are accessible from any device with an internet connection.

Additional Information:

The public cloud market comprises revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players of the public cloud market include companies such as Amazon (Amazon web services), Microsoft (Azure), Google (Cloud), and IBM (Cloud).

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Market

Region

Region comparison

Currency

Analyst Opinion

The Public Cloud market in Americas is witnessing substantial growth due to factors like increased adoption of digital technologies, rising awareness about health, and convenience of online health services. The market's average growth rate is impacted by various sub-markets like Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery.

Customer preferences: The increasing adoption of remote work and digital collaboration tools has accelerated the demand for cloud-based solutions in the public sector. This trend is driven by the need for efficient and secure communication, data storage, and accessibility across geographically dispersed teams. Additionally, the shift towards cloud-based services is fueled by the growing reliance on technology and the need for cost-effective solutions in the face of budget constraints.

Trends in the market: In the Americas, the Public Cloud Market is experiencing a surge in adoption due to the increasing demand for digital transformation and cost-effective solutions. This trend is expected to continue as businesses prioritize agility and scalability. As a result, there is a growing focus on multi-cloud and hybrid cloud strategies, allowing organizations to optimize their workloads and infrastructure. This shift towards cloud-native solutions also presents opportunities for cloud service providers to offer value-added services, such as AI and automation, to meet evolving customer needs. This trend is significant as it enables businesses to accelerate their digital transformation efforts and stay competitive in the market. However, it also presents challenges for traditional IT companies that may struggle to keep up with the pace of innovation in the public cloud space. As a result, industry stakeholders must adapt and evolve to remain relevant in the rapidly evolving public cloud market.

Local special circumstances: In the Americas, the Public Cloud Market is heavily influenced by the unique regulatory landscape in each country. For example, in the United States, the market is driven by the large number of tech companies and their adoption of cloud solutions. In Brazil, the market is influenced by the government's efforts to modernize its IT infrastructure and promote digital transformation. In Canada, the market is driven by the country's high internet connectivity and the adoption of cloud-based services in various industries. These local factors play a significant role in shaping the growth and trends of the Public Cloud Market in the Americas.

Underlying macroeconomic factors: The growth of the Public Cloud Market is also influenced by macroeconomic factors such as technological advancements, government support, and investment in digital infrastructure. Countries with favorable regulatory environments and strong investment in cloud technologies are experiencing faster market growth compared to regions with regulatory challenges and limited digital funding. Additionally, the increasing adoption of digital transformation strategies and the growth of e-commerce are driving the demand for secure and scalable cloud solutions in the Americas.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the money spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of telecommunications infrastructure. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.