Public Cloud - North America

North America

In North America, revenue in the Public Cloud market is projected to reach US$413.10bn in 2024.
Software as a Service dominates the market in this region with a projected market volume of US$197.70bn in 2024.
Revenue in North America is expected to show an annual growth rate (CAGR 2024-2029) of 18.16%, resulting in a market volume of US$951.30bn by 2029.
In global comparison, most revenue will be generated the United States, amounting to US$388.50bn in 2024.
In North America, the public cloud market is increasingly dominated by enterprises prioritizing hybrid solutions to enhance data security and regulatory compliance.

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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Analyst Opinion

The Public Cloud Market in North America is experiencing steady growth, driven by increasing adoption of digital technologies, heightened awareness of the benefits of online services, and the convenience they offer. The average growth rate is influenced by factors such as the sub-markets of Infrastructure, Platform, Software, Business Process, Desktop, and Disaster Recovery as a Service.

Customer preferences: The growing reliance on remote work and virtual communication during the COVID-19 pandemic has accelerated the adoption of public cloud services in North America. Businesses are increasingly turning to cloud solutions for seamless collaboration, data storage, and scalability. This trend is driven by the need for flexible and cost-effective IT solutions, as well as the growing preference for remote work and digital communication among the younger demographic. Additionally, the rise of e-commerce and online shopping has further boosted the demand for public cloud services, as businesses look to streamline their operations and meet the changing needs of consumers.

Trends in the market: In North America, the Public Cloud Market is experiencing a surge in demand for cloud-based services as businesses shift towards remote work and digital transformation. This trend is expected to continue, with experts predicting a significant increase in the adoption of cloud services in the coming years. This has significant implications for industry stakeholders, including cloud service providers and businesses looking to leverage the benefits of cloud computing. It also highlights the need for robust cybersecurity measures to protect sensitive data stored in the public cloud.

Local special circumstances: In North America, the Public Cloud Market is heavily influenced by the region's advanced technological infrastructure and high adoption of cloud computing. Additionally, the cultural emphasis on convenience and efficiency has also played a role in driving the market's growth. However, the regulatory landscape in the US and Canada, with strict data privacy laws and increasing concerns over data breaches, has created challenges for cloud service providers. In contrast, Mexico's less stringent regulations have made it an attractive market for cloud adoption, especially for small and medium-sized businesses looking for cost-effective solutions.

Underlying macroeconomic factors: The growth of the Public Cloud Market is heavily impacted by macroeconomic factors such as technological advancements, government policies, and overall economic health. In North America, the market is experiencing rapid growth due to the strong investment in cloud computing infrastructure and favorable regulatory environment. However, in other regions with limited investment and regulatory challenges, the growth is relatively slower. Additionally, the increasing demand for digital transformation across industries and the rising adoption of mobile devices are driving the growth of the Public Cloud Market in North America.

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.