Public Cloud - North America

North America

Revenue in the Public Cloud market is projected to reach US$413.10bn in 2024.
Software as a Service dominates the market with a projected market volume of US$201.00bn in 2024.
Revenue 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.
The average spend per employee in the Public Cloud market is projected to reach US$1,619.00 in 2024.
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).

For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

The Public Cloud market in North America is experiencing significant growth and development.

Customer preferences: Customers in North America are increasingly opting for Public Cloud services due to their flexibility, scalability, and cost-effectiveness. The ability to access and manage data and applications remotely, along with the option to pay only for the resources used, is appealing to businesses of all sizes. Additionally, the Public Cloud offers a wide range of services and solutions, including Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS), catering to diverse customer needs.

Trends in the market: One of the prominent trends in the North American Public Cloud market is the adoption of hybrid cloud solutions. Many businesses are leveraging a combination of Public Cloud and private on-premises infrastructure to create a hybrid environment that offers the benefits of both. This allows organizations to maintain control over sensitive data while taking advantage of the scalability and cost savings offered by the Public Cloud. Another trend is the increasing use of Artificial Intelligence (AI) and machine learning (ML) in the Public Cloud. AI and ML technologies are being integrated into cloud platforms, enabling businesses to analyze large volumes of data, gain valuable insights, and automate processes. This trend is driving innovation and helping businesses make data-driven decisions.

Local special circumstances: North America is home to several major technology hubs, including Silicon Valley, Seattle, and Boston. These regions have a thriving startup ecosystem and a high concentration of technology companies. The presence of these tech-savvy businesses and the availability of skilled IT professionals contribute to the growth of the Public Cloud market in North America. Furthermore, North America has a strong regulatory framework and data protection laws, which provide assurance to customers regarding the security and privacy of their data in the Public Cloud. This regulatory environment fosters trust and encourages businesses to adopt Public Cloud services.

Underlying macroeconomic factors: The North American economy is characterized by its high level of digitalization and technological advancements. Businesses across various industries are increasingly relying on digital solutions to streamline operations, enhance customer experiences, and gain a competitive edge. The Public Cloud plays a crucial role in supporting these digital transformations, driving the demand for cloud services. Additionally, the COVID-19 pandemic has accelerated the adoption of the Public Cloud in North America. The shift to remote work and the need for digital collaboration tools have highlighted the importance of cloud-based solutions. Businesses have realized the benefits of the Public Cloud in enabling remote work, ensuring business continuity, and reducing IT infrastructure costs. In conclusion, the Public Cloud market in North America is witnessing significant growth and development due to customer preferences for flexibility and cost-effectiveness. The adoption of hybrid cloud solutions and the integration of AI and ML technologies are notable trends driving innovation in the market. The presence of technology hubs, a strong regulatory framework, and the digitalization of the economy contribute to the growth of the Public Cloud market in North America. The COVID-19 pandemic has further accelerated the adoption of cloud services, highlighting the importance of the Public Cloud in enabling remote work and ensuring business continuity.

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.