Public Cloud - United States

United States

Revenue in the Public Cloud market is projected to reach US$388.50bn in 2024.
Software as a Service dominates the market with a projected market volume of US$187.20bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 18.14%, resulting in a market volume of US$894.20bn 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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Analyst Opinion

The Public Cloud Market in the United States is experiencing steady growth, driven by factors such as increasing adoption of digital technologies, rising awareness of the benefits of cloud services, and the convenience and cost-effectiveness of online solutions. This is reflected in the average growth rate of the market, which is expected to continue as businesses and individuals continue to turn to cloud-based solutions for their IT needs.

Customer preferences: As businesses continue to rely on digital technologies for efficient operations, there has been a growing preference for public cloud solutions. This trend is fueled by an increased demand for remote work capabilities and the need for cost-effective IT infrastructure. Additionally, the rise of digital transformation initiatives and the adoption of hybrid cloud models have also contributed to the growth of the public cloud market.

Trends in the market: In the United States, the Public Cloud Market is experiencing an increase in adoption of hybrid cloud solutions, with companies leveraging both private and public cloud services to optimize their IT infrastructure. This trend is driven by the need for flexible and scalable solutions, as well as the growing availability of advanced cloud management tools. In addition, there is a rise in demand for specialized cloud services, such as AI and machine learning, which are being utilized for various business applications. These trends have significant implications for industry stakeholders, as they must navigate a complex and rapidly evolving market landscape to stay competitive and meet customer demands.

Local special circumstances: In the United States, the Public Cloud Market is heavily influenced by the country's advanced technological infrastructure and strong government support for digital transformation. This has led to a highly competitive market with a wide range of offerings from both established tech giants and emerging startups. Additionally, strict data privacy regulations and security concerns have played a significant role in shaping the market, with companies focusing on providing secure and compliant cloud solutions.

Underlying macroeconomic factors: The growth of the Public Cloud Market is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with strong government support and advanced digital infrastructure are experiencing significant market growth, while countries with limited government initiatives and outdated technology are facing slower growth. Moreover, the increasing adoption of cloud services by businesses, coupled with the rising trend of remote work, is driving the demand for public cloud solutions. Additionally, the impact of the COVID-19 pandemic has further accelerated the adoption of public cloud services, as organizations look to cut costs and improve agility in the face of economic uncertainty.

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.